Hyperliquid Darts Past Coinbase in 2025: On-Chain Derivatives Surge

by

Hyperliquid, the on-chain darling of perpetual futures, has quietly leapfrogged Coinbase in total notional trading volume. Translation: crypto traders are embracing the new kid who does math with fewer middlemen and more caffeine.

one side has fewer lockers and more drama, and somehow still ends up lifting more.

Despite Hyperliquid (HYPE) launching only a few years ago and running entirely on-chain, the numbers show that it handled almost twice Coinbase’s trading volume. The milestone has drawn attention across the crypto industry, especially as decentralized platforms continue to challenge traditional exchanges. If this were a TV season, this would be the cliffhanger where everyone realizes the plot twist was liquidity all along.

How hyperliquid built its lead

Hyperliquid primarily focuses on trading perpetual futures and derivatives on its proprietary Layer 1 blockchain. Active traders seeking quick execution, cheap fees, and direct access to on-chain liquidity have been drawn to it thanks to its focused approach. It’s basically the streamlined, no-nonsense co-worker who makes the rest of the office look inefficient.

The platform grew quickly throughout 2025. Daily trading occasionally increased to close to $30 billion, while monthly volumes frequently reached hundreds of billions of dollars. The total value locked increased toward $6 billion, while open interest peaked at about $16 billion.

BREAKING: Hyperliquid is quietly outgrowing Coinbase.

Trading Volume (Notional):

• Coinbase: $1.4T
• Hyperliquid: $2.6T

That’s nearly 2x Coinbase’s volume… from an onchain exchange. And the market is noticing.

YTD Price Performance:

• Hyperliquid: +31.7%
• Coinbase:…

– Artemis (@artemis) February 9, 2026

User growth also accelerated. The platform’s active user base grew from about 300,000 to more than 1.4 million in a year, driven largely by word-of-mouth and product performance rather than heavy marketing. It’s the kind of growth that makes HR ask if the product has a pulse, but with crypto, the pulse is neon and on-chain.

Fees collected on Hyperliquid are partly used for HYPE token buybacks and burns. This model has helped support long-term interest in the ecosystem. As of early 2026, HYPE is up roughly 31.7% on the year and continues to draw increasing attention from traders. It’s the financial equivalent of a hype train that actually delivers snacks at the station.

Coinbase operates very differently. Its higher fees, stricter compliance requirements, and fully centralized model for spot and derivatives trading still make it a key entry point for retail users. However, professional traders are increasingly turning their focus toward alternatives that offer more flexibility and lower costs. It’s like choosing a DJ who plays the hits versus the venue that keeps losing your keys to the safe.

Coinbase stock is down about 27.0% so far this year, showing how much pressure traditional crypto companies are under in the current market slowdown. If the market were a reality show, Coinbase would be the season-long confession booth with worse ratings than the prop wardrobe.

What this shift means for crypto trading

The growing gap between Hyperliquid and Coinbase reflects a change in how users trade. On-chain platforms offer speed and transparency without requiring users to hand over custody, and more traders are getting comfortable using them. It’s like moving from pigeon-mail to instant memes on a blockchain-sized group chat.

With Hyperliquid, derivatives traders do not need to trust a central operator with their funds. Smart contracts are used to manage risk, and trades settle on-chain. Users who have been wary of exchanges in the past will find this appealing.

At the same time, Hyperliquid has placed a strong emphasis on user experience. Its user interface is similar to that of large centralized platforms, which makes it easier for new users to get started. Its growth has largely been attributed to this combination of usability and decentralization. It’s the good-looking friend who can actually do the improv, not just tell you to “trust the process.”

Momentum has also been boosted by recent developments. The platform is being used to test new products such as outcome-based contracts and limited-risk options. Notable industry figures, like Arthur Hayes, who recently increased the size of his own HYPE holdings, have also taken notice of it. It’s the kind of buzz you hear in a coffee shop that means a product might be onto something, or at least caffeine-fueled gossip.

But there are still issues. Competition in decentralized derivatives is increasing, and regulators are paying more attention to on-chain trading activity. Aster and Lighter, two rivals, are also expanding their product lines. It’s the crypto world’s version of a rival TV network strengthening its primetime lineup just as the ratings get spicy.

Read More

2026-02-10 08:36