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.

Advanced

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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 launched the Bybit Merch Creative Challenge for university students worldwide, offering a $50,000 USDT prize pool.

The S&P 500 dropped 0.22% on Thursday, its fifth straight decline, with investors eyeing Friday’s economic updates. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 2.03%, with Bitcoin and Ether rising by 2.79% and 2.70%, respectively in the past 24 hours.

Today's top performer is XRP, which surged 1.9% following a rise in price driven by increased open interest and positive market sentiment.

Ripple (XRP), launched in August 2012, is a blockchain technology company focused on improving international payments with its cryptocurrency, XRP. XRP price surged due to increased open interest, a major XRP transfer, and market sentiment linked to Trump's inauguration. Bullish momentum is supported by high short liquidations, with key resistance levels to watch for further price movement.

Check Out the Latest Prices, Charts, and Data of 

 for university students worldwide, offering a $50,000 USDT prize pool. Participants can design exclusive Bybit merchandise, with submissions open until Jan. 15, 2025. Winners will be announced on Feb. 1, 2025, across four prize categories.

Yesterday, Bitcoin Spot ETFs recorded a total inflow of $84.8M, driven by $107.9M from non-GBTC funds, partially offset by a $23.1M outflow from GBTC.

, offering an airdrop for participants who complete tasks like swapping and bridging using the Mango wallet. Points earned through tasks determine airdrop rewards. Join via the Mango wallet and follow steps on the testnet dashboard.

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Bybit Launches $50,000 Merch Design Challenge for University Students Worldwide

Blockchain

Altcoins

Stratis (STRAX) is a blockchain-as-a-service (BaaS) platform that lets developers build their own protected blockchains using the popular .NET framework and C# programming language. 

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Microsoft’s .NET framework and the C# programming language, an integral part of it, are among the most popular tools in the software development world. Stratis (STRAX) is a blockchain development platform that leverages these tools to enable organizations to create and customize their own fully functional sidechains. As the business world increasingly adopts blockchain technology, platforms like Stratis are becoming instrumental in enabling this growth.

) platform that lets developers build their own protected blockchains

. The custom, protected blockchains built using the Stratis development framework operate as sidechains, with the Stratis chain providing the core operational and security mechanism.

Stratis leverages both Microsoft’s .NET development framework and the C# programming language. Using C#, blockchain developers can easily write 

 code on Stratis-based sidechains. Thanks to the popularity and prolific use of these technologies in the development world, Stratis creates the opportunity for wider adoption of blockchain technology by businesses.

Stratis is best known in the blockchain world for its BaaS-based sidechain development tools. However, Stratis also operates as a blockchain consultancy firm, offering businesses a variety of other decentralized cloud-based products. In most cases, these products leverage Stratis’s core network but are designed for business clients who don’t need (or prefer not to launch) their own full-scale sidechain networks.

Stratis’s development tools and consultancy services make it one of the most versatile business-oriented blockchain platforms in the crypto industry.

The Stratis blockchain platform has adopted many of 

’s architectural features, including the 

 transaction model, one of two major account models used in modern blockchains (the other one being the account-based model employed by Ethereum). UTXO has a number of advantages over the account-based system, of which the security of transactions is probably the major one. Since Stratis positions itself as a platform for corporate use, the security for blockchain transactions is an important consideration.

However, unlike Bitcoin, the Stratis core chain uses proof of stake (

) transaction validation, which has the benefit of being faster and more energy-efficient than Bitcoin’s proof of work (

) consensus mechanism. At the same time, custom-developed sidechains linked to the Stratis chain aren’t limited to PoS validation. For example, the main sidechain of Stratis, the Cirrus sidechain developed by the project’s own team, uses proof of authority (

Full nodes on the Stratis platform are the key pillars maintaining network consensus and operations. A full network node on Stratis is written using the .NET framework in C#, in line with the project’s focus on supporting these technologies. Full nodes process and validate transaction blocks on the main Stratis chain. They may also be used in the block validation process on sidechains linked to Stratis.

Stratis’s full nodes are incredibly versatile, as they can support three different validation models: PoS, PoW and PoA. If PoW validation is enabled on a Stratis full node, that node can even participate in mining blocks on the Bitcoin blockchain.

The Stratis platform can be used to develop smart contract–capable sidechains. By design, the main Stratis chain doesn’t support smart contracts, which helps ensure the security of the overall ecosystem. Smart contracts — again, written in the C# programming language — can be integrated into custom-built sidechains on the platform. For instance, the Cirrus sidechain (mentioned above) is a smart contract–capable network.

Stratis sidechains are connected to the main Stratis chain using the 

 interoperability protocol. The Cirrus chain is the first sidechain linked to the Stratis blockchain, and serves as the primary showcase platform to demonstrate the overall functioning of the entire ecosystem.

Users who need to enable smart contract operations and pay for gas fees can deposit STRAX to the Cirrus sidechain and receive CRS in return. We’ll cover the STRAX coin in a later section.

Masternodes are another type of node used within the Stratis ecosystem. While full nodes are primarily used to secure the main chain of the platform, Masternodes’ key function is to validate transaction blocks on the Cirrus sidechain. Any user can become a Stratis Masternode by depositing 100,000 STRAX and paying a joining fee of 500 CRS.

