Jan 6, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Markets Snap Five-Day Loss Streak 

Investors are now seizing the opportunity to buy the dip in U.S. stocks after a five-day decline that erased over $1 trillion in market value. Wall Street has broken its longest losing streak since April, with the Nasdaq-100 rebounding 1.7% and the S&P 500 rising 1.3% on Friday, January 3. These gains slightly offset the week's sell-off, which had continued into the new year following a tough December.

Despite concerns about slowing earnings growth among tech giants like the Magnificent Seven, traders remain optimistic, especially regarding AI leader NVIDIA Corporation. The market believes that, as long as retail investors keep investing in AI, the associated stock market boom is expected to persist. 

Stocks reached their session highs in the afternoon after Mike Johnson was reelected as speaker of the U.S. House of Representatives, indicating potential support for a business-friendly agenda. Meanwhile, bond yields rose, with the 10-year hitting 4.6% following comments from Richmond Fed President Tom Barkin about maintaining restrictive rates. U.S. manufacturing showed modest growth, with new orders at their highest since early last year, while investors assessed economic strength against the possibility of slower interest-rate cuts.

Weekly Crypto Highlight — AI Agent Spring Coming

Many investors are eagerly anticipating an Alt Season, a period when altcoins typically surge in value. However, current market dynamics suggest we may not see a widespread altcoin rally. The sheer number of tokens, combined with limited liquidity, has led to what's known as altcoin dispersion, making it crucial to select the right sectors and tokens.

, which are thriving even as the broader market declines. This nascent sector is experiencing rapid advancements, and its associated tokens face less pressure from venture capital unlocks. Many of its top protocols lack centralized exchange listings, indicating more buyers may enter the market.

Those investors who missed previous opportunities, such as the DeFi summer of 2020 and the Alt Layer 1 trade, now have another chance. Instead of targeting individual AI agents, the best risk/reward strategy lies in investing in infrastructure plays, which serve as the foundational tools for the sector.

The leading AI agent player is Virtuals Protocol, a platform for launching tokenized AI agents on the Base network. By purchasing tokens like Luna by Virtuals (LUNA) and VaderAI (VADER), users gain governance rights over specific agents, which allows them to both influence development and share in profits. 

Recently, daily protocol fee revenues dropped significantly in mid-December 2024 as activity slowed for the holidays. However, speculation around agent-associated tokens surged as the new year approached. Currently, Virtuals Protocol generates over $1 million in daily fees, though this is 50% less than figures for early December. Despite these challenges, the VIRTUAL token has more than doubled in value, reaching a market capitalization of $4.6 billion.

Other highlighted opportunities include Zerebro, which is pivoting to a full-stack framework for AI agents; ARC, with its Rust-based framework; and 

 (GRIFFAIN), a natural language on-chain search tool. These projects are well-positioned for future growth in the evolving landscape of AI technology.

 as we delve into leading AI agent tokens and the past week’s market movements. 

Advanced

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Weekly Institutional Insights: Market Snaps Five-Day Loss Streak; AI Agent Spring Coming

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.

December's end-of-year options expiration brought an unexpected drop as realized volatility fell to the lowest levels of the month. Perpetual swap open interest remained stable, indicating these markets weren't heavily used for hedging against expired options, likely contributing to the muted volatility. 

While most expired open interest in Bitcoin (BTC) and Ethereum (ETH) hasn't been reinvested, the balance of calls and puts remains consistent. Notably, ETH options are pricing in higher implied volatility as compared to BTC, particularly for shorter expirations, leading to a flat term structure for ETH, while BTC is offering cheaper options exposure.

In the perpetual markets, low volatility and minimal spot movements have led funding rates for nearly all tokens to mirror broader market sentiment throughout the holiday season. On the options side, BTC's term structure is noticeably lower and steeper than ETH's, with realized volatility now dipping below implied volatility levels, highlighting an intriguing shift in market dynamics.

Please check out the report’s highlights.

Open Interest Solid Amid Year-End Options Expiration

Although open interest for both BTC and ETH perpetual swaps hasn’t returned to early December 2024 highs, it remained robust throughout the significant end-of-year options expiration event. This suggests that these markets weren’t heavily utilized to 

 of the expiring options contracts, likely contributing to the lack of volatility observed during this period. Instead, trading volumes have dipped noticeably during the winter holiday season, coinciding with a collapse in realized volatility back to December 2024’s lowest levels.

BTC Option Curve Remains Steep During Call-Put Parity

The expiration of December's end-of-year options didn’t trigger the anticipated surge in volatility; instead, realized volatility has plummeted to the lower end of its recent range. The implied volatility term structure remains steep compared to both its recent behavior and ETH's, with longer-dated implied volatility around 57%, and 1-week at-the-money options trading about five points lower. Much of the expired open interest hasn’t yet been rolled into new positions, maintaining a neutral balance between puts and calls. Consequently, BTC's options market positioning is relatively neutral, lacking the leverage it had at the start of December 2024.

Huge ETH Option Expiring Doesn’t Cause Volatility

A late December spike in realized volatility didn’t carry into the new year, with ETH’s spot price currently exhibiting volatility below that of short-tenor implied volatility. Interestingly, the implied volatility term structure has undergone a steepening and re-flattening over the past week, contrasting with BTC’s slightly steeper profile. This suggests that ETH’s options market is anticipating higher short-term volatility in spot price movements. 

Despite the significant expiration of options open interest at the end of December 2024, which didn’t lead to a rollover into later expirations, call options continue to dominate the market and have increased at the start of 2025.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Jan 2, 2025): BTC Options Continue to See Call-Put Parity, With Lower Short-Term Volatility Expected

Dive into FLock, a decentralized platform that revolutionizes the way AI models are developed, trained and deployed.

Artificial intelligence (AI) is poised to transform countless industries, but its development often raises questions about privacy, control and inclusivity. 

 is a unique decentralized platform that democratizes AI training, fine-tuning and inferencing. With its blockchain-powered infrastructure, FLock ensures transparency, security and community-driven decision-making, paving the way for AI models that align with established societal values. 

In this article, we’ll explore how FLock decentralizes AI training, its key features and its potential impact on developers, communities and users.

 platform that revolutionizes the way AI models are developed, trained and deployed. By leveraging blockchain technology and a novel approach called 

, FLock addresses critical issues in AI development, such as centralized control, lack of transparency and privacy concerns.

At its core, FLock’s mission is to democratize AI by enabling communities to participate directly in the creation and refinement of AI models. Through federated learning, FLock trains AI models across multiple decentralized devices or servers. This method ensures that data remains local, eliminating the need for raw data exchange while still enabling robust model training. By decentralizing the training process, FLock not only protects individual privacy, but also fosters a more inclusive ecosystem in which diverse contributors can collaborate.

What sets FLock apart is its integration of 

. This ensures that all contributions — whether data, compute power or feedback — are transparently recorded and fairly rewarded. Blockchain tech’s immutable ledger enhances trust among participants and safeguards the process against manipulation. Additionally, the platform’s on-chain incentive mechanisms encourage participation from a wide range of contributors, ensuring that rewards are distributed equitably.

Ultimately, FLock empowers communities to develop bespoke AI models tailored to their specific needs. By decentralizing the process and prioritizing transparency and collaboration, FLock breaks the monopoly of large corporations, creating an AI ecosystem that aligns with public ethics and societal values.

, an Oxford alumnus with a robust background in AI and blockchain technology. Sun, who serves as FLock's CEO, has an impressive career trajectory, having worked as the Director of AI for the Royal Bank of Canada and as an AI Research Fellow at Imperial College London. His vision for FLock stems from a deep understanding of both the technical and ethical challenges of AI development.

The founding team also includes other Oxford alumni, boasting over a decade of combined experience in AI research and the cryptocurrency industry. This team brings a collective blend of academic excellence and practical expertise that positions FLock to lead the decentralized AI movement.

