Coinbase Introduces ETH-Backed Loans Up to $1 Million

CryptoQuant has reported that recent Bitcoin market downturns have been primarily driven by selling from US investors. The analysis highlights the 'Coinbase Premium Gap,' which indicates that Bitcoin is trading at lower prices on Coinbase compared to Binance, suggesting a significant selloff by American investors, particularly institutional ones.

Crypto prices fell sharply on November 21, with Bitcoin dropping to $85,310, marking a significant decline amid a broader market downturn. The total cryptocurrency market capitalization has fallen below $3 trillion for the first time since May, now estimated at approximately $2.95 trillion. Other major cryptocurrencies, including Ethereum, XRP, and Solana, also experienced declines, contributing to over $950 million in liquidations.

Ethereum's price has declined below $3,000, testing a low of $2,770. The cryptocurrency is currently attempting to recover but faces resistance around $2,880. A bearish trend line is forming with resistance at $3,050, and if Ethereum settles below the $2,800 zone, further declines may occur.

Coinbase has launched Ethereum-backed loans for eligible U.S. customers, allowing users to borrow up to $1 million in USDC without selling their ETH holdings. This new offering aims to enhance liquidity for users while leveraging their existing cryptocurrency assets.

21Shares has launched a new leveraged ETF linked to Dogecoin, coinciding with the completion of its acquisition by FalconX. This initiative provides traders with a novel method to engage with Dogecoin, a prominent cryptocurrency known for its meme origins. The launch signifies a pivotal moment for both 21Shares and FalconX as they expand their offerings in the cryptocurrency market.

Ether treasury companies are currently facing significant unrealized losses as Ether's price has fallen below $3,000, erasing a year's worth of gains. The decline in mNAV valuations raises concerns that ETH could drop further, potentially below $2,500, complicating the financial landscape for these companies.

Investors are reducing their exposure to risk assets as optimism wanes regarding potential interest rate cuts by the Federal Reserve before year-end. This shift has led to declines in major cryptocurrencies, including Bitcoin (BTC), Ethereum (ETH), Solana (SOL), XRP, and Dogecoin (DOGE).

Coinbase has introduced ETH-backed loans, allowing users to borrow up to $1 million in USDC against their Ether holdings. This launch comes as the company's Base-powered network has facilitated over $1.25 billion in loans, marking a significant milestone in onchain lending.