Investment bank Compass Point has reiterated its 'Sell' rating and a target price of $140 for Coinbase. This assessment reflects a bleak market outlook, even though Coinbase recently received approval from the U.S. Commodity Futures Trading Commission (CFTC) to offer perpetual futures (Perps) services through its subsidiary, Deribit.

This is due to the intensifying fee competition as traditional financial and crypto companies, such as Kalshi, CME, Kraken, and Robinhood, successively announce their entry into the 24-hour perpetual futures market. Furthermore, while Q1 futures revenue ($50 million) increased, relatively high-margin retail spot revenue actually decreased, raising concerns about a 'cannibalization' effect where its own market share is being eroded.

In the long term, Compass Point projected that if large overseas exchanges like Binance also secure U.S. regulatory licenses under the pro-Trump administration's stance, Coinbase's market dominance and pricing power would take a significant hit.