Celebrate our collective journey on Bybit Learn throughout 2024 as we go through the highlights of your crypto learning journey, and look at what’s on the horizon in 2025.

2024 was a landmark year for the cryptocurrency industry, marked by significant events that reshaped the landscape of digital assets.

The year kicked off with a bang as the U.S. Securities and Exchange Commission (SEC) approved spot 

 in early 2024. This approval not only legitimized Bitcoin in the eyes of traditional investors but also paved the way for massive institutional investment into the cryptocurrency market.

Market sentiments turned bullish in March, driven by the successful 

 launch. Bitcoin's price surged and broke its 2021 all-time high (ATH) price of $69,000. This marked the first time Bitcoin made a new ATH before the Bitcoin halving event.

 in April 2024, which reduced the reward for mining new blocks, effectively halving the rate at which new BTC are generated.

Finally, in November 2024, Donald Trump was re-elected as President of the United States, which had a profound impact on the crypto market. His administration's pro-crypto stance included pledges to make the U.S. the "crypto capital of the world." This fueled optimism and drove Bitcoin’s price above the historical 

Throughout this tumultuous and exciting year, 

 was a steadfast companion for crypto enthusiasts and investors, providing educational content, daily market updates, research reports and more.

This article celebrates our collective journey on Bybit Learn throughout 2024, encapsulating the learning and growth within the everchanging crypto space.

Your Favorite Crypto Page-Turner This Year

You dove headfirst into the deep end of crypto in 2024, embracing our most captivating pieces like they were the last episodes of your favorite Netflix series. From blockchain basics to memecoin trading, you've shown that when it comes to learning, you're all in for the long haul.

Time flies. Not too long ago, we covered a 

, one of your favorite articles. Now, we are celebrating 2024, and what a year it has been. Bybit launched numerous innovative products, with 

 one of the most interesting to our readers. The Ton ecosystem drew 

 the top few articles. Our readers constantly leveled up their crypto knowledge, especially in 

The Topics You Couldn't Stop Learning About

Your curiosity took the wheel this year, navigating through topics like a pro. Your top picks? A ride through this year’s crypto trends that had you on the edge of your seat. 

 topics was our readers' favorite pastime, and it's no surprise given Bybit’s exciting 

 is a hot topic, after all, we are the second-largest crypto exchange by trading volume. 

, the talk of the town for the whole year, is rightfully in the top picks, as is 

, which had a stellar year and also broke ATHs multiple times. Finally, rounding up the top six are 

You joined the ranks of the crypto curious, rallying behind campaigns that not only educated but also inspired action. These were the campaigns that made you feel part of something bigger, turning learning into a community event.

 and generated over $100 billion in trading volume in the competition’s fourth edition. Next is Bybit’s 

, testament to the ever-growing popularity of trading bots. Bybit’s 

 introduced newcomers to the world of trading, while Ton enthusiasts got their hands on over $200,000 in airdrops during the 

Like a true crypto adventurer, you've climbed the ranks of knowledge with our R2E courses. These were your go-to guides, turning you from a rookie to a crypto sage. 

In celebration of a significant milestone, 

 course was one of your top picks. Speaking of milestones, the launch of 

 were popular courses too. You also loved the 

The Bybit Learn Report That Was Your Crypto Bible

Among the sea of reports, one stood out as your beacon of insight. It wasn't just data; it was the story of the year, the one report that had you nodding in agreement and scribbling notes for future reference.

 report took top spot amongst Bybit Learn readers. As the crypto markets heated up, our 

 report offered you the insights to navigate through the volatility. The U.S. election had everyone on edge, and our 

 helped break down the implications for crypto. We also dissected the derivatives market in our 

 report, giving traders the edge. Our recently launched 

 shed light on crypto whales. And let's not forget to celebrate 

 report — a testament to our journey together.

Live and in action, you tuned into the livestream that felt like the live concert of the crypto world. The energy, the insights, the community interaction - this was where you felt most connected.