FLock has successfully raised $11 million in funding across two rounds, reflecting strong investor confidence in its vision. In May 2024, FLock secured a $6 million seed round co-led by Lightspeed Faction and Tagus Capital, with additional backing from Digital Currency Group (DCG), Volt Capital, OKX Ventures and Inception Capital.

Later, in December 2024, FLock announced a $3 million successful funding round led by DCG and joined by prominent names like Animoca Brands, Fenbushi Capital, GnosisVC and GSR. These investments are being channelled into enhancing the platform’s testnet and federated learning client, accelerating FLock’s mission of enabling secure, collaborative AI development.

With this funding and over 1,500 nodes contributing from platforms like Numerai and Kaggle, FLock is rapidly scaling its impact on decentralized AI training.

FLock AI revolutionizes AI development through its decentralized training framework. This approach allows participants to contribute to AI model training without ever sharing their personal data. Instead, models are trained locally across devices using federated learning, which ensures that data remains with its owners while still enhancing the accuracy of the model overall. 

FLock’s reward system is designed to incentivize active participation. Contributors who provide data, computational power and/or feedback are compensated with FLOCK tokens, ensuring a fair distribution of rewards. 

FLock empowers its community through a robust governance framework. Decisions regarding AI model development, deployment and ethical considerations are driven by the community, ensuring alignment with established societal values. Through blockchain-based voting mechanisms, contributors can influence the direction of AI projects, fostering transparency and public accountability. 

FLock’s modular architecture allows contributors to participate in specific aspects of AI model development. Whether providing raw data or computational power or even refining algorithms, the platform enables a collaborative and scalable development process. 

At the core of FLock’s philosophy is its commitment to privacy and security. By leveraging blockchain technology, the platform ensures that no single entity controls the AI development process. Data remains local and protected by cryptographic measures, while the immutability of blockchain guarantees transparency in every transaction and model update. 

 begins with a blockchain and an AI layer.

The blockchain layer underpins FLock’s incentivization and security mechanisms.

The AI layer facilitates model training, refinement and deployment, leveraging both centralized and federated approaches.

Let’s have a look at the supply and demand for the FLOCK token.

FLock adopts a 1:2 ratio model between team/investors (33.3%) and community (66.7%), prioritizing community-driven growth and ecosystem expansion. The majority of tokens are allocated to incentivize user participation and long-term ecosystem success.

FLock aims to improve the future of AI development by decentralizing the training process and ensuring transparency, privacy and inclusivity. By leveraging blockchain and federated learning, FLock empowers communities to contribute to AI creation without compromising on privacy. Its innovative reward system and community-driven governance foster a fair and collaborative ecosystem. 

With significant backing and a growing network of contributors, FLock is positioning itself as a leader in decentralized AI, offering a more ethical and secure alternative to traditional AI development models. As it continues to scale, FLock is set to transform the way AI models are built and deployed.

 — and earn a share of a 10 million FLOCK prize pool. For more details, visit 

Intermediate

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FLock AI: Decentralized AI Training

In this tutorial, we’ll explore how you can complete a series of tasks in Network3 for Bybit Web3 Airdrop Arcade.

Task 1: Register for a Network3 Account and Connect Your Bybit Wallet 

: Navigate to the campaign page and click on the 

task. Click on the task, and Galxe will ask to redirect you to the Network3 register page.

: Register for a Network3 account using your email address. You may indicate a 

Task 2: Download the Network3 App and Run a Node for One Hour

 and choose your operating system to download the Network3 app.

 or powerbutton, depending upon which operating system you’re using. For ease of reference, we’ve used macOS and iOS as examples below.

: Keep running the node until the timer reaches 

Beginner

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How to Complete Network3 Tasks for Bybit Web3 Airdrop Arcade

Bybit Learn

Altcoins

Vita Inu is a dog-themed meme coin that functions at a high rate of transactions per second (TPS) with feeless transactions. Learn more about it here.

 have attracted ample attention over recent years. These projects were created without true utility, but their tokens' wild price volatility and social following kept users engaged. Another project is proving that meme coins can be fun and functional.