Although Masternodes’ key functionality is to process blocks on the sidechain, they also receive half of the amount from the validation rewards on the Stratis chain. In addition to paying the deposit, Masternodes need to ensure that they maintain their online presence as much as possible to help process transactions. Only active Masternodes receive block validation rewards of 9 STRAX, generated every 45 seconds per block. Masternodes can also stake their STRAX deposits on the main chain to earn additional rewards.

Stratis offers several custom blockchain applications to businesses that don’t need (or want to develop) their own full sidechains.

This is a decentralized identity management product for user authorization and authentication. Companies can use Stratis Identity to ensure that their access management and control are based on a secure, decentralized storage platform.

The aptly named Distributed Ledger is Stratis’s decentralized database solution. By using the Stratis Distributed Ledger, organizations can store, access and update their databases in a secure, trustless and decentralized mode. This provides the benefits of blockchain-based cryptographic security, data immutability and protection from hacker attacks on centralized corporate systems.

Stratis STO (Security Token Offering) Platform is a solution for the issuance and comprehensive management of security crypto tokens. Security tokens provide their holders with a stake in a new crypto project, similar to ownership shares in IPOs conducted in the stock market. Startups and other businesses can use the STO Platform to raise early capital for their crypto initiatives.

This is a decentralized solution from Stratis to help businesses set up goods-tracking and payment processing along their supply chains, without having to develop a full-scale supply chain management system.

Stratis Unity 3D SDK and Unreal Engine SDK

Unity and Unreal are two popular development engines used by programmers to create sophisticated, visually rich games for a variety of platforms, including on blockchains. Stratis offers two SDK (software development kit) products — Unity 3D SDK and Unreal Engine SDK — for game programmers specializing in the respective engines. Using these SDKs, programmers can create blockchain-based games and integrate features like NFTs and fungible tokens into their gaming environments.

, a process used to validate transaction blocks on its network. Stakers need to lock their STRAX funds on the platform in order to participate in staking, for which they earn block rewards. Stratis uses the standard staking model — the more STRAX you lock on the platform, the higher your chance of receiving the next block of transactions to validate.

A distinct feature of Stratis’s staking is so-called “cold staking,” whereby validators can process transaction blocks while having their staked STRAX held in cold storage (i.e., in a wallet that’s disconnected from the internet). This adds a higher degree of security to the staking process.

In order to participate in staking, you’ll need to use the STRAX Wallet, which can be configured for the cold staking mode mentioned above.

Stratis also offers another wallet within its ecosystem — Cirrus Core — which is used to store, send and receive tokens issued on the Cirrus sidechain.

The STRAX coin’s core function on the Stratis platform is to help validate transaction blocks via staking. Block rewards are paid in STRAX. Masternodes also need to use STRAX as a deposit when joining the platform.

The STRAX coin also has some governance functionality. For instance, in a recent announcement, the Stratis team outlined 

, a platform designed to make Stratis interoperable with Ethereum. Part of the StratisEVM is a new STRAT coin. Holders of STRAX have been encouraged to vote on the new coin’s tokenomics.

As of Nov 1, 2023, STRAX is trading at $0.94, a 95.79% drop from its ATH of $22.77 registered on Jan 8, 2018, and over an 8,000% increase from its all-time low of $0.011 on Aug 12, 2016.

STRAX’s price outlook is bullish, particularly in the long term. DigitalCoinPrice 

 at $3.47 by 2025 and $10.02 by 2030. PricePrediction, meanwhile, 

 in the short term, estimating STRAX will reach $1.43 by 2025 but anticipating a substantial surge to $9.29 by 2030.

When it comes to investment potential, STRAX has several factors that work in its favor:

1. Long-term price predictions for the coin are all strongly bullish.

2. STRAX’s recent market performance also supports optimism toward the coin, its price appreciating in tandem with Bitcoin (BTC) and recording an estimated growth of over 100% within the past year.

3. Stratis is a unique project that opens blockchain and smart contract development opportunities to the vast army of .NET and C# programmers.

4. As a wider platform, Stratis maintains a strong focus on corporate blockchain solutions, an area that’s ripe for growth.

Naturally, crypto investors shouldn’t treat this assessment as financial advice, and are encouraged to further explore the coin’s potential as part of their comprehensive decision-making processes.

. If you don’t yet have an account on Bybit, 

 is quick and easy. When you open your Bybit account, you’ll receive access to STRAX and hundreds of other crypto assets in both the Spot and Derivatives markets.

The corporate world is moving toward broader adoption of blockchain technology, and Stratis only stands to benefit from this development. Businesses serious about blockchain will find a diverse choice of solutions on the platform, from smart contract–capable sidechains to various ready-made blockchain products.

Stratis is also deeply committed to easing the point of entry for the mainstream developer community. The ability to create sidechains written in the popular .NET framework and C# language opens up opportunities for a more extensive base of programmers to participate in blockchain development.

With a strong focus on applied business solutions, a developer-first mentality and a network that features great security features, such as the UTXO model and cold staking, the sky’s the limit for the Stratis team and their platform.

Stratis (STRAX): Custom Blockchains Made Easy

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards