Our weekly crypto derivatives analytics report delves into macro events; the current state of crypto and trading signals from spot trading volume; and futures, options and perpetual contracts.

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Discover how DAI evolved into USDS under the Sky protocol—unlocking passive rewards, scalability, and a new era of DeFi with Sky Token Rewards.

In September 2024, MakerDAO, a pioneering 

 (DeFi) protocol, underwent a significant transformation by rebranding itself as 

 (SKY). This rebranding was part of the project's comprehensive strategy to enhance scalability, user engagement and regulatory compliance. The major changes that came with the rebranding include token upgrades, whereby the platform’s stablecoin, Dai, was upgraded to USDS (Sky Dollar) while the 

Let’s take a deeper look at USDS and its role on the Sky platform.

USDS (United States Dollar Sky) is the upgraded version of the Dai stablecoin, launched under the newly rebranded Sky protocol (formerly MakerDAO).

 Like DAI, USDS is a decentralized, overcollateralized stablecoin designed to maintain a 1:1 peg with the US dollar.

However, USDS significantly improves scalability, user incentives and regulatory positioning, making it a next-generation solution for DeFi.

One of the standout features of USDS as a stablecoin is that it creates 

 opportunities for its investors. With USDS, you can access the Sky Savings Rate (SSR) feature, which allows you to participate in the Sky ecosystem's governance by accumulating Sky Token Rewards (STR) (presented in the form of SKY tokens).

SSR also features a variable automated token accumulation feature, whereby you receive 

 to the SSR program. This passive earning potential offers a major advantage for users seeking yield without complicated 

Sky uses a dynamic model that adds USDS to the SSR pool every few seconds. Over time, the value of sUSDS in the particular pool increases. You can then opt to redeem your sUSDS for USDS, and receive the USDS you initially supplied in addition to the USDS equivalent you’ve accumulated.

These rewards serve as an incentive mechanism, enabling users to passively grow their holdings while supporting the health and stability of the Sky ecosystem.

Upgrading from DAI to USDS is straightforward. Users can visit Sky.money and initiate the upgrade directly through a noncustodial, user-controlled process.

The platform provides a simple interface on which users connect their wallets, exchange their existing DAI for an equal amount of USDS and instantly become eligible for yield accumulation and other Sky ecosystem benefits. There are no fees for the upgrade, and users retain full control of their assets at all times.

USDS isn’t just a stablecoin; it’s an evolution of DeFi money. With passive earning through Sky Token Rewards and a smooth, secure upgrade path, USDS sets a new standard for the way decentralized stablecoins can deliver value and financial empowerment to users worldwide.

USDS and DAI are both decentralized stablecoins originally developed under the MakerDAO ecosystem (now Sky). While they share the same core principle — overcollateralization and the maintenance of a 1:1 peg with the US dollar — USDS represents a major evolution of DAI, introducing additional incentives designed to enhance user experience, scalability and regulatory alignment.

DAI has long been a favorite in the DeFi ecosystem, allowing users to generate stablecoins by locking up crypto collateral such as 

. DAI features a savings program, the DAI Savings Rate (DSR), from which people can earn 

 (sDAI). While the DSR program is still running, upgrading to USDS lets you earn two types of rewards through the SSR program: sUSDS tokens and Sky Token Rewards (STRs).

In addition, USDS is well positioned to meet regulatory requirements, aiming for broader mainstream adoption while maintaining decentralization.

Below is a comparison table between DAI and USDS:

USDS is backed by collateral that’s deposited in Sky vaults by borrowers. In return, the reserves for these vaults are backed by three main assets: 

With a market cap of over $8 billion, USDS is the currently third-largest stablecoin after 

 is more complex than that of typical stablecoins, as it includes liquidation mechanisms and a peg-stability module. However, an audit of USDS’s smart contract in September 2024 didn’t report any significant risks with the stablecoin. Notably, S&P Global Ratings 

 of 4 out of 5, indicating constrained ability to maintain its peg under certain conditions. 

​Additionally, the proposal to include a freeze function for USDS, which bestows upon the Sky protocol the power to halt USDS transfers between wallets, has sparked heated discussions within the community, highlighting the ongoing conundrum of balancing security measures with principles of decentralization.

The evolution of DAI to USDS marks a major leap forward for DeFi. By combining DAI's trusted and overcollateralized model with additional passive earning opportunities through Sky Token Rewards, USDS empowers users to enjoy greater financial benefits with less complexity.

