Best Altcoins to Buy as Coinbase Launches ETH-Backed Loans for U.S. Users

Borrowing against your crypto isn’t exactly a groundbreaking concept. From centralized lenders like SALT to DeFi giants like Aave, the option to unlock cash without selling your bags has been around for years.

It’s even become the default way for experienced investors to manage their portfolios without triggering taxable events – and Coinbase just took things to the next level by rolling out ETH-backed loans for U.S. customers.

They’ve been building toward this for a while, having already launched BTC-backed loans, but adding ETH to the mix moves this kind of collateralization further into the mainstream. The infrastructure of the crypto market is getting a serious upgrade.

We’ve looked at which projects could benefit from the news. If you’re tweaking your portfolio in anticipation of a market rebound, here’s our latest research on the four best altcoins to buy that could see some serious upside.

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Coinbase Launches ETH-Backed Loans – Why It Matters

Coinbase just launched a massive feature for eligible U.S. users: the ability to borrow USDC against ETH holdings. Unlike their old centralized lending products, this is a hybrid setup running directly on Base using the Morpho protocol.

You can access up to $1 million in liquidity with roughly 75% loan-to-value (LTV) – without selling any of your stack. That means you don’t have to trigger a taxable event just to free up some cash.

But why is this bullish for the broader crypto market? It’s mostly about supply dynamics. When big investors need cash for taxes or life expenses, they don’t have to dump their ETH on the open market anymore; they just lock it up in a smart contract, effectively taking that supply off the table.

Plus, it unlocks “rotation” capital for aggressive traders who want to keep their ETH exposure while borrowing USDC to bid on riskier assets. So, by smoothing out the friction between a CEX interface and DeFi infrastructure, Coinbase is basically aiming a firehose of liquidity at the altcoin market.

4 Best Altcoins to Buy as Coinbase Launches ETH-Backed Loans

With all that liquidity seeking a home, a few sectors look poised to benefit. Here are four altcoins that make sense in this new market structure:

1. Best Wallet Token (BEST)

While everyone else is busy chasing the next hot meme coin, smart money looks deeper into the infrastructure that powers the entire Web3 space. Best Wallet has already made a name for itself in this regard, with over 500,000 global users relying on its non-custodial, no-KYC wallet app.

Now, with the project’s native Best Wallet Token (BEST) presale storming past $17.2 million in raised capital, investors are betting on a utility play with a working product. BEST holders unlock reduced transaction fees and get access to the “Upcoming Tokens” launchpad, which showcases other carefully screened presales before they launch.

Plus, early buyers can earn a massive 76% APY via staking while the presale is ongoing. And the team is even rolling out a “Best Card” to let users spend their crypto like fiat.

With the presale ending in less than a week, the window to grab BEST at the $0.025975 pre-listing price is shutting fast. This could be one of the best altcoins to buy before supply-and-demand dynamics kick in.

2. Ethereum (ETH)

It might seem a little obvious to list the asset that’s powering these loans, but Ethereum (ETH) is arguably the biggest winner here. By allowing users to borrow against their holdings, Coinbase effectively removes supply from the open market, as every loan taken is ETH that isn’t being sold.

This system creates a “soft supply shock.” Instead of dumping ETH during volatility, investors can just access liquidity tax-free and sit tight. It limits ETH’s circulating supply.

Plus, because the system runs on Base using Morpho vaults, it drives volume back to Ethereum’s Layer-2 ecosystem. If you want exposure to the asset becoming the collateral of the crypto economy, ETH is one of the safest plays on the board.

3. Bitcoin Hyper (HYPER)

Bitcoin is just too slow for anything beyond HODLing, with only 3-7 transactions per second (TPS). That’s exactly the bottleneck Bitcoin Hyper (HYPER) is solving. It’s a Layer-2 network that grafts the speed of the Solana Virtual Machine (SVM) onto Bitcoin’s blockchain.

That setup lets you enjoy Solana’s high-speed execution while staying anchored to the most secure chain globally. And the downstream impact of that is DeFi, meme coin trading, and tokenized RWAs, all backed by Bitcoin.

Smart money is already positioning behind this “Bitcoin DeFi” narrative, which is why the HYPER presale has surged past $28.2 million. There’s even been some huge whale investments – most notably, a $500,000 buy earlier this month.

Plus, with a staking APY currently sitting at 41%, HYPER (priced at $0.013305 for now) is an attractive place to park liquidity while waiting for the mainnet launch. It could be another of the best altcoins to buy for anyone looking to capitalize on the Bitcoin scaling narrative.

4. Ethena (ENA)

Ethena (ENA) isn’t a traditional stablecoin; it’s a synthetic dollar protocol that maintains its peg through delta-neutral hedging. That strategy allows it to generate yield from funding rates that frequently hit double digits.

The connection to Coinbase’s new loan product is direct. Traders can now borrow USDC from Coinbase, use it to mint Ethena’s USDe, and stake it to capture yield. It’s a textbook arbitrage loop: borrow at a lower cost, earn a higher return.

If this “loan recycling” strategy gains traction, the circulating supply of USDe could grow rapidly. So, for investors looking to bet on institutional DeFi adoption, ENA is an excellent option.