Vita Inu strives to stand apart from other similar meme coins through its focus on accountability and transparency. It’s also differentiated by its fast transactions, scalability and bridging capabilities to other blockchains. 

To optimize scalability, the Vita Inu ecosystem utilizes directed acyclic graph (

) technology. Notably, Vita Inu is the first public chain to use a DAG ledger with 

. The project's Vinuverse adds utility for users via 

 and more. Vita Inu’s platform also uses an innovative snapshot mechanism to decrease spam generated by malicious sources.

Established in 2021, Vita Inu is built on the 

, which uses a DAG ledger. Its core team steers the development of the Vita Inu ecosystem. The 

 uses the monikers of Elemont, Milltay, Shuttlecock and Bobster. There’s also an extended team that includes social media managers, marketers, influencers, software engineers, moderators and others. 

The Vinuverse, or VINU metaverse, is currently under development, and will add opportunities for eco-friendly merchandise, staking, special events, DApps and more for users to benefit.

Vita Inu seeks to incorporate accountability and transparency into a functional, engaging ecosystem. Like other popular, dog-themed meme coins, Vita Inu focuses on user socialization and camaraderie. At the same time, it supports the secure and free movement of cryptocurrencies over various blockchains, and will offer numerous features in the Vita Inu metaverse. The project’s philosophy is rooted in delivering an improved meme coin to users while building a strong community. Vita Inu is also a charitable project that promotes blockchain awareness and environmental conservation efforts.

Vita Inu works on the Vite Network by operating a DAG ledger. The Vite DAG chain serves the important role of bridging blockchains in a decentralized manner. Vita Inu’s DAG ledger supports fast, secure transactions with zero fees. It offers cross-chain bridging that allows VINU token holders to use their tokens on other blockchains, and it has numerous on-chain functions and features as well.

 uses a snapshot mechanism to maintain the DAG chain ledger’s consensus. This is achieved with Snapshot Block Producers, or SBPs, which are responsible for creating snapshot blocks. VINU token holders can vote for these SBPs, and those with the most votes can then produce blocks. SBPs receive rewards for building blocks. Notably, VINU token holders also receive rewards for participating in the voting process.

Vita Inu has been designed specifically with a thoughtful combination of features that support its real-world utility in various ways. 

 is the Vita Inu metaverse. Although it’s still being developed, its planned features are promising. In the Vinuverse, users can participate in a VR world, take part in special events, use the VinuSwap feature (explained below), stake their VINU tokens to earn rewards and more. Users can also create avatar NFTs and use special headsets to play games in the VINU VR world. With VINU tokens, users move throughout the Vinuverse without limitations.

Vita Inu seeks to provide seamless token movement across various ecosystems through the establishment of cross-chain bridges. This decentralized exchange (

) feature, known as VinuSwap, is an automated market maker (

By moving VINU tokens to another blockchain through VinuSwap, users can take advantage of all of the features on that blockchain using their VINU tokens. VinuSwap will also feature a lending platform and a staking platform.

In the future, Vita Inu will function as a decentralized autonomous organization (

). Users who hold VINU tokens and register to participate in the DAO will be able to vote on future developments. Those with more VINU tokens will have more voting power. The DAO is one of the core features promoting VINU's philosophy of accountability and transparency.

. Its accessibility, security and fast transaction processing speed make it superior to traditional blockchains. Vita Inu uses a proof of liquidity mechanism to reduce spam and enhance scalability. In addition, it’s 

-compatible, has zero fees and works with a proof of stake (

, also known as VinuBurn. Because burning reduces the circulating supply of VINU tokens, it creates upward pressure on Vita Inu’s price. The VinuBurn dashboard includes information on burn dates, the activity’s value and the number of tokens burned.

