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

Bybit Learn

Crypto

There are a huge variety of crypto discord servers but are they all good? Here are some of the top picks.

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In the rapidly evolving landscape of cryptocurrency, staying informed and connected is more important than ever. Market trends can shift within minutes, and new technologies emerge at an astonishing pace. As the crypto community expands, platforms that facilitate real-time discussions, information sharing and community building are becoming invaluable.

One platform that has gained significant traction in recent years is Discord, which has been transformed from a gaming-centric communication tool into a versatile hub for various interest groups. Crypto Discord servers have emerged as vibrant centers of knowledge, providing enthusiasts, investors, traders and newcomers with an unparalleled opportunity to engage, learn and collaborate.

What’s the Purpose of Joining a Crypto Discord Server?

At its core, a crypto Discord server serves as a virtual gathering place for individuals with a shared interest in cryptocurrencies to convene and discuss various topics. From fundamental concepts like blockchain technology and tokenomics to more specialized discussions about trading strategies, investment opportunities and emerging trends, these servers cater to a diverse audience.

Unlike traditional social media platforms or forums, Discord crypto servers offer a real-time, interactive environment that fosters immediate engagement. Users can seek advice, share insights and receive updates on market developments almost instantaneously, enhancing their ability to make informed decisions.

Beyond their informational value, crypto servers also provide a sense of community. Conversing with like-minded individuals who share your passion for cryptocurrencies can be intellectually stimulating and emotionally rewarding. Whether you're a seasoned trader looking for nuanced insights or a newcomer seeking guidance, these servers offer a space where everyone's voice can be heard and knowledge is freely shared.

The beauty of these servers lies in their inclusivity, catering to a broad spectrum of individuals.

Seasoned traders and investors can benefit from in-depth 

, advanced trading strategies and market insights shared within these servers. Engaging with other experienced individuals can help refine one’s trading techniques and broaden their understanding of complex market dynamics.

Crypto Discord servers offer an educational haven for anyone new to cryptocurrencies. Newcomers can seek guidance, ask questions and access valuable resources to build a solid foundation of knowledge before diving into the world of trading and investing.

Day traders can leverage the real-time nature of Discord to stay updated on market movements, breaking news and sudden shifts that can impact trading decisions. Immediate discussions and access to experts can be instrumental in executing timely trades.

For anyone who’s fascinated by the underlying technology of cryptocurrencies, these servers can be a treasure trove of discussions about 

 (DeFi) can find servers dedicated specifically to DeFi projects, 

 and other aspects of the rapidly evolving DeFi ecosystem.

The reliability of each crypto Discord channel largely depends upon the server itself and its community members.

While many servers have dedicated moderators who strive to maintain a high standard of discourse, misinformation and biased opinions can still find their way into discussions. Verifying information through multiple sources and cross-referencing any advice is essential before making investment decisions based on the content of these servers.

It's advisable to look for servers with a track record of providing accurate and well-researched insights, in order to ensure a reliable and credible source of information. Seek communities encouraging healthy and respectful discussions, and whose members are open to sharing the sources and reasoning behind their analyses.

Additionally, consider using these servers as a supplementary information source and conduct 

Here are some of the best servers that have garnered recognition within the crypto community.

TCC is a well-established crypto Discord server that offers channels catering to various aspects of cryptocurrency. From technical analysis to project discussions, its server provides a comprehensive platform for beginning and experienced traders alike. The server often hosts AMAs (Ask Me Anything) with notable figures in the crypto industry, allowing members to directly interact with experts.

This server is known for its emphasis on research and data-driven insights. It hosts regular discussions on market trends and ICO analysis, and conducts deep dives into different blockchain projects. With a focus on providing accurate and up-to-date information, Crypto Nation is a go-to destination for anyone who values well-researched content, or who is looking for up-and-coming crypto projects.

If you want to stay up-to-date with altcoins and emerging projects, Axion Crypto-Community is the place to be. The server's community frequently discusses both new and lesser-known cryptocurrencies. Members often share their research and opinions on potential investment opportunities.

CryptoTraders provides in-depth analysis and signals for experienced traders looking to navigate the volatile crypto markets more effectively. Its expert traders often share technical analysis, market sentiment and trade setups to assist members in making informed decisions.

DeFi Degens is a dedicated hub for everything DeFi. Members discuss yield farming, liquidity pools and the latest DeFi protocols. The server is known for its lively discussions and insights into the evolving DeFi ecosystem.

Watcher Guru offers a blend of educational content and market insights. The server's experienced members often share valuable tips for newcomers, while also diving into advanced trading strategies. Regular webinars and educational events make this server ideal for anyone seeking to enhance their crypto knowledge.

 (NFTs), discussing everything from art and collectibles to gaming and virtual real estate, and providing a creative hub for NFT enthusiasts, artists and collectors.

As its name suggests, this server belongs to beginners seeking guidance and resources to kick-start their crypto journey. Members can ask questions, seek advice and access beginner-friendly educational content. Cryptohub also allows users to incorporate different plug-ins, such as the ChatGPT command bot, and offers a dedicated 

 career section for users to explore opportunities. 

CryptoDads’ lively community centers on Bitcoin discussions, news and insights. Its platform covers a wide range of topics related to the world's first cryptocurrency, offering a blend of technical analysis and fundamental discussions.

Elite Crypto Signals concentrates on cryptocurrency strategies, technical analysis and market sentiment. Traders of all levels can benefit from the server's discussions on chart patterns, indicators and trading psychology.

Yield Farming Lab is a tightly-knit community centered on yield farming, 

 and optimizing returns in the DeFi space. Members often share their experiences, strategies and updates on the latest yield-farming opportunities.

Adding a touch of humor, r/CryptoCurrency is a fun and engaging server whose members share crypto-related memes and jokes, fostering a lighthearted atmosphere within the crypto community. It's a space where members can unwind and laugh while staying connected with the latest trends.

Most crypto Discord servers are free to join, allowing users to access a wealth of information, engage in discussions and learn from experienced members without cost.

However, some servers may offer premium tiers or subscription-based models that provide additional benefits, such as exclusive content, in-depth analysis or direct access to experts. It's important to carefully review the features and offerings of each server before committing to any premium memberships.

While premium tiers offer enhanced features, the free versions of these servers often provide a substantial amount of valuable content and insights. Users can gain significant knowledge and engage in meaningful discussions without a subscription.

In the ever-evolving world of cryptocurrency, staying informed and connected is crucial. Crypto Discord servers offer a dynamic real-time platform for enthusiasts and investors to engage, learn and share insights.

These servers cover various topics, from technical analysis and trading strategies to discussions about emerging projects and DeFi protocols. As with any online community, exercising caution, conducting thorough research and critically evaluating information is essential to ensure a fruitful and enriching experience.

Whether you're a seasoned trader or a curious novice, exploring the abovementioned Discord servers can expand your knowledge and network within the exciting realm of cryptocurrency.

12 Best Crypto Discord Servers for 2023

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards