Coinbase faces an uphill battle when it comes to derivatives as customers enjoy a growing number of ways to trade perpetual futures, according to analysts at Compass Point.

Amid depressed market conditions and competitors eyeing increased market share, Coinbase’s efforts to let customers speculate on digital assets using leverage will generate limited revenue growth, the investment bank’s analysts shared in a Monday note.

“Competition and low switching costs limit COIN’s ability to exert pricing power relative to spot trading, particularly among more sophisticated users that are most likely to trade these products,” they added, referring to perpetual futures, or perps.

Shares of the exchange were 2.6% lower at…