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

The U.S. presidential election is creating a volatility premium for options expiring after Nov 5, 2024. While longer-term volatility smiles have consistently favored out-of-the-money (OTM) calls, short-term options have recently mirrored this trend. This suggests that the decline in spot prices at the end of September hasn’t significantly dampened sentiment in the derivatives markets.

Please check out some of the report’s highlights.

Futures Activities Subdued After Month-End Expiration

Spot price volatility leading up to the Sep 27, 2024 futures expiration resulted in the highest trading volumes in futures contracts in over a month. This surge was primarily focused on BTC contracts, reflecting a trend we've seen throughout much of the market's recent history. The expiration of a substantial quarterly contract at the end of September caused a decline in open interest, as not all traders opted to roll their positions into later expirations. Consequently, futures activity is currently much lower compared to that in perpetual swap markets.

While the expiration of the September contract led to a significant drop in futures open interest, the effect on perpetual swap contract markets was comparatively mild. Although we observed a decline in perpetual open interest at the end of the month, this was likely due to the closure of long positions as spot prices retreated toward the lower end of their recent range. 

This shift halts an upward trend in open interest that had been approaching all-time highs, but it doesn’t indicate a major decline — especially considering the high trading volumes recorded over the last two days of the month.

BTC ATM Implied Volatility Falls Sharply Since Fed Rate Cut

Positioning in BTC options markets continues to be heavily influenced by the U.S. election narrative. This is most evident in the term structure, which indicates significantly higher volatility expectations following the election, while short-term options are trading at much lower levels. The rise in implied volatility for these shorter tenors contrasts with the recent decline in actual volatility, which has reached lows for the month as spot prices remain relatively stable. 

Over the past week, trade volumes have mirrored this shifting sentiment, showing similar activity in both puts and calls. However, neither trade volumes nor open interest levels have surpassed recent figures, reflecting the range-bound nature of BTC spot prices, which remain influenced by broader macroeconomic factors.

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BlockSholves X Bybit Tech Report

Bybit X Block Scholes Crypto Derivatives Analytics Report (Oct 2, 2024): Positive Sentiment Persists Following Recent Decline in Spot Prices

Sui has made history as the first blockchain to adopt SCION, a secure alternative to the Border Gateway Protocol (BGP), which protects against Internet routing attacks.

The SPX index was up by 0.01%, with energy, technology, and financial sectors performing well, while consumer discretionary, staples, and communication services lagging. Geopolitical tensions in the Middle East also remained in focus. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.56%, with Bitcoin and Ether dropping by 2.48% and by 2.65%, respectively in the past 24 hours.

Today's top performer is W, which surged 10.1% following the launch of Wormholescan v2, featuring enhanced multichain data and developer tools.

Wormhole (W), launched in 2020, is a cross-chain protocol that facilitates communication and token transfers across over 30 blockchain networks. Originally a crypto bridge between Solana and Ethereum, it has expanded to include features like the Portal token bridge and messaging protocols, serving as a comprehensive platform for cross-chain interactions. 

, providing enhanced real-time multichain data for the Wormhole ecosystem. New features include token, chain, and protocol analysis, a governor dashboard, a dedicated analytics page, and a developer section with a VAA parser. Users can explore these updates at 

Check Out the Latest Prices, Charts, and Data of 

Sui has made history as the first blockchain to adopt SCION, a secure alternative to the Border Gateway Protocol (BGP), which protects against Internet routing attacks. SCION addresses security flaws in BGP that have led to significant problems on other networks by preventing malicious traffic rerouting. With SCION, Sui enhances network resilience, safeguards validators from hijacking and DDoS attacks, and boosts performance with reduced latency. This integration solidifies Sui's position as a top blockchain for secure, critical infrastructure applications, maintaining 100% uptime since launching its mainnet.

Yesterday, the total flow for BTC spot ETFs was -$39.2 million, with no flow for GBTC and a negative flow of $39.2 million for non-GBTC ETFs.

, allowing users to earn test XTM and Gems. To participate, users need to download the app via the provided link, install it, and mine tXTM to earn 25 Gems per 1 tXTM mined. More Gems lead to a larger Tari airdrop.

