7 Siblings and Trend Research: The Leveraged Battle Between Two Ethereum Whales

OffchainOracle · 2026-01-30T11:13:09+00:00

According to the survey, "7 Siblings" accumulated 596,800 ETH through the Spark protocol, becoming the platform's largest single depositor. Using this ETH as collateral, they lent out $193 million in stablecoins and purchased 49,287 ETH during the market downturn. However, the subsequent decline in Ethereum's price led to an unrealized loss of $27 million on their investment, highlighting the high leverage risks and vulnerability of large holders in DeFi.

OffchainOracle

2026-01-30 11:13:09

Abstract generation in progress

According to recent research by blockchain analyst EmberCN, besides Trend Research holding 651,300 ETH, another mysterious whale “7 Siblings” has also accumulated an astonishing Ethereum position through similar leverage borrowing techniques. This story reveals how whales in DeFi utilize lending protocols to establish high-risk positions.

Who is “7 Siblings”—The Mysterious Whale on Spark Protocol

“7 Siblings” has attracted on-chain detective attention due to its activities on the DeFi lending protocol Spark. The entity deposited 596,800 ETH across eight addresses on Spark, making it the largest single depositor in the platform’s history. This substantial position is mainly distributed across addresses 2 to 7, 10, and 11 within the protocol, forming the core of this account system.

From Spark Lending to Large-Scale Sweeps: Unveiling the Leverage Strategy

Backed by collateral of 596,800 ETH, “7 Siblings” borrowed $193 million in mixed stablecoins—including DAI, USDT, and USDS—from Spark. These borrowed funds were used in a systematic Ethereum sweep in Q4 last year (October to November). During that market downturn, the entity used these stablecoins to purchase 49,287 ETH at an average cost of approximately $3,531.

Book Losses: The Leverage Dilemma in the Current Market

Since then, the situation has changed. The price of Ethereum has since adjusted to around $2,730 (as of January 2026), meaning that this portion of “7 Siblings”'s position is currently underwater. On-chain estimates suggest that this investment has already incurred an unrealized loss of about $27.7 million—this leveraged trade exemplifies the risky ventures whales undertake in DeFi.

This incident reflects the high leverage risks in the crypto market and the fragility of large holders within lending protocols. Similar position-building methods as Trend Research and “7 Siblings” have become common strategies for whales to accumulate positions in a bear market, but they also expose potential risk exposure when market conditions turn.

ETH2,25%

DAI0,07%

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