Coinbase lets XRP, ADA and dogecoin holders borrow up to $100,000 without selling

TL;DR:

The exchange is widening access to its Morpho-powered lending product after a wave of liquidations earlier this month, giving holders of major retail tokens a way to borrow USDC without selling.

Key Points:

Background:

Cryptocurrency liquidations occur when leveraged trading positions are automatically closed by exchanges due to insufficient margin. Large-scale liquidation events, often called liquidation cascades, can trigger dramatic price movements as positions are forcefully sold or bought back.

Why It Matters:

Liquidation events reveal the extent of leveraged positions in the market and can cause or accelerate significant price volatility. Understanding liquidation dynamics helps traders assess market risk and potential volatility triggers in cryptocurrency markets.