, giving you the lowdown on their winning strategies. Then, we caught the wave with 

, sharing tips on how to capitalize on those market highs. Our 

 session introduced a fun way to engage with crypto right from your fingertips. For those of you diving deep into charts, 

 levelled up your technical knowledge. We also explored broad strategies in 

As we look forward, the horizon seems bright and buzzing with potential. 2025 is shaping up to be a year where the crypto narrative writes new chapters.

In 2025, many are watching for a significant shift in the regulatory landscape, particularly with Donald Trump set to assume office in January 2025. Trump’s recent 

 of pro-crypto candidates, such as David Sacks as his "White House A.I. & Crypto Czar," could spur a resurgence in innovation in the US. 

Many experts predict that there will be more defined regulations globally, particularly in regions like Europe and the United States. Clearer regulatory frameworks are expected to spur institutional adoption, providing a level of certainty that could attract more traditional investors to the crypto space.

Technological advancements and new use cases for blockchain technology, such as AI integration, could be significant drivers. The integration of AI in cryptocurrency projects, particularly in the recent growth of 

, could see AI and blockchain establish itself as a major trend.

Finally, the broader economic environment, including potential Fed rate adjustments and geopolitical stability, could contribute to a bullish market for cryptocurrencies in 2025.

You asked and we listened. Bybit Learn is set to launch a community hub for you, our readers! Comment, like, share and engage in interesting conversations with fellow readers on the hottest topics in crypto.

Love our livestreams? Get ready to tune in to even more engaging and interesting content from our team, from helping you understand markets to master Bybit products.

Finally, look forward to more partnerships and reports from esteemed partners to help you navigate the choppy waters of crypto.

Next year promises to be a blockbuster, with new courses, exciting campaigns and groundbreaking reports. Like waiting for the next season of your favorite show, you're in for more learning adventures that will redefine your crypto journey.

Beginner

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Bybit Learn Wrapped 2024

Suilend is a decentralized lending protocol built on Sui that enables users to borrow and lend crypto assets. Learn more about how it works here.

 (DeFi), complex lending protocols and high fees create barriers for users seeking to borrow and lend. Suilend was built by the team behind the successful 

 lending protocol with over $400 million in 

 with a clear mission to make DeFi lending simple, secure and accessible.

This article explores Suilend's innovative features, its native SEND token and its reshaping of DeFi on Sui’s blockchain. We'll delve into Suilend's history, examine its unique offerings and analyze its potential as an investment opportunity in the growing Sui ecosystem.

 is a decentralized lending protocol built on Sui that enables users to borrow and lend crypto assets, with features including multi-asset collateral support, dynamic interest rates, risk-isolated lending pools and 

Launched in March 2024, Suilend represents Solend's strategic expansion from Solana to Sui. The Suilend team brings proven expertise to Sui's growing ecosystem from Solend, the tenth-largest protocol on Solana, with $432 million in TVL and over 170,000 users across 70 assets (as of December 2024).

The project is led by pseudonymous Solend founder Rooter, and combines expertise from 15 team members (including 11 developers from Morgan Stanley, Bell Labs and IBM). The move to Sui was driven by the blockchain's advanced capabilities and the Move programming language's superior tooling.

Suilend's vision has attracted $6 million across two funding rounds, with Robot Ventures leading the latest $4 million investment. Suilend has already become the largest DeFi protocol on Sui, with a 

Suilend aims to transform DeFi lending by removing traditional barriers to entry. The protocol tackles the key challenges of high transaction costs that eat into profits, complex interfaces that deter adoption and the depegging risks common in liquid staking.

Leveraging Sui's architecture, Suilend achieves unprecedented performance with 297,000 

 and 480-millisecond finality. The protocol combines this speed with comprehensive features, such as isolated lending pools, a points system and its innovative 

With a strong focus on security, Suilend has undergone thorough audits by leading blockchain security firms Zellic and OtterSec. This commitment to security and user-focused features establishes a trusted foundation for DeFi innovation.

