Coinbase’s New Perpetual Futures Challenge Hyperliquid’s Dominance

In a strategic move set to shake the foundations of the cryptocurrency derivatives market, Coinbase has announced the launch of its own perpetual futures products, scheduled for release on July 21, 2025. This initiative directly targets the thriving market segment currently dominated by Hyperliquid, a decentralized exchange (DEX) that has rapidly gained traction since its debut last year. Coinbase's foray into this space raises significant questions about the future of Hyperliquid and the dynamics of the crypto trading landscape.

Hyperliquid's token, HYPE, has seen impressive growth, skyrocketing 183% in the second quarter of 2025, outpacing Bitcoin's own 30% increase. However, with Coinbase’s entry into the market, analysts have expressed concerns about the sustainability of HYPE's momentum. "The introduction of Coinbase's futures products could be net bearish for Hyperliquid," stated Troy Harris, an analyst at Messari, emphasizing that users may gravitate towards Coinbase or Robinhood due to perceived ease of access and reliability.

Coinbase's CEO, Brian Armstrong, articulated the company's aim when he tweeted, "You asked for it, we built it," signaling a robust commitment to enhancing the domestic crypto derivatives landscape. The new offerings will feature nano Bitcoin (0.01 BTC) and nano Ethereum (0.10 ETH) perpetual futures, designed to be fully compliant with U.S. Commodity Futures Trading Commission (CFTC) regulations. Unlike traditional futures contracts, these will not have fixed expiries and will incorporate hourly funding rates, thus appealing to a broader range of traders.

Despite the mixed expert opinions on the short-term implications for Hyperliquid, the DEX still commands considerable interest from institutional investors. Notably, Galaxy Digital and Manifold Trading have reportedly deposited nearly $50 million to acquire HYPE, indicating sustained confidence from large players in the market. However, market sentiment remains cautious, with data from Santiment showing a shift towards a negative-to-neutral weighted sentiment for HYPE since June 20.

CoinGlass's 7-day Liquidation Heatmap has identified key liquidity levels at $33, $35, and $39.6, suggesting that HYPE's price may experience volatility as it navigates between these points. As the market braces for Coinbase’s entry, the critical question remains whether Hyperliquid can maintain its competitive edge amidst the increased pressure from a major exchange.

In summary, while Coinbase's new perpetual futures products could catalyze changes in trading behavior, the long-term impact on Hyperliquid will depend on user preferences and the overall competitive landscape within the crypto derivatives market. As the situation unfolds, stakeholders will be closely monitoring trading trends and price movements to gauge the future direction of both Coinbase and Hyperliquid in this increasingly competitive arena.