Beginner

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Sui Integrates SCION to Pioneer Blockchain Security Against Internet Routing Attacks

Eigenpie (EGP) is the ETH liquid restaking platform on EigenLayer enabling ETH and LST holders to earn rewards from multiple protocols while maintaining liquidity through liquid restaking tokens (LRTs).

, token holders are required to lock away their tokens for a long time through the 

 (PoS) consensus mechanism on the platform. While this structure helps keep the network liquid and secure, it’s a bit rigid regarding capital efficiency.

To counter this limitation, liquid staking protocols such as 

, which allows staked ETH to be used for other 

 (DeFi) activities, earning token holders extra rewards by issuing liquid staking tokens (LSTs).

However, liquid staking only allows assets to be staked in a single PoS blockchain. This limitation has led to the development of 

. It allows you to use staked assets to secure and earn rewards from multiple protocols through the use of 

One of the liquid restaking protocols operating on EigenLayer is Eigenpie, which lets you stake your staked assets to node operators in exchange for LRTs so you can earn rewards.

Let's examine Eigenpie more closely to see how it’s shaping the liquid restacking narrative in the DeFi ecosystem.

Eigenpie is a liquid restaking protocol within the EigenLayer ecosystem that allows you to earn passive income from both Ethereum staking and EigenLayer restaking while maintaining your assets’ liquidity through the use of LRTs. 

 ecosystem, Eigenpie aims to provide more utility for ETH holders in line with the broader vision of EigenLayer via liquid restaking.

As a native ETH holder or liquid staking participant, you can deposit your assets on Eigenpie, which then restakes them to node validators on EigenLayer. The node validators will then use these assets to power new 

 (AVS) on EigenLayer, allowing you as a token holder to earn extra rewards while maintaining liquid positions. Eigenpie has integrated with various DeFi platforms that let you use your LRTs to explore other yield-earning DeFi opportunities while accumulating Eigenpie points that qualify you for the EGP 

EigenLayer is an Ethereum restaking protocol designed to enhance the capital efficiency of your staked ETH by restaking it across different protocols. As a support layer for the Ethereum network, EigenLayer has a set of node validators who temporarily stake assets and verify transactions securely. Users who delegate their tokens to these node validators receive LRTs, which earn them rewards without unlocking their staked positions.

EigenLayer operates a system of AVS that allows projects such as sidechains, 

 to connect to its liquid restaking token protocols in order to secure their platforms without running full nodes.

As a novel isolated liquid restaking platform of EigenLayer, Eigenpie’s distinctive features include the following.

Eigenpie offers an innovative approach to liquid restaking by offering isolated liquid restaking tokens exclusive to a particular ETH LST. This isolates the risk to only the specific token staked on Eigenpie, and not any other ETH LST’s performance. This feature not only ensures that liquid restaking on Eigenpie is security-focused, but also offers an optimal restaking experience, especially to risk-averse LST holders. Below is a chart with the isolated liquid restaking tokens available on Eigenpie.

Eigenpie also offers isolated native restaking in collaboration with 

, an open-source ETH staking network that uses 

 (SSV) technology to create a decentralized and secure environment for ETH staking by splitting a validator key into several keyshares, which are distributed to multiple nodes. The isolated native restaking feature on Eigenpie allows ETH holders to connect their ETH to the website and restake it through a simple user interface. Once it’s restaked, ETH holders receive egETH tokens that earn them 2x Eigenpie points, resulting in better yields over time.

Eigenpie Enterprise, a restaking feature on Eigenpie designed for institutional grade investors, 

 that are designed to accommodate different enterprises, depending upon their needs.

The first version allows enterprises to participate in native restaking, liquid restaking and DeFi protocols only within the Eigenpie ecosystem in order to reduce their risk of bad debt. Meanwhile, the second version enables institutions to expand their positions from their existing EigenLayer holdings into the Eigenpie Institution Node Delegator, which opens them to more DeFi opportunities since they can deposit their LRTs in their preferred DeFi platform.

Eigenpie Token (EGP) is the governance and reward-earning 

 on Eigenpie. It's designed to ensure the sustainability and long-term success of Eigenpie as a restaking platform. As an EGP holder, you can lock your tokens to receive vlEGP tokens (at a 1:1 ratio) that can then be used to participate in Eigenpie's governance, and to earn rewards for active participation in the ecosystem. 

 EGP has a total supply of 10 million tokens, distributed as shown below:

Eigenpie's airdrop is reserved for holders who accumulate Eigenpie points through user engagement, and for 

 users from Binance and OKX. To accumulate Eigenpie points, users need to remain active on the platform by depositing LSTs. In short, 1 ETH worth of LST deposits on the platform earns you one point per hour. You can also earn points through referral, whereby your additional points are proportionate to the points earned by your referee.

You can buy EGP on Bybit's Spot trading platform. The token is listed as the 

 trading pair. Trading EGP on Bybit's user-friendly terminal is fast and efficient, and comes with 24-hour multilingual customer support.

The liquid restaking concept in cryptocurrency continues to proliferate, since it provides capital-efficient utility for ETH holders. Since Eigenpie is a top protocol on EigenLayer, ETH and LST holders can leverage its features, such as isolated liquid restaking and native restaking, to earn additional passive income from their staked assets.

Furthermore, institutional enterprises can leverage Eigenpie’s platform to access a wide range of DeFi opportunities by using their staked assets. The protocol offers liquid restaking services, and is thus timely as investors continue to explore DeFi opportunities in the crypto market.

Intermediate

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Eigenpie (EGP): ETH Liquid Restaking Powered by EigenLayer

Mumu the Bull is a meme coin built on the Solana blockchain. Learn more about how it works in this article.

 are two of the most iconic. Of the two imposing quadrupeds used to describe general market trends, almost everyone hopes for a bull market, in which prices soar. The crypto project known as Mumu the Bull has taken this classic concept and turned it into a 

. By combining internet trends from around the globe, Mumu the Bull hopes to create the next big thing. Is Mumu the Bull popular right now, and will its price increase in the future? Explore this guide to find out.

 blockchain. Its marketing ties together cartoon animal imagery, similarly to 

, with crypto memes about bull markets. This coin is also known for its competition with the Bobo the Bear meme coin.

According to Mumu the Bull’s creators, the coin’s primary goals are to unite the crypto world by including references to several beloved memes within the crypto universe, and to encourage countless users to trade its coin. In addition to references to bull and bear markets, Mumu the Bull endeavors to capitalize on familiarity with Pepe the Frog meme coins. It uses similar art and occasionally includes cartoon frogs in its memes. Eventually, 

 it will be able to use these playful references to become "the meme coin to rule them all." 

Some crypto investors also believe that Mumu the Bull can function as a market sentiment tracker. Its creators have set up Mumu the Bull to compete with Bobo the Bear. Therefore, some users hope that they’ll be able to predict a bull-vs.-bear crypto market by considering which of the two cryptos has a higher price and/or trading volume.

The Mumu the Bull meme coin project is built on the Solana blockchain. Thus, instead of running its own ledger, it uses the underlying security of Solana to validate and track each transaction. While Solana handles the back end, Mumu the Bull's team is focused on promoting the token. They’ve created multiple social media sites, and spend a lot of time generating memes and artwork surrounding the coin. This allows them to get their coin into the public consciousness, so more crypto enthusiasts will be interested in buying it.

 that automatically removes 0.25% of tokens from the liquidity pool for each sale that’s made. This has resulted in a current total supply of 2.324 trillion tokens. Of the total supply, 95% has been allocated toward liquidity. These tokens quickly ended up being bought and sold on the open market. The remaining 5% of tokens were distributed to the Mumu the Bull team to compensate them for their work.

Initially, the MUMU token struggled to gain attention after its release, trading at roughly $0.000005. However, several months after its launch, Mumu the Bull took the crypto world by storm. Prices suddenly doubled, and then doubled again. By Jul 29, 2024, MUMU had reached an all-time high (ATH) of $0.00012. 