Suilend operates through distinct categories of lending pools: main assets, which undergo rigorous due diligence, and isolated assets for newer or more volatile tokens. Users can lend their assets to earn interest or borrow against collateral, with all transactions automated through 

For main assets, users can freely combine different tokens as collateral. However, isolated assets require dedicated collateral that can't be shared across positions, protecting the protocol from risk spillover. Borrowing limits for isolated assets are more conservative and require closer monitoring, due to potential price volatility.

The platform employs a dynamic interest rate model that adjusts based on pool utilization. Rates typically fluctuate more for isolated assets, depending upon market demand and availability. Suilend implements a simple one-time borrowing fee structure with no hidden charges in order to keep costs predictable.

Beyond traditional lending, Suilend integrates the SpringSui liquid staking solution for instant unstaking of SUI tokens. Users can stake SUI to receive sSUI tokens, which maintain their peg through SIP-33 implementation and can be used as collateral within the protocol.

Robust security measures and automated risk management systems protect user assets at every step. The protocol monitors positions continuously, adjusting requirements based on market conditions, and ensuring users maintain adequate collateral to prevent liquidation.

Suilend offers a comprehensive suite of features to enhance efficiency and user benefits.

Suilend operates two types of lending pools: main assets and isolated assets. Main assets undergo rigorous due diligence, and support combined collateral positions, while isolated assets operate in separate pools to contain potential risks from newer or more volatile tokens.

Each pool features specific risk parameters and collateralization ratios, allowing users to earn yields while maintaining security. Through this dual-pool system, Suilend balances high-yield opportunities with robust 

Suilend incorporates an efficient swap mechanism, allowing users to exchange tokens directly within the platform. This integration reduces the need for external DEXs and minimizes transaction fees to enhance the overall user experience.

Suilend facilitates asset transfers between different blockchain networks through its 

 functionality. The system ensures secure cross-chain transactions to expand accessibility while maintaining robust security measures.

 system distributes 10 million points daily to active users, based on deposit amount and duration. These nontransferable points unlock benefits, such as reduced borrowing rates and future governance participation, to incentivize long-term platform engagement.

SpringSui represents Suilend's open-source standard for liquid staking on Sui. Users who stake SUI receive sSUI tokens, which can be traded, used in DeFi or instantly converted back to SUI, thus eliminating the traditional multi-day waiting period for unstaking.

Built on protocol upgrades SIP-31 and SIP-33, SpringSui solves the depegging risks common in liquid staking. The platform will soon enable other teams to create their own liquid staking tokens, driving LST adoption and promoting liquidity across the Sui ecosystem.

Suilend has achieved significant milestones since its inception by following a strategic development plan. The protocol launched on Sui's mainnet in March 2024, quickly establishing itself as the chain's largest lending protocol.

Key achievements include securing $6 million in funding across two rounds, reaching nearly $470 million in TVL and generating monthly revenues of $820,000. The platform has also successfully integrated multiple assets and launched innovative features such as the SpringSui LST standard.

, a capital-efficient AMM that lends idle assets for additional yield, in Q1 2025. The protocol also aims to expand its ecosystem through enhanced governance mechanisms, additional asset support and deeper integration with other Sui protocols.

SEND, Suilend's native token, has a total supply of 100 million tokens distributed with a community-first approach. The allocation 

 65% for the community, 20% for investors and 15% for the team.

A significant portion (40%) of SEND will be distributed through the Mdrop mechanism, with 20% going to points holders and early users, 5% to ecosystem communities and 15% to SAVE holders on Solana. When users redeem their SEND allocation, they receive mSEND tokens, which they can use to claim SEND.

Mdrop maturities vary by allocation type: three months for Points and Ecosystem holders, six months for Team and Investors, and 12 months for SAVE holders. After these periods, users can claim their full SEND allocation without penalty. To ensure sustainable token distribution, investor tokens unlock over two years and team tokens over four years.

