Coinbase Crypto-Backed Loans See $170M Liquidations Amid Bitcoin, Ethereum Dips (COIN)

Coinbase’s crypto-backed lending via Morpho has seen record liquidations as Bitcoin and Ethereum plunged, with $170 million in collateral wiped in the past week, per Dune Analytics. Thursday alone accounted for $90.7 million to 2,000 users. The products, launched in 2023 and expanded to Ethereum, allow up to $5 million per customer and have originated $1.8 billion in loans. As Bitcoin fell 17% and Ethereum 26% in the week of February 6, 2026, over 3,300 users added or used Circle’s USDC to protect positions, while about 2,000 users faced liquidation. Loans are over-collateralized and include a buffer; the app notifies users every 30 minutes when at risk. Coinbase earns performance fees but does not receive proceeds from liquidations.