• Analysts remained divided on the impact of the perps market competition on HYPE. 
• Short-term caution was evident, though, and HYPE could fluctuate between $30-$40. 

Hyperliquid’s [HYPE] remarkable growth could face headwinds in the summer ahead of incoming competition in crypto perpetual markets. 

During the Q2 recovery, Hyperliquid activity surged and lifted HYPE up 183%, eclipsing even Bitcoin’s [BTC] 30%. 

But this momentum may face fresh turbulence as Coinbase unveiled Futures perpetuals scheduled on the 21st of July. In fact, it directly targets the derivatives sector that Hyperliquid currently thrives in.

“You asked for it, we built it”

Coinbase CEO Brian Armstrong’s tweet echoed the exchange’s big leap.

The exchange will offer nano Bitcoin (0.01 BTC) and nano Ethereum [ETH] (0.10 ETH) perpetual-style futures, which are fully CFTC-compliant and designed to close the long-standing domestic gap in crypto derivatives access.

The contracts won’t have fixed expiries but will include hourly Funding Rates and long-dated expirations.

The move challenges offshore dominance and puts pressure on Hyperliquid, whose no-KYC, high-leverage edge Coinbase now aims to replicate—legally.

Will Coinbase eat Hyperliquid’s lunch?

Hyperliquid DEX debuted last year, but already commands $2.78 billion in BTC’s Open Interest (OI). This is the fourth largest after Binance, Bybit, and OKX. 

But Coinbase’s move has elicited a mixed outlook for the DEX’s mid-term moat. According to Messari analyst Troy Harris, 

“Coinbase perps is net bearish for Hyperliquid. Given the choices of HYPE, COIN, or HOOD, I am going HOOD.”

BitMEX Founder, Arthur Hayes, also had similar reservations. In a recent interview, Hayes said that about 30K Hyperliquid users could opt for ‘easier’ Coinbase or Robinhood alternatives. 

However, others argued that Coinbase perps traders will eventually migrate to Hyperliquid, citing low fees and non-KYC. 

Whales are watching, and they’re not waiting

Despite the mixed takes, whales’ interest in HYPE was still solid. Two institutional whales, Galaxy Digital and Manifold Trading, deposited nearly $50 million and began buying HYPE.

While sustained interest from large players could bode well for HYPE’s price prospects, the market was somewhat cautious in the short term.

Santiment data confirmed a negative-to-neutral Weighted Sentiment for HYPE since the 20th of June. Even with the whale accumulation, broader retail confidence remained fragile.

Meanwhile, CoinGlass’ 7-day Liquidation Heatmap marked $33, $35, and $39.6 as key liquidity magnets.

Current price action sat close to both ends of the liquidity spectrum, leaving HYPE exposed to a tug-of-war between whale strength and market hesitation.

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