Given Suilend’s recent market entry, prominent crypto analysts haven’t yet published detailed price forecasts for the SEND token. Several key factors will likely influence its value: Suilend's continued platform growth, broader Sui ecosystem participation and overall cryptocurrency market conditions.

 token is currently trading at $1.20, with a fully diluted valuation of $138 million and $456 million in TVL (as of Dec 12, 2024). Since Suilend has already achieved a larger TVL of $470 million, its protocol could potentially support a similar or higher market capitalization.

Looking to trade Suilend tokens? Bybit now offers the SEND/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

While Suilend has demonstrated impressive growth and strong fundamentals in the DeFi lending space, investors should carefully consider both its strengths and risk factors before making investment decisions.

With its institutional backing, proven team experience and innovative approach to DeFi lending, Suilend (SEND) shows significant potential. However, potential investors should 

 and consider their own risk tolerance before investing.

Suilend tackles key challenges in DeFi — namely, high costs and complexity — by leveraging Sui's technology to create a more accessible platform. With innovations like the SpringSui LST and dynamic interest rates, Suilend could mark a turning point for DeFi adoption by making lending and borrowing accessible to users previously deterred by technical barriers.

Intermediate

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Suilend (SEND): Lending and Borrowing Made Easy on Sui

Avalanche has secured a $250 million locked-token sale led by Galaxy Digital, Dragonfly, and ParaFi Capital, with over 40 top investment firms participating.

The S&P 500 fell 0.54%, pressured by a hotter-than-expected inflation report and declines in major stocks such as UnitedHealth and Adobe. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 0.24%, with Bitcoin dropping by 1.45% and Ether rising by 1.00%, in the past 24 hours.

Today's top performer is AAVE, which surged 17.1% following the anticipation of Aave V4, a modular hub-spoke design for enhanced scalability and yield.

Aave (AAVE), founded in 2017, is a decentralized lending platform on Ethereum, allowing users to lend, borrow, and earn interest on 17 cryptocurrencies without intermediaries. It uses smart contracts, requires collateral for loans, and issues interest-accruing aTokens. Aave also offers features like instant loans. 

 introduces a modular "hub-spoke" design, with a central Liquidity Hub and flexible Spokes for diverse collateral types. This streamlines the protocol, enhances scalability, and allows interconnected hubs, enabling higher yields and risk-adjusted borrowing. It’s a leap forward for efficiency and adaptability in DeFi.

Check Out the Latest Prices, Charts, and Data of 

 led by Galaxy Digital, Dragonfly, and ParaFi Capital, with over 40 top investment firms participating. This funding follows the launch of the Avalanche9000 testnet, which marks a major milestone ahead of the upcoming mainnet upgrade. The Avalanche9000 upgrade will reduce Layer 1 blockchain deployment costs by 99.9% and transaction costs on the C-Chain by 25X. Additionally, it introduces the $40 million Retro9000 grant program to support developers. The upgrade aims to enhance scalability and innovation, positioning Avalanche as a leader in decentralized finance and blockchain scalability.

Yesterday, Bitcoin Spot ETFs recorded a net inflow of $165.9M, driven by $214.3M from non-GBTC sources, partially offset by a $48.4M outflow from GBTC.

 has launched and runs for under 4 months, culminating in a points-to-airdrop conversion event. Participants from Season 1 receive a 1.25x boost in trading and liquidity activity. Top 250 Diamond League players can apply for the exclusive "Chad Traders" Discord role.

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Avalanche Secures $250M Investment to Drive Avalanche9000 Upgrade and Enhance Blockchain Scalability

CoW DAO (COW) shields DeFi traders from MEV, LVR, and other exploits, offering value optimization through solvers, intent-based trades, and secure AMM tools.

 (DeFi) industry provides a variety of crypto income opportunities for traders, including liquidity provision, token trading, lending, automated yield optimization and more. While traders' potential profits on DeFi protocols might be higher than what’s achievable in traditional finance (or TradFi), there are many sources of losses, both hidden and explicit, on these platforms. 

Despite potentially high-profit opportunities, DeFi traders have to deal with unique threats, such as 

 (LVR) and more. Few traders, even among seasoned DeFi veterans, can totally avoid losses and revenue leaks caused by these threats. For newbie traders, these unique DeFi exploits can be ruinous early in their trading careers.