The streamlined upgrade process and stronger regulatory positioning set the stage for broader adoption and a more resilient future. As Sky continues to build, USDS represents more than just a stablecoin — it’s the foundation of an open, accessible and more rewarding financial ecosystem for everyone.

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From DAI to USDS: Unlocking an open Sky for a more rewarding future

Altcoins

web3

Filecoin is a decentralized protocol cloud storage with competitors such as Google drive. But does it is a reliable protocol and cryptocurrency? Learn more.

Global file sharing and storage are areas marked by constant innovations. One such innovation is the introduction of Filecoin. You might be asking yourself what Filecoin is. The best way to describe it is as a global decentralized storage system that brings benefits for all participating computer operators. 

With Filecoin, all the data is stored on a peer-to-peer blockchain. Simply put, the Filecoin network is maintained by:

As the Filecoin network continues to expand (with more miners supplying storage space, and more users placing their trust in it with their data), the value of the underlying cryptocurrency, FIL, is likely to increase. This is because the number of transactions requiring that digital currency will grow. In case enough people adopt Filecoin, it may turn into the fastest and least expensive way to store data on the web. 

As if that’s not enough, the total amount of FIL that will ever be generated is limited to 2 billion tokens, another reason for its value to increase.

The cryptocurrency FIL is the underlying token that powers the Filecoin network. It is used to pay for data storage, data retrieval and any other transactions that may occur within the network.

Since that network does not depend on a centralized server, the data stored on the blockchain cannot be subject to hacker attacks (unlike centralized storage providers). In addition, no government or other body will have the authority to censor file exchange. 

Since all files are broken down into smaller parts by the Filecoin blockchain before being sent to the miners for storage, the security of contents is guaranteed.

The Filecoin network is established on top of the Interplanetary File System (IPFS), 

 a protocol ensuring file storage and sharing in a distributed network (with the process being very similar to file-sharing networks such as RuTracker.org or BitTorrent). While the IPFS is free to use and does not generate revenue for miners, the Filecoin network is paid-for-use and generates revenue. 

In order to ensure data storage and data retrieval on the network, Filecoin miners rent out unused storage space to clients and get paid in FIL.

The two types of miners operate within the network are:

Other participants in the network include the so-called “clients.” They use the network to look for a storage miner or a retrieval miner who best suits their needs (price, storage capacity and duration). Once a miner is selected and a final agreement is reached, the “deal” is then added to the blockchain.

We should note that, along with Filecoin, other protocols offer cryptocurrency-powered, decentralized storage and file-sharing systems. These include Siacoin, which already has a 2-petabyte network capacity, and Storj, which already has a more-than100 petabyte network capacity.

Being open-source software, Filecoin was developed by Protocol Labs, a company established by computer scientist Juan Benet. Protocol Labs is also the company behind technologies such as IPFS and libp2p, which aim to replace existing Internet protocols. 

Juan Benet also was the co-founder of the game development firm Loki Studios, while he was studying computer science at Stanford. In 2013, Yahoo acquired Loki Studios. Juan Benet then took part in the Y Combinator start-up accelerator to establish Protocol Labs. 

Filecoin’s initial coin offering (ICO), which took place in August and September 2017, raised $257 million, the largest ICO on record at that time. Protocol Labs was backed by investors such as Digital Currency Group, Coinbase co-founder Fred Ehrsam, Stanford University’s startup accelerator StartX, and AngelList founder Naval Ravikant. 

After the ICO, in October 2020, the Filecoin 

 was launched, while as of November 2020 the Filecoin network already had a storage capacity of more than 1 

, since more than 70 organizations working in collaboration with Filecoin.

Users or clients within the Filecoin network, who are willing to store data on that network, have to locate and pay miners who will do it for them. An open market will usually determine the price miners will compete to ask the lowest price for the storage service, which means Filecoin is likely to be much cheaper than centralized data storage providers such as 

Meanwhile, there is an incentive for miners to provide storage capacity. The Filecoin network will reward them with Filecoin tokens. In other words, the more storage miners make available for the network, the higher the chances are for them to be rewarded. 

Yet, miners are required to execute a few computationally intensive processes, or proofs, to show the network that they are storing the data and are doing so reliably over time. If that is the case, miners will add new blocks to the Filecoin blockchain and receive the reward.

As we’ve already noted, miners are participants who provide storage. Every computer user is able to plug in his/her hard disk drive (HDD), run the Filecoin software and begin providing HDD space in the Storage Market. These miners are the so-called Storage Miners. There are also Retrieval Miners, who are paid by clients to retrieve data and to perform services that aim to accelerate data transmission (for example, caching).