, a crypto raffle game in which users can purchase virtual raffle tickets with assets via 

. Most proceeds are allocated to the prize pool. Raffle winners are selected and announced after the pool is funded.

 is a lending platform for Vita Inu. This feature is currently in development and is expected to launch in 2023. It’s a decentralized zero-fee platform that supports lending to users, and features an easy-to-use interface and fast processing speed.

Vita Inu launched at the end of 2021. At that time, it offered a staking program, a metaverse, tracker listings and exchange listings. Throughout 2022, the Vite DAG chain was further developed and features like the NFT avatar collection, NFT staking program, VinuSwap and others came online. 

In August 2022, Vita Inu’s governing team agreed to update the token distribution. This resulted in a reduction of tokens allocated for SBP rewards and staking rewards. Additionally, the allocation to development and marketing increased. 

Developmental goals for Vita Inu in 2023 include introducing lending and other upgrades to VinuSwap, launching the DAO and bridging to more blockchains. In addition, the Vinuverse will expand to include sandbox integration, virtual land and game enhancements.

VINU is the native token of Vita Inu. It stands apart from some other meme coins with its fixed supply. The initial total supply of VINU is 1 quadrillion tokens. When the 

 was updated in August 2022, it allocated 50 trillion tokens to staking rewards (down from the original 100 trillion), 10 trillion to VINO SBP rewards (down from the original 25 trillion), 110 trillion to development (an increase from the original 75 trillion) and 105 trillion to marketing (an increase from the original 75 trillion). 

Based on this updated allocation, the Team distribution is now 250 trillion tokens. Public distribution has 185 trillion tokens, which is divided into 100 trillion for presale, 25 trillion for airdrops, 10 trillion for VINO SBP rewards and 50 trillion for staking rewards. The DAO has 565 trillion tokens, distributed with 100 trillion for monthly burns, 105 trillion for marketing, 110 trillion for development and 250 trillion for DAO reserves.

As of Jul 27, 2023, the current Vita Inu price is $0.000000008636. The current price reflects an increase of 3.5% over its 24-hour high. Market cap is $7 million, and the 24-hour trading volume is $1.14 million. Trading volume is down 29.6% over the last 24 hours. The highest price paid for VINU was $0.000000068772, on Mar 30, 2022. VINU’s current price is 87.48% lower than the highest price paid, and the lowest price paid was $0.000000003024 on Nov 19, 2021, which is 184.7% higher than the current price.

Prices of other meme coins have skyrocketed rapidly, and the same could happen with VINU, based on market sentiment, fundamentals and other factors. DigitalCoinPrice 

 its price could reach $0.0000000189 at the end of 2023 and $0.0000000313 in 2025. It also projects that the price will reach $0.0000000387 in 2027 and $0.0000000901 in 2030.

, which expects VINU’s price to reach $0.00000001 by the end of 2023 and increase to $0.00000002 by 2025, $0.00000005 in 2027 and $0.00000016 by 2030.

You can conveniently purchase VINU on Bybit. If you don’t have an open Bybit account, you can 

 at the top of the Bybit homepage. Once your account is open and properly funded, you can make spot trades on Bybit for VINU by navigating to the 

Generally, meme coin investments have been highly speculative and associated with considerable risk. VINU is positioned to be the next big 

, but it also has exceptional real-world functionality. In addition, Vita Inu has a healthy marketing and development budget, which allows for future growth. At the same time, it uses a burning mechanism to periodically reduce the circulating supply of VINU tokens and create upward pressure on the price. 

While all crypto investments are risky due to extreme price volatility, this project’s utility supports VINU’s price growth. As always, it’s recommended you 

 before investing in any assets, including cryptocurrencies.

Vita Inu offers an innovative meme coin experience for users, integrating the fun and social aspects of meme coins with real-life functionality. Many aspects of Vita Inu are still in development, so users may consider getting in on the ground floor with this crypto project.

Vita Inu (VINU): A Dog-Themed Meme Coin With Real-World Utility

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards