The Rise of On-Chain Derivatives: Hyperliquid Trading Volume Surpasses Coinbase, Indicating Market Signal

Hyperliquid surpasses Coinbase in nominal trading volume—according to Artemis data, this on-chain derivatives platform has achieved approximately $2.6 trillion in trading volume. In comparison, Coinbase’s volume stands at $1.4 trillion.

The market is not only focused on trading volume but also on capital flows. Since the beginning of the year, Hyperliquid’s token price has increased by 31.7%, while Coinbase’s stock price has fallen by 27.0%, creating a significant 58.7% gap between the two.

A New Milestone in Trading Landscape

The crypto world is witnessing a historic moment. An on-chain derivatives platform called Hyperliquid has overtaken the recognized US leading exchange Coinbase in nominal trading volume.

According to Artemis data, Hyperliquid recorded approximately $2.6 trillion in trading volume, nearly double Coinbase’s $1.4 trillion. This figure is not just a numerical surpassing but a signpost of structural change in the crypto industry. It clearly indicates that high-performance on-chain platforms are gradually capturing an increasing share of the global derivatives market.

Comparison of trading volumes: Coinbase vs. Hyperliquid. Data source: Artemis

Market Divergence Behind the Numbers

Behind the volume comparison lies a deeper market story. Let’s analyze this phenomenon from several dimensions.

The core data comparison clearly shows the comprehensive gap between the two:

• Trading volume: Hyperliquid at $2.6 trillion, Coinbase at $1.4 trillion, nearly twice as much
• Price performance: Since the start of the year, Hyperliquid up 31.7%, Coinbase down 27.0%
• Market confidence: Analysis indicates that liquidity, execution quality, and user activity are increasingly driving market valuation and investment narratives

Artemis analyst Anthony emphasizes that this divergence reflects a deeper structural shift rather than short-term market volatility. The importance of brand recognition is diminishing relatively, while the actual performance of underlying protocols and user experience are becoming new standards of value.

Technology-Driven On-Chain Advantages

Hyperliquid’s technological architecture is the foundation of its rapid rise. The platform is built on an order book model, utilizing its proprietary HyperBFT consensus mechanism to achieve sub-second transaction confirmation. This technical feature directly addresses the core needs of high-frequency traders and institutional investors for speed and certainty.

Launched in November last year, the HIP-3 growth model reduced maker fees in new perpetual contract markets by 90%, greatly incentivizing liquidity providers and traders.

Its technological edge is also reflected in ecosystem expansion. The launch of HyperEVM enables developers to build decentralized applications on Hyperliquid, enhancing interoperability with the Ethereum ecosystem.

Opportunities in the Era of On-Chain Derivatives

Hyperliquid’s success is no accident but a direct response to the growing demand for on-chain derivatives markets. The platform focuses on perpetual futures contracts, catering to investors’ leverage trading needs.

As blockchain performance improves and user experience advances, decentralized trading platforms are gradually eating into the market share of traditional centralized exchanges.

Industry data shows that although centralized exchanges still hold about 93% of the market share, the penetration of decentralized exchanges in specific product areas is increasing significantly. On-chain derivatives platforms attract traders who value transparency, permissionless access, and non-custodial trading environments, emphasizing fund autonomy and trading transparency.

Market Debates and Future Challenges

Hyperliquid’s rise has sparked strong reactions within the crypto community, highlighting the long-standing tension between centralized and decentralized trading models.

Some traders believe that transparent on-chain systems reduce counterparty risk and improve market fairness. However, supporters of centralized exchanges point out that they still dominate in fiat on/off ramps, regulatory integration, and retail accessibility.

It’s important to note that this does not mean centralized exchanges face direct competition. Coinbase, as a fully regulated publicly traded company, operates a fundamentally different business model from Hyperliquid, which is entirely on-chain. Coinbase focuses on spot trading and regulated markets, while Hyperliquid concentrates on on-chain derivatives trading.

Implications for Traders

For active traders, these market changes offer multiple insights. First, the criteria for choosing trading venues are shifting from a simple “centralized vs. decentralized” dichotomy to a comprehensive assessment of liquidity, speed, and reliability. Diversifying trading strategies by combining the liquidity and compliance advantages of centralized exchanges with the innovative products and transparency of decentralized platforms may be a more balanced approach.

Second, traders should pay attention to technological advancements. As interoperability solutions like HyperEVM mature, on-chain trading experiences and cost efficiencies will further improve.

Finally, the regulatory environment remains a key variable. While on-chain trading offers transparency advantages, the regulatory and fiat on/off ramp advantages of centralized exchanges are unlikely to be fully replaced in the short term.

Looking ahead to early 2026, the crypto market landscape remains anchored by Bitcoin’s $1.41 trillion market cap and 56.14% market share, solidifying its status as digital gold. Ethereum, as the leading smart contract platform, maintains a market cap of $252.82 billion.

In the exchange sector, as on-chain platforms rise and regulatory environments evolve, the market is undergoing structural adjustments. Diversified options and professional assessment are more important than ever. Whether it’s liquidity needs, specific asset trading, or emphasis on privacy and autonomy, the market now offers a variety of solutions. Emerging platforms challenge traditional players through technological innovation, while established giants reinforce their positions through compliance and security. This dynamic competition will ultimately drive the industry toward greater efficiency, transparency, and security.