PANews reported on June 2nd that, according to Decrypt, Compass Point analysts reiterated their bearish rating on Coinbase with a price target of $140, warning that intense competition in the derivatives space will squeeze Coinbase's profit margins. The analysts pointed out that although Coinbase, through its subsidiary Deribit, has obtained regulatory approval to offer offshore crypto perpetual contracts to US users, the potential entry of Kalshi and Binance exacerbates the risks. Intense competition and low user switching costs limit Coinbase's pricing power relative to spot trading, especially among the high-net-worth users most likely to trade these products.

Coinbase's perpetual contract revenue reached $50 million in the first quarter, but its retail trading revenue fell to its lowest point since the third quarter of 2024, which analysts believe indicates signs of self-cannibalization within the company. Compass Point stated that the CFTC may approve Americans to trade on offshore platforms such as Hyperliquid or Binance in the future, posing a growing risk. Analysts also pointed out that the Trump family's connection with Binance through World Liberty Financial's USD1 stablecoin could increase Binance's chances of gaining access to the US market.