Despite a drop in price from its ATH, Mumu the Bull has still managed to retain popularity. MUMU is currently within the 

 by market cap and among the top 500 cryptocurrencies overall. Furthermore, MUMU’s 24-hour trading volume is $9.87 million (as of Oct 2, 2024), and its price is still up, roughly 1,257% from its ATL. 

This pricing history reveals a lot about the popularity of Mumu the Bull. Instead of following the trend of many meme coins, with a brief spike in interest followed by obscurity, Mumu the Bull has experienced a slow yet steady rise in trading. This coin has gone from an underrated novelty to an iconic meme coin in the 2024 market. Particularly when the market is dealing with bull conditions, Mumu the Bull is trading very well.

MUMU tokens are primarily available through 

 (DEXs). The creators of Mumu the Bull suggest that people purchase MUMU by purchasing Solana tokens, and then swapping Solana for MUMU tokens on a DEX. 

However, if you prefer a more convenient way to invest in MUMU, consider purchasing Mumu the Bull tokens as a Perpetual contract. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

If you're looking for a diverse portfolio filled with meme coins, the MUMU token is a promising option. Its price is currently low enough that it's not overinflated, yet it's still seeing a lot of trading activity. Thanks to its proximity to the Pepe the Frog universe, Mumu the Bull seems likely to keep its audience interested for some time.

However, this probably isn't a meme coin that's going to turn anyone into a millionaire overnight. While it's performing reasonably well, nothing about the coin indicates an imminent drastic increase in value. It's likely to undergo both small price increases and decreases in the future. Due to the inherent volatility of meme coins, investors need to exercise some caution when purchasing Mumu the Bull. Never overextend yourself financially, and make sure you 

Ultimately, Mumu the Bull is a promising addition to the world of meme coins. By focusing on classic memes about market conditions, it's managed to attract an audience and increase its prices. However, Mumu the Bull has a lot of competition, so only time will tell if this token can become a top meme coin.

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Mumu the Bull (MUMU): A Symbol of the Bull Run Moovement

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Blockchain

Altcoins

Polygon 2.0 is the next generation of the Layer 2 Polygon network, which seeks to create unlimited scalability and unification of information exchange via its Value Layer. 

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 projects trying to address the network's cost and speed inefficiencies have been introduced. Among these projects, Polygon (POL) stands out as one of the most popular and influential.

The Polygon ecosystem is a set of mostly Layer 2 technologies that allow users to conduct Ethereum transactions in a more cost-effective and scalable way than using the blockchain's Layer 1 directly. Founded in 2017 as Matic Network (MATIC), the project rebranded to Polygon in early 2021 while still keeping the MATIC token as its native cryptocurrency.

In September 2024, the Polygon project completed a pivotal native token migration — from MATIC to the new POL crypto — as part of its Polygon 2.0 initiative. The transition to the new Polygon ecosystem token, POL, isn't just a name change: the new cryptocurrency brings functional and security improvements and extensions that will help the Polygon project in its quest to become the leading Ethereum-linked Layer 2 ecosystem.

 started out in 2017 as a proposed Layer 2 solution to address the cost and speed inefficiencies of Ethereum. The project was founded by a group of technology entrepreneurs and blockchain enthusiasts — Jaynti Kanani, Sandeep Nailwal, Anurag Arjun and Mihailo Bjelic. From 2017 to 2020 the project team was involved in developing and promoting its Layer solution, based on a 

 (PoS) sidechain anchored to Ethereum. The project conducted an 

 (ICO) for its original native token, MATIC, in April 2019.

In May 2020, the Polygon sidechain (then named Matic Network) had its official mainnet launch. The MATIC token was originally issued on Ethereum as an 

 asset, and could be bridged to Polygon PoS. It had three primary functions: transaction fee payments, 

. The last function, however, was used exclusively via the Ethereum blockchain — i.e., MATIC could only be staked on Ethereum, and not directly on Polygon PoS. In essence, this limitation meant that MATIC would serve mainly as a gas fee token on Polygon, with some additional governance functionality.

In terms of its tokenomics, MATIC was designed as a supply-capped token. Its total and maximum supply were set at 10 billion.

Polygon's ecosystem of products and Layer 2 solutions grew following the PoS chain's introduction (more on that below). The network’s fragmentation, along with the limitations of MATIC's functionality, prompted active research and development by the project team.

 — a new iteration of the platform that would improve its scalability, staking functionality, security and cross-platform interoperability. A month later, plans for the new POL token to replace MATIC were unveiled as well. POL is an integral part of the overall Polygon 2.0 vision, and is designed to drastically improve and expand MATIC's functionality.

The new token was issued on Ethereum in October 2023 with the intent to completely replace MATIC in the future. On Sep 4, 2024, Polygon officially transitioned to POL, with all of MATIC’s functions now carried out by the new token. Following the big switch, MATIC holders can still convert their tokens to POL on a 1:1 basis, using the 

Polygon 2.0 is the next generation of the Layer 2 Polygon network, which seeks to create unlimited scalability and unification of information exchange via its Value Layer.

Polygon 2.0 is a newly proposed protocol that combines all of Polygon's current protocols with 

 (ZK) technology to produce a Value Layer, which enables seamless use of the Polygon network and expands Ethereum to an internet scale. 

Among the improvements introduced in Polygon 2.0 are enhanced decentralization in community governance, a token upgrade, multi-layered network architecture and a ZK ecosystem. These advancements will enable the network to securely support an unlimited number of chains, making user interaction with the entire Polygon ecosystem as smooth as interaction with a single chain.

Founded as Matic Network in 2017, Polygon was created to act as a sidechain that helps scale Ethereum. The project later rebranded as Polygon (while retaining the MATIC token). Despite the rebranding and technological upgrades, such as the shift from 

, Polygon remains a fragmented system that faces challenges in liquidity and user experience, due to the presence of multiple public chains like 

To unify the ecosystem, Polygon 2.0 has been proposed as a way to merge its public chains with its Supernet chains. The plan encompasses improvements in key areas like 

 and protocol architecture. These enhancements will collaboratively facilitate cross-chain interactions, offering users the advantages of utilizing different chains while enjoying a seamless experience akin to a single chain.

Upgrades to Polygon will be done in stages, starting from the upgrade of the Polygon PoS chain. 

As of September 2024, the complete transition to Polygon 2.0 is still in progress, with most of the protocol upgrades in active development or test phases.

The project's main network, the Polygon PoS sidechain, will be upgraded to ZK Validium, a Layer 2 solution in which off-chain data availability is used to validate transactions more efficiently. Polygon's Validium will leverage 

 for transaction validation. The architectural change from a sidechain to Validium should improve the platform's processing capacity and scalability. Testing of the zkEVM Validium chain was held from November 2023 to January 2024.

Polygon zkEVM Upgrade From Type 3 to Type 2

Besides the Polygon PoS chain, another major Layer 2 solution within the project's ecosystem is zkEVM, a ZK-based rollup platform designed to drastically improve the cost and scalability of Ethereum transactions. While Polygon PoS, a sidechain, has its own functional network that can process transactions independently from Ethereum, zkEVM relies heavily on the underlying Ethereum chain and is more integrated with it.

 (EVM)–compatible platform that is almost EVM equivalent. The plan is to transition it to a Type 2 system, which offers higher compatibility with Ethereum and features full EVM equivalence.

, a development framework for designing and launching customizable ZK-based Layer 2 chains. In early 2024, Polygon CDK was upgraded to support functionality that lets any EVM-compatible chain function as a ZK Layer 2 network. This upgrade also makes it possible for chains developed using the CDK to join the platform's 

 (AggLayer), a critical part of the Polygon 2.0 architecture.

Polygon's AggLayer is envisioned to act as a protocol that unifies multiple blockchains, providing the same integrated user interface and creating a virtual single-chain-like experience. Networks in the AggLayer will benefit from cross-chain compatibility and optimized asset transfers between them.

Polygon Miden is a ZK technology–based Layer 2 rollup solution based on the Miden Virtual Machine (MVM). Written in the Rust programming language, Miden VM offers certain advantages over EVM, such as enhanced throughput and privacy of transacting on Ethereum. It’ss designed specifically for developers who wish to integrate privacy into their 

 was released in early 2024, with the Miden Alpha Testnet v2 launched in June 2024. This was quickly followed by the July 2024 release of the third version. As of the time of this writing in late September 2024, Polygon Miden is in its fourth Testnet state.

: When the zkEVM Validium L2 chain is complete, Polygon 2.0 will consist of 

: the Staking Layer, AggLayer, Execution Layer and Proving Layer. 

: On Sep 4, 2024, the MATIC token was upgraded to POL, with all of its key functionalities — gas fee payments, staking and governance — now carried out by the new POL cryptocurrency.

: To tie the whole of Polygon 2.0 together, the Polygon community will be given complete control over the entire Polygon ecosystem via a 

: Protocol Governance, System Smart Contract Governance and Community Treasury Governance. The compartmentalization created by the three pillars will make governance more efficient and scalable. 

The Polygon 2.0 updates are designed to consolidate all of the current Polygon protocols for unlimited scalability and unified liquidity, while also offering the benefits available via Ethereum. Two main objectives will be accomplished: Users’ privacy and transaction costs will be improved by storing validated transactions on Layer 1 Ethereum and actual data on Layer 2 Polygon. In addition, multiple Polygon chains will be supported, with no limit on cross-chain interactions. This will give users a more robust experience that will still seem like using a single chain. 

Each of the four layers of the new Polygon 2.0 ecosystem is responsible for a specific process. 

Collectively, these core layers establish Polygon 2.0 as the 

The POL token is now fully operational, and carries out the three main functions previously supported by MATIC (governance, gas fee payments and staking for the Polygon PoS chain). Holders of POL can participate in votes on the future direction of the protocol. 

For the future, governance functionalities and the involvement of POL holders in on-platform decision-making will further expand to cover three key areas — protocol governance, 

 details governance and community treasury allocations. POL will also be used as a unified gas fee payment asset across all chains under the Polygon Supernet structure.

Unlike MATIC, which had a hard supply cap of 10 billion, POL has no maximum supply limitation. Its initial total supply was specified at 10 billion, exactly the same number as the supply of MATIC. However, as it includes an annual 2% emissions rate for a period of 10 years, its supply is expected to grow within this period. As of late September 2024, POL's total supply already stands at around 10.26 billion, while its circulating supply is approximately 7.27 billion.

The emissions will be split equally between validator rewards (to incentivize long-term staking, which will help secure and scale the Polygon network) and allocation for the community treasury (to spur innovation and research). The emissions are adjustable and can be changed via community governance.

 with USDT via Bybit’s Derivatives market. The Perp contract allows you to trade POL with up to 75x leverage.

As of Sep 27, 2024, the POL token is trading at $0.4299 (66.6% lower than its all-time high of $1.29 on Mar 13, 2024, and 24.6% higher than its all-time low of $0.345 on Aug 5, 2024).

Long-term price forecasts for POL are generally bullish. PricePrediction 

 to trade at $0.78 in 2025 and $5.33 in 2030, while DigitalCoinPrice 

While several other L2 projects are undergoing similar expansion — such as the 

, which integrates all of its OP Mainnet with other L2s to enhance scalability — 

Polygon's transition is perhaps the most notable development in this space.

You might consider investing in the POL token based on Polygon's standing as one of the leaders in the Layer 2 arena. Additionally, the finalization of the move to Polygon 2.0 is also expected to boost the token's position in the future.

While investing in POL could be profitable, this is not financial advice. Always complete your own thorough, 

The Polygon ecosystem has long been a leading Layer 2 project, but advancements introduced in other newer projects have resulted in the need for significant improvements. Polygon Labs, developers and other contributors have produced Polygon 2.0 in response to this need. 

When Polygon 2.0 is completely functional in its final state, its project will hope to lay claim to the title of undisputed leader among Ethereum Layer 2 environments.

Polygon 2.0 (POL): Transitioning from MATIC to POL

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