Hyperliquid, a decentralized perpetual futures exchange, has quietly overtaken Coinbase in total notional trading volume, marking a major shift in how crypto traders are choosing to trade.
According to data shared on Feb. 10 by on-chain analytics platform Artemis, Hyperliquid processed about $2.6 trillion in notional trading volume in 2025. Coinbase, one of the world’s largest centralized exchanges, recorded around $1.4 trillion over the same period.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