The Filecoin network has a market for HDD storage, where users/clients looking to store data are able to bid for available storage that is provided by miners. The latter will be assessed based on their reliability and the prices they ask for HDD storage. It is a market, since participants are able to place bids and ask prices.

The Filecoin blockchain relies on two mechanisms, or proofs, which help the network verify that miners store the data they claim to hold. 

These two proofs allow other participants to assess whether miners are trustworthy or not.

The Proof-of-Replication indicates that miners have stored the number of copies of data they claim to hold.

The second mechanism, Proof-of-Spacetime, indicates that miners have stored the data over an agreed time period.

Participants within the Filecoin ecosystem communicate through secure channels, which they use to gossip (distribute information to the network), transfer information among themselves, and locate other peers.

Filecoin clients (also known as Filecoin Nodes) synchronize the Filecoin blockchain and verify each block’s messages. Clients can manage Filecoin wallets to store FIL and make payments in that cryptocurrency. They can also propose storage and retrieval deals to miners within the network and pay for the service as the deals are executed. 

Filecoin clients are also able to publish and broadcast different messages across the network. One such message, for instance, could be an instruction to send FIL from one address to another.

Although Filecoin shares some similar properties with other file storage and distribution systems such as Google Cloud Storage, there are also distinct differences between the two technologies. Let us point out some of them. 

First, Filecoin pricing is determined by a hypercompetitive open market, while Google Cloud pricing is determined by specialized corporate departments. 

Second, the Filecoin network features a multitude of small, independent storage providers, while Google Cloud comprises several large corporate entities.

 Third, there is a low barrier to becoming a storage provider with Filecoin (one needs a PC, an HDD and a reliable Internet connection). In the case of Google Cloud, the barrier for storage providers is quite high (it includes legal agreements, marketing and support staff).

Additionally, Filecoin miners are located anywhere on the globe, while in the case of Google Cloud, the physical location is limited to where the provider’s data centers are positioned.

When it comes to reliability statistics, Filecoin performance is independently checked by the network and publicly verifiable. With Google Cloud, corporate entities self-report their own stats.

Another difference of note is that the Filecoin network has a competitive market for file retrieval. With Google Cloud, retrieval is usually more expensive than file storage.

Last but not least, in case a file is lost, the user will be refunded automatically by the Filecoin network. With Google Cloud, users will be offered credit by companies in the event of a fire loss or unavailability.

Filecoin is dependent on two mechanisms: proof of replication and spacetime. This assures that its network consists of miners providing a fundamentally useful service, namely HDD storage. 

Additionally, Filecoin creators assure that its storage market will allow users to take advantage of more competitive prices than those offered by centralized storage (cloud) providers such as AWS, HPE and so on. 

If the Filecoin network achieves its objective of providing a decentralized storage service, which will not be easily influenced by governments or corporate entities, its user base will surely grow. This growth may accelerate further if centralized services start losing their clients’ trust. As a result, the value of the FIL token could rise.

And, as we noted earlier in the article since the total amount of FIL that will ever be available is limited, the token’s value is very likely to increase.

As with other financial assets, there must be a good reason which warrants an investment in FIL. If you believe that customers’ trust in centralized storage providers could be undermined, then you may consider investing in cryptocurrency. 

Large centralized providers such as Google or Amazon may face pressure from governments or business entities to change, remove, or simply disallow services to particular users. If they indeed do so, this could jeopardize their trustworthiness, which would then benefit decentralized storage services such as Filecoin. 

Another reason to consider an investment in FIL: its marketplace is meant to offer much more competitive prices than those of existing storage providers. The creators of Filecoin state that a huge proportion of global HDD space is currently unused. If the Filecoin network is able to unlock that unused space via cryptography and financial incentives, this could result in even lower storage prices.

In conclusion, Filecoin may be the answer to a number of inefficiencies surrounding global data storage and retrieval. But even more, it allows clients the freedom of choice, making them less dependent on contracts with huge storage providers such as Amazon Web Services, Dell or HPE. In this way, Filecoin may contribute to a more competitive cloud storage market.

The success of the Filecoin network will likely depend on its popularity and usage within the cryptocurrency community, as well as whether it will be able to lure new users to the Web 3.0 field.

What Is Filecoin (FIL): A Decentralized Storage Solution for All?

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