AI Summary
Show More
Quickly grasp the article's content and gauge market sentiment in just 30 seconds!
Key Highlights:
Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.
With fewer macroeconomic releases in early 2025, the crypto market has experienced lower volatility and stagnant spot prices. This has led to decreased implied volatility in derivatives, a steepening term structure and stable open interest.
However, ETH options still anticipate continued price volatility. Historically, such sideways movements have seen altcoins underperform, reflected in disappointing funding rates in the derivatives market.
Please check out the report’s highlights.
Without clear narratives or volatile spot price movements, open interest in perpetual swap contracts has remained flat over the past two weeks, with trade volumes also subdued in this low-volatility environment. Notably, SOL's perpetual positioning hasn’t significantly changed, even with its spot price 35% below its all-time high from late January.
On February 17, ETH’s spot price surged 6%, contrasting with the sideways movement of other crypto assets, but those gains were nearly reversed within 24 hours. This led to higher realized volatility in derivatives, and a flatter term structure as compared to BTC. Traders continue to assign a premium to short-dated ETH options, whose volatility has been higher than that of BTC for some time. Additionally, ETH option trade volumes have spiked, with calls reaching $0.25 billion on Feb 15, 2025.
Since reaching its all-time high in late January 2025, Solana's spot price has declined, leading to muted options markets with low activity in both calls and puts. Open interest is balanced between upside and downside, and is primarily focused on longer-dated positions, reflecting a lack of interest in short-term trades amidst disappointing spot market activity.