A significant sell-off of 636,000 ETH by a major holder has led to a sharp increase in borrowing costs on the Aave platform. The annual percentage rate (APR) for ETH loans on Aave spiked from 2.13% to a peak of 7.35%, before settling at 5.33%. This surge in rates comes as Aave's ETH supply stands at 3.09 million, with 2.92 million ETH already borrowed, representing an 80.99% utilization rate. The increased borrowing costs are impacting users who rely on ETH loans for liquidity.