Hyperliquid, an on-chain derivatives platform, overtakes Coinbase, the American cryptocurrency exchange, in notional trading volume, igniting questions of where trading actually happens.
On-chain advantages overtake CEXs
According to on-chain analytics platform Artemis, Hyperliquid recorded roughly $2.6 trillion in notional trading volume, nearly double the activity compared to $1.4 trillion for Coinbase. This could suggest that the real traders are moving on-chain, especially for perpetual volume that was previously considered a product of centralized exchange.
Hyperliquid gained 31.7%, while Coinbase shares have fallen 27%, creating a gap of more than 58 percent in just weeks.
Why is Hyperliquid having a huge volume of notional trading?
Hyperliquid has capitalized on the massive growth of perpetual futures, a major product of investment for risk-seeking investors. According to a CoinGlass comparison of perpetual decentralized exchanges (DEXs), reported trading volume alone is an unreliable metric for measuring genuine market activity.
According to CoinGecko data, the DEX remains the largest perpetual DEX in both 24-hour trading volume, exceeding $6.5 billion, and 24-hour open interest. Total volume across all perpetual DEXs reached $22.6 billion. The numbers reflect the operational efficiency of Hyperliquid’s revenue model.
However, Hyperliquid distinguished itself with high trading volumes backed by equally high open interest and frequent liquidations, proof that traders are not simply boosting volumes with trades but also holding positions and taking real market risks.
The DEX also takes significantly lower taker/maker fees compared to Coinbase’s retail tiers. This makes it an additional advantage for both buyers and sellers.
DeFi defined by Self-custody and speed
Hyperliquid’s custody is user control with smart contracts, which gives users more privacy. Alongside, they also ensured speed and sufficient depth of liquidity. While Coinbase is one of the most recognized crypto exchanges globally, the thick blanket of compliance controls the exposure to high-leverage derivatives. If regulation tightens, CEXs lose their edge to DEXs.
Binance’s report called Hyperliquid “a blueprint for the future of trading” while calling on CEXs to be more built over their marketing techniques and “bureaucracy.” The milestone is also an indication of a broader upgrade in decentralized finance technology.
