Key Features of the New Service
Eligible customers can now borrow up to $1 million in USDC using ETH as collateral. This innovative service offers a tax-efficient way to access liquidity without the need to sell Ether, thereby avoiding potential capital gains taxes. Since its inception, the service has processed over $1.25 billion in loan origination volume by November 2025.
Coinbase's Strategic Move into DeFi Lending
Coinbase has launched an on-chain lending feature that allows users to secure USDC loans of up to $1 million by using Ether as collateral. This service is integrated through the Morpho protocol on the Base network. This development is a significant step in enhancing liquidity options for cryptocurrency holders, enabling them to access funds without liquidating their existing assets. It underscores a broader trend towards secure, collateralized Decentralized Finance (DeFi) solutions within the rapidly expanding blockchain lending sector.
Market Reactions and Industry Impact
Market reactions to Coinbase's new ETH-backed lending service have been predominantly positive. While no formal statements have been issued by Coinbase executives regarding this specific launch, the company's broader on-chain lending products have already processed over $1.25 billion in loan origination volume, indicating the significant impact of such initiatives. This new service, communicated through Coinbase's official channels and its Bytes newsletter, signifies a strategic move towards making crypto lending more accessible and transparent through DeFi protocols. To date, there have been no publicly recorded reactions from prominent figures in the crypto industry or regulatory responses from institutions like the SEC.
Ethereum Market Analysis
As of November 21, 2025, Ethereum (ETH) is trading at $2,796.62, with a market capitalization of $337.54 billion. Its 24-hour trading volume stands at $44.17 billion, reflecting a 7.48% increase. The cryptocurrency's performance over the last 90 days shows a decrease of 40.68%, illustrating the ongoing market volatility.
The Coincu research team projects that the introduction of ETH-backed loans could significantly boost market accessibility. This aligns with the growing interest in regulatory-compliant DeFi solutions and may further solidify Ethereum's position as a foundational component in mainstream financial integrations, leveraging its underlying technological strengths and market dominance.
DeFi Expansion and Market Trends
In the third quarter of 2025, DeFi captured 66.9% of the crypto-collateralized lending market share. This represents a notable shift away from previous models that relied heavily on uncollateralized lending.
As of November 21, 2025, Ethereum's (ETH) price is $2,796.62, with a market cap of $337.54 billion. Its 24-hour trading volume is $44.17 billion, marking a 7.48% change. Ethereum's 90-day performance shows a decrease of 40.68%, reflecting ongoing market volatility.
The Coincu research team anticipates that the launch of ETH-backed loans could enhance market accessibility and align with the increasing demand for regulatory-compliant DeFi solutions. This initiative is expected to further position Ethereum as a key element in mainstream financial integrations, capitalizing on its robust technological infrastructure and significant market presence.