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Ahmed Barakat
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Coinbase added Solana as collateral for its crypto-backed lending service, allowing US users to borrow up to $100,000 in USDC against their SOL holdings. Bullish news for Solana.
The merger was on May 12, confirming that SOL is joining Bitcoin and Ethereum as an acceptable collateral for Coinbase’s non-custodial loan product built on the Morpho protocol on Base.
The maximum interest rate for SOL is set at 70%. That number is a big change; it determines the amount of rental power that the owner unlocks, and it sets the distance to be cleared in the unsustainable property.
In practice: someone with $10,000 in SOL can get up to $7,000 in USDC. The bond is locked in a smart contract on the chain.
There is no repayment period in effect, but if the LTV hits the limit, which has a penalty of 4.38%, the property is withdrawn, and the remaining collateral is returned.
Borrowed USDC cannot be used to trade on Coinbase directly.
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Solana Price Momentum Makes News Time Consolidation Intentional, Breakout to $100 Soon?
SOL has been at $95.69 on the 4h chart, and its price since the beginning of May has been very volatile since the fall of February, and the price has dropped from $82 to $92 that it has had for several weeks and pushed to the $98 to $100 zone that has been the ceiling since January.
The low formation from below $77 at the end of February through March and April built a solid foundation, and the explosion that is happening now has real interest behind it instead of looking like another trick.
The $94 level is now an immediate support to watch for any pullbacks, as it shows a break point from the previous highs. Keeping that in the retest can confirm that the move is real and not just put a string of resistance.
Above the current price, $ 98 to $ 100 is the next meaningful wall, and that clean break opens the way to $ 106 and $ 110, where the main resistance is from the distribution of January.
What makes this move more interesting than just a technological breakthrough is Coinbase’s lending story behind it.
SOL is being added as the third largest collateral after Bitcoin and Ethereum, along with $2.3 billion in crypto-backed lending, means that those with unrealized profits can get money to buy without selling, which reduces the speed of trading while demand remains.
The long-term recovery remains incomplete with the price below its 200-day moving average, but the short-term and medium-term recovery is the strongest it has been all year.
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