CoW DAO is a decentralized platform that shields traders from a variety of DeFi exploits and inefficiencies by offering protection against MEV, LVR, transaction ordering–based manipulations and other potential sources of losses caused by parties such as 

The platform features a decentralized solution that finds the best prices for your crypto trades based on intent-based transactions and batch auctions — CoW Protocol — which is an MEV blocker and an 

 (AMM)–based crypto exchange that protects 

 (CoW) is a decentralized platform that aims to provide trading efficiency and security tools via a completely decentralized and permissionless 

CoW Dao consists of three key components: 

The platform's origins date back to April 2021, when the CoW Swap 

 (ETH) blockchain. Founded by Anna George and Felix Leupold, CoW Swap specialized in offering crypto swaps protected from MEV, a form of exploit in which blockchain validators or bots choose specific ordering of transactions in order to extract maximal value for themselves, typically at the expense of crypto traders. Originally, CoW Swap (and CoW Protocol, which it was based on) was part of 

, a decentralized ecosystem devoted to the development of the Gnosis (GNO) 

In March 2022, CoW Protocol raised $23 million in funding and 

 to form an independent entity — CoW DAO. Over the following couple of years, the project introduced more tools and solutions designed to protect DeFi traders from security risks like MEV, LVR and sandwich attacks, which are common forms of exploits on DeFi platforms that we'll cover in further sections of this article.

CoW DAO's major product, CoW Protocol, is a solution that finds optimal deals for token traders by utilizing a network of solvers, which are decentralized entities responsible for scanning the broader Ethereum ecosystem and offering the best possible rates on the user's intended transaction. The protocol batches user trade intents and auctions them off to solvers, who place bids to win the auction and have the right to process the batch on offer.

 and sandwich attacks, as well as common exploits used by MEV bots and validators to manipulate asset prices via transaction ordering and profit at traders’ expense.

CoW DAO's third major product, CoW AMM, is a DEX in which 

 are constantly rebalanced to avoid losses to LPs arising from arbitrageurs' activity. CoW AMM prevents arbitrage bots from exploiting token price inconsistencies between different pools, an activity known as LVR that leads to losses for LPs.

CoW DAO's suite of products offers numerous benefits to DeFi users that include the following.

The protocol's network of solvers scans the 

 environment accessible to them, which includes Ethereum and 

 (EVM)–compatible chains, to find the optimal price for the user's intended transaction. Some solvers may even be able to access 

Moreover, the auction system encourages solvers to compete to offer the best prices possible. As a result, users can access much more competitive rates than they would by manually scanning the Ethereum ecosystem for suitable deals.

Many market participants view intent-based transactions as superior to the standard order execution system. Instead of placing an order immediately, traders state their intents — often in meticulous detail — then wait for solvers to execute their transactions via the most optimal path.

Additionally, CoW DAO supports some of the most versatile and sophisticated order types available in the intent-based trading niche. These include 

, programmatic orders (which involve automated trading) and order types unique to CoW DAO.

As mentioned, CoW DAO's products are designed to shield token traders and LPs from some of the most common and devastating MEV security exploits — LVR, sandwich attacks and other types of transaction ordering-based manipulations. It's been estimated that countless MEV exploits have resulted in well over $1 billion in losses on Ethereum, a figure that highlights the dangers of these attacks for the DeFi user community.

Users of CoW Protocol submit their order preferences as intent-to-trade messages. The messages typically specify the asset(s) involved, as well as additional conditions to be met, e.g., a certain threshold swap rate above which the user won't want to proceed with the order. The underlying protocol bundles multiple intents into a batch, which is then auctioned off to the solver network.

Solvers bid on each auctioned batch, proposing the best rates at which they can deliver the requested transactions. An auction's winner is determined based on the total surplus value proposed by solvers, which means the solver that can deliver the highest surplus wins the auction and gets the right to process the batch. The winner executes the batched transactions on-chain via the most optimal routes, platforms and pools.

