Coinbase Crypto Lending Faces Record Liquidations

Coinbase’s crypto lending product has experienced its highest liquidation levels since launch, following significant declines in Bitcoin and Ethereum prices this week. According to Dune data, total liquidation losses reached approximately $170 million over the past seven days, with a single-day liquidation of about $90.7 million on Thursday affecting around 2,000 users. The loans, executed through the DeFi platform Morpho, are typically over-collateralized. If collateral values drop another 50%, potential liquidation could reach $600 million.