Solana News: Coinbase Just Added Solana as Loan Collateral Alongside Bitcoin and Ethereum: Is SOL Finally Getting Its Moment?

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Coinbase has added Solana as eligible collateral for its crypto-backed lending service, permitting U.S. customers to borrow as much as $100,000 in USDC in opposition to their SOL holdings. Bullish information for Solana.

The integration was on May 12, confirming SOL joins Bitcoin and Ethereum as accepted collateral on Coinbase’s non-custodial mortgage product constructed on the Morpho protocol over Base.

The most loan-to-value ratio for SOL is about at 70%. That quantity is the important thing variable; it determines how a lot borrowing energy a holder unlocks, and it units the gap to liquidation in a risky asset.

In apply: a holder with $10,000 in SOL can draw as much as $7,000 in USDC. Collateral is locked in a wise contract on-chain.

No compensation deadline applies, but when the LTV hits the liquidation threshold, which carries a 4.38% penalty, the place is auto-liquidated, and the remaining collateral is returned.

Borrowed USDC can’t be used for buying and selling on Coinbase straight.

Solana (SOL)
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Solana Price Momentum Makes the combination News Timing Deliberate, Breakout to $100 Soon?

SOL is sitting at $95.69 on the 4h chart, and the value motion since early May has been probably the most decisive upside transfer because the February collapse, with value breaking out of the $82 to $92 vary that had been containing it for weeks and pushing towards the $98 to $100 zone that has been the ceiling since January.

The construction of upper lows from the $77 backside in late February via March and April constructed a strong base, and the breakout that’s now unfolding has actual momentum behind it moderately than trying like one other fakeout.

The $94 degree is now the speedy help to look at on any pullback, as it marks the breakout zone from the prior vary. Holding that on a retest would verify the transfer is real and not only a wick into resistance.

Source: SOLUSD / Tradingview

Above the present value, $98 to $100 is the subsequent significant wall, and a clear break there opens the trail towards $106 and $110, the place heavier resistance sits from the January distribution.

What makes this transfer extra attention-grabbing than a mere technical breakout is the Coinbase lending information behind it.

SOL being added as the third main collateral tier after Bitcoin and Ethereum, alongside $2.3 billion in cumulative crypto-backed mortgage originations, means holders with unrealized positive aspects can now entry liquidity with out promoting, which structurally reduces promote stress whereas demand stays intact.

The long-term development restoration remains to be incomplete with value under its 200-day shifting common, however the brief and medium-term setup is probably the most constructive it has been all yr.

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The submit Solana News: Coinbase Just Added Solana as Loan Collateral Alongside Bitcoin and Ethereum: Is SOL Finally Getting Its Moment? appeared first on Cryptonews.

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