The use of solvers saves users time and delivers the best possible deals. Additionally, solvers are much more adept at avoiding MEV traps and other vulnerabilities, compared to an average DeFi user. Moreover, the batched processing mode also creates opportunities for so-called Coincidence of Wants, or CoW.

 (CoW) is an economic phenomenon whereby two parties — each one having something that the other party might want — enter into a mutually beneficial, direct transaction, exchanging the goods they’d like to acquire without incurring liquidity provider fees (and also reducing gas costs).

The project’s team considered CoW so fitting to the platform's 

 that it was this economic phenomenon — not the world's most popular large livestock animal — that inspired the platform's brand name, CoW.

CoW Protocol's intent-based system is capable of supporting several order types, some of them quite sophisticated. Order types currently available via CoW Protocol include the following:

CoW Swap, the platform's interface for users to conduct token swaps and place limit and TWAP orders, covers assets across three mainnet platforms — Ethereum, Gnosis and 

An MEV Blocker is a security tool for your wallet that protects you from MEV attacks. MEV exploits are among the most common sources of losses for DeFi users. They come in different varieties, but are all based on some form of transaction order manipulation by MEV bots or blockchain validators. Three common MEV attacks the blocker tool protects you from are sandwich attacks, frontrunning and backrunning.

In a typical sandwich attack, a validator might target a genuine trader's transaction as it enters the 

 — a temporary area where blockchain transactions are held before being fully processed by validators, and included in the chain's immutable ledger of records. The validator then places two orders: one queued before the targeted transaction and one immediately after.

The frontrunning order buys the asset that the trader would like to acquire while its price is still low, and the validator's buy order then increases the asset's price in the pool — since any increase in demand for an asset leads to its price appreciation.

Following the frontrunning transaction, the trader's order is executed, with the trader acquiring the asset at the newly increased price. The validator's backrunning order, placed immediately after the trader's transaction, is designed to sell the targeted asset, as the sell order leads to the decline of the asset's price in the pool.

The malicious validator then buys the targeted asset at a lower price and sells at an inflated price, pocketing the differential. In turn, the trader buys the asset at a higher price and then ends up owning the asset following its price drop. While the culprit (the validator) profits, the victim (the trader) suffers losses.

Thus, the culprit essentially sandwiches the victim's transaction between two exploitative orders, hence the name — the sandwich attack. Frontrunning and backrunning MEV attacks are partial sandwich attacks whereby culprits try to extract profit by placing only one exploitative order either before or after the victim's transaction, respectively.

In the current example, the culprit is capable of carrying out the exploit, as validators can influence the order of transactions included in a block.

Other entities that may not have direct influence on the order of transactions, such as specifically designed MEV bots, can also execute sandwich attacks by trying to prioritize their malicious orders, either by paying high gas fees or by directly conspiring with corrupt validators.

CoW DAO's MEV blocker protects users from sandwich, frontrunning and backrunning attacks, thereby neutralizing their devastating effects.

 provides unique protection to LPs against LVR, a loss incurred by LPs due to arbitrageurs' activity. In a typical constant function automated market maker (CF-AMM), arbitrageurs can exploit the price difference for an asset between pools on 

. If an asset's price becomes "stale" in the AMM's pool — that is, if it differs from the asset's rate on other exchanges — arbitrage bots rush to exploit the difference, causing losses to LPs.

CoW AMM protects you from LVR by introducing a different form of AMM, the

 (FM-AMM). CoW DAO's AMM processes transactions in batches, executing all trades in a batch at the same uniform price. This price ensures that the AMM "moves up the curve" with each trade, regardless of arbitrageurs' activities.

CoW DAO's native cryptocurrency, the COW token, is designed to support the platform's 

 processes, and uses a multistage process for governance. Initial discussions related to any changes to the protocol are discussed online via the CoW DAO forum, where community members, CoW DAO's core team and other parties can provide their input. 

The forum is designed for various discussions and announcements, such as details on the platform's 

 (CGP), governance issues and CoW DAO periodic gatherings. Following the forum discussions, change and improvement proposals may be put up for final voting. Holders of CoW tokens have the right to participate in the votes, serving as the ultimate decision-makers on any modifications to the protocol and its products.

COW is a supply-capped asset, with a total and maximum supply specified at one billion. The token's supply distribution shares are per the chart below.

 as a USDT-based Perpetual contract. You can trade COW with up to 50x leverage, using products like 

As of Dec 13, 2024, the COW token is trading at $0.649, which is 70.7% lower than its ATH of $2.22 on Mar 28, 2022, and over 1,500% higher than its ATL of $0.03987 on Nov 9, 2022.

Long-term price forecasts for COW are generally bullish. DigitalCoinPrice 

 to hit a high of $1.66 in 2025 and $4.83 in 2030, while CoinCodex 

 COW will surge to a high of $2.81 in 2025, falling slightly to a high of $2.35 in 2030.

Coin swaps and liquidity provision in DeFi are now moving beyond their basic functionalities, with advanced security and value maximization high on the list of users' demands. CoW DAO is among the champions of the move toward more sophisticated options for traders and LPs. Its protocol provides unique value optimization benefits, thanks to its use of a solver network and batched auctions.

CoW DAO's MEV blocker and CoW AMM are also great innovations that provide much-needed protection against MEV bots and LVR. Any trader or LP aware of the devastating effects of MEV and arbitrage bots will undoubtedly appreciate these products.

Regardless of your experience level when it comes to DeFi, CoW DAO can deliver value during your trading and liquidity provision activities. At the end of the day, avoiding losses from MEV and LVR might just be that boost to your DeFi performance you've been looking for. 

Advanced

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CoW DAO (COW): Community-Driven DeFi Protection

Bybit Learn

Crypto Insights

blockscholes

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.

Bybit X Block Scholes Crypto Derivatives Analytics Report (Dec. 11, 2024)

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BTC’s rejection of prices above $100K and ETH’s downward bounce near $4K have had a significant impact on derivatives markets. The pullback in spot prices intensified due to liquidations of overleveraged long positions in perpetual swaps, leading to a decline in open interest, particularly in ETH, and a reset of previously high funding rates to lower, yet still positive, levels. 

In the futures market, open interest remains below pre-November 2024 expiration levels, with positions concentrated in the December end-of-year contract. Meanwhile, perpetuals funding rates have been recalibrated following the liquidation wave. In options, ETH’s term structure is inverted, contrasting with BTC’s flat shape, as realized volatility has exceeded forward-looking expectations for the second time since late September.

Please check out the report’s highlights.

The surge in ETH perpetual positions that contributed to last week’s increase in open interest has now reversed. This shift coincides with a sharp decline in funding rates for the contracts, suggesting it was driven by the liquidation of overleveraged long positions. Notably, despite a similar drop in funding rates for long positions, activity in BTC perpetual contracts has remained mostly stable throughout December 2024, spiking only during BTC's brief rise above $100K late last week.

The previously high and exuberant funding rates in nearly all perpetual markets (as noted in last week’s analysis) have subsided following a substantial liquidation of heavily leveraged long positions. Although this shift reflects much lower levels of bullish positioning, funding rates haven’t plummeted to significantly negative levels after the flash sell-off, and are currently trading sideways around 0.01%. This behavior suggests a reset in leveraged exposure, typically seen when expectations for further spot rallies become overly optimistic.

Unlike the balanced levels in BTC options markets, ETH's open interest remains tilted toward bullish calls, primarily set for December’s end-of-year expiration. However, trading volumes have decreased during the recent period of sideways spot price movement. The volatility term structure remains inverted, as longer-dated volatility expectations remain anchored around 70%, while shorter-dated expirations have reacted to spot price fluctuations following the Nov 5, 2024 U.S. elections.

Bybit X Block Scholes Crypto Derivatives Analytics Report (Dec 11, 2024): ETH Perp Positions Fall as ETH Options Still More Bullish Than BTC Options

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