DeFi Looping Strategy

DeFi Looping Strategy Nets Ethereum Traders $120 Million Profit

19 February 2024

Recently, two Ethereum traders have amassed a jaw-dropping $120 million in profits within just 24 hours, using a strategic manoeuvre known as ‘looping.’ 

This remarkable feat underscores the lucrative opportunities in the cryptocurrency market, especially for those employing innovative trading strategies.

The traders, operating through wallet addresses 0x28 and 0x74, have strategically utilised several lending protocols to amplify their liability to Ether, the native cryptocurrency of the Ethereum blockchain. 

By employing the looping strategy, they have effectively used their positions to magnify their investments, showcasing the potential for substantial gains in the volatile crypto landscape.

What Caused Their Success?

To be more clear, at the heart of their success lies the looping strategy, a favoured tactic within the DeFi ecosystem. This approach involves a series of strategic manoeuvres wherein a trader deposits a particular digital coin, such as Ether, into a lending protocol. 

Subsequently, they borrow a different asset, typically a stablecoin like DAI, against their deposit. The borrowed funds are then used to purchase more of the original cryptocurrency, amplifying the trader’s exposure.

The key to this strategy lies in its ability to enable leveraged long positions, allowing traders to multiply their capital several times over. 

While this approach carries inherent risks, including the possibility of liquidation in the event of a notable price drop, the potential rewards are substantial.

Motivator of Ethereum and Future Trends

Guided by their bullish sentiment, the traders have capitalised on Ethereum’s upward trajectory, with the cryptocurrency currently trading at around $2,700. However, their journey to riches began when Ether was valued at a mere $1,000, highlighting the significant appreciation seen in recent years.

Looking ahead, Ethereum enthusiasts anticipate several catalysts to propel the cryptocurrency’s price further. The approaching Ethereum Dencun upgrade, criticised for reducing transaction costs on Ethereum’s layer 2 networks, is expected to enhance network efficiency and foster greater adoption.

Moreover, all eyes are on the possible approval of an Ether ETF, following in the footsteps of the recent approval of Bitcoin spot ETFs. 

Industry heavyweights have submitted applications for an Ether spot ETF, with a decision anticipated by May 23. If approved, such an ETF could attract substantial institutional investment, driving demand and potentially pushing Ether’s price to new heights.


The remarkable success achieved by these Ethereum traders serves as a case of the boundless opportunities within the cryptocurrency market. Through strategic manoeuvres like looping, investors can use the power of DeFi to maximise their returns, albeit with accompanying risks.

Fueled by upcoming upgrades and regulatory developments such as Ethereum ETF approvals, the landscape for crypto trading remains promising with potential. While volatility persists, savvy DeFi traders’ profit is likely to boost in this booming ecosystem.In the reality of DeFi, wise investors are constantly on the lookout for the best altcoin to buy, knowing that the potential for profit knows no limits.

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