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.

After mostly trading sideways at the end of April 2025, a US-UK trade deal sparked a crypto rally. BTC surged past $100K for the first time since February, but it’s ETH's performance that captured the derivatives market's attention. 

A 23% increase in ETH's spot price led to an inverted term structure and a spike in front-end volatility. The put/call skew for ETH shifted from a bearish bias to a nearly 10% skew toward OTM calls. Other sentiment indicators, such as perp funding rates and futures yield, also supported the rally. In contrast, while BTC's funding rates and skew have increased, its implied volatility remains low at 40%, over 30 points below ETH's 7-day implied volatility.

Please check out the report’s highlights.

ETH’s record performance since 2021 was propelled by positive term structure

ETH has significantly outperformed BTC and the top 10 cryptocurrencies, marking its largest single-day gain since May 2021. The options market has reflected this enthusiasm, with implied volatility for short tenors rising sharply and inverting ETH’s term structure, thus contrasting with BTC's muted, positively sloped structure. The 7-day tenor for ETH is now trading at a 33-point premium over that for BTC. 

While puts dominate BTC's open interest, ETH is seeing the opposite trend. On May 8, 2025, options volumes surged over $120M, more than double the typical monthly volume, with $60M more in calls than puts. ETH now boasts a positive futures curve and funding rates, as well as a strong skew toward OTM calls.

ETH sees exceptionally bullish put/call skew

ETH's substantial outperformance in the current crypto rally has led to bullish sentiment in its derivatives markets. Funding rates have surged, futures yields are strongly positive and the put/call skew has shifted significantly toward OTM calls, now close to 10%. This starkly contrasts with early April, when the skew was 20% toward OTM puts. Although ETH has underperformed (relative to BTC and other "ETH killers"), it has rebounded in this rally, with the ETH/BTC ratio rising after spending most of the year declining.

Open interest for Bitcoin options increased, with implied volatility remaining suppressed

The announcement of the new US administration's first trade deal, nearly 30 days into Trump's 90-day tariff pause, jolted crypto markets, pushing BTC back up above $100K. Surprisingly, implied volatility has remained suppressed, failing to invert BTC's term structure, with front-end volatility trading at around an 18-month low of 35-40%. On May 8, 2025, options volumes surged, with call volume reaching $189M, reversing last week's trend of higher put volumes. Meanwhile, open interest rose steadily to exceed $300M, the highest level this month, but remains significantly larger for puts than for calls despite the price increase.

Advanced

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Bybit X Block Scholes crypto derivatives analytics report (May 9, 2025): Ether’s put/call skew turns remarkably more bullish than Bitcoin’s

This article explores how Sign works, its flagship products (such as TokenTable, SignPass and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

Sign is an omnichain attestation infrastructure that empowers users and developers to verify real-world claims on-chain. Built for a more transparent and decentralized future, it eliminates the need to “just trust” and enables everyone to verify with cryptographic proof.

This article explores how Sign works, its flagship products (such as TokenTable and EthSign), its native token (SIGN) and how to trade SIGN on Bybit.

 is an omnichain attestation protocol designed to make it easy for anyone to verify the authenticity of any claim — 

. Whether it’s a document, credential or user identity, Sign transforms traditional trust models into verifiable, cryptographic attestations. 

Sign’s mission is to replace outdated, opaque validation systems with transparent, 

 proof — enabling a future where “verify” replaces “trust.” Through tools like schema registries and digital signatures, Sign empowers users to bring accountability and integrity to digital interactions.

Sign is developed by the team behind EthSign, a 

-native e-signature and agreement platform. Its core team brings deep experience in 

 development and cross-chain integrations.

The project is backed by top-tier investors, including Sequoia Capital China (now known as HongShan Capital Group), Mirana Ventures, HashKey Capital and Hack VC.

This strategic funding positions Sign as a foundational layer in the web3 infrastructure stack.

Sign allows users to create attestations — cryptographically signed statements that prove the validity of claims, such as credentials, achievements or actions. These digital proofs can be verified by anyone at any time, making them tamperproof and transparent.

Sign’s key technical elements include a schema registry that ensures consistent data formatting, digital signatures proving authenticity, and on- and off-chain attestations with support for revocation or updates

This system acts like a programmable layer for web3, bringing a new level of trust to identity, credentials and data exchange.

TokenTable is Sign’s flagship token distribution platform. It helps projects unlock, distribute and manage tokens transparently and securely at scale.

It uses Sign’s attestation engine to verify token unlocks, 

 and vesting schedules, ensuring traceable, auditable token flows.

SignPass is a blockchain-based identity solution that brings real-world credentials on-chain. One notable implementation is the Sierra Leone PR Card, used for the world’s first government-approved on-chain permanent residency program.

SignPass offers encrypted on-chain records for easy 

 verification, physical ID issuance for daily identity use and streamlined digital application systems for cross-border access.

It showcases the way blockchain can modernize public sector services worldwide.

EthSign is a decentralized contract signing platform that lets users create, sign and store legally binding agreements directly on-chain. It removes intermediaries and ensures documents are immutable and accessible.

EthSign reinforces Sign’s mission by bringing traditional documentation into the realm of verifiable web3 attestations.

The SIGN token is the native utility token powering the Sign ecosystem. It’s used for:

The total supply is capped at 10 billion SIGN, with 1.2 billion tokens in circulation. While the fully diluted valuation (FDV) sits above $746 million as of May 7, the circulating market cap is approximately $89.6 million. SIGN continues to gain traction across exchanges and developer networks.

SIGN is available for trading on Bybit via Spot trading and as a USDT Perpetual contract. Bybit offers up to 75x leverage for the SIGNUSDT Perpetual contract and supports secure, high-liquidity spot trading.

Start exploring the future of attestations with SIGN on Bybit today.

Intermediate

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Sign (SIGN): Web3 protocol for trustless attestation

Compliant trading means following platform rules and avoiding manipulative behavior. Learn more about how you can trade responsibly and compliantly on Bybit.

Crypto trading has come a long way from what used to be the domain of institutional players, and is now open to almost anyone with an internet connection. It’s easier than ever to buy and sell digital assets, try new strategies or build a portfolio from scratch all within minutes.

But with that level of access comes responsibility. As more people join the market, the need for fairness and accountability has become even more important. This isn’t just about price charts or profits — it’s about keeping the playing field level for everyone involved.

At Bybit, we take that responsibility seriously. We're here to offer the tools, safeguards and education you need to help you trade responsibly and to protect the platform from misuse.

This article describes what it actually means to trade compliantly, why it matters — and what can happen if things go off course.

Compliant trading means playing fair, following the platform’s rules, staying within the boundaries of what’s allowed and avoiding anything that could unfairly affect the market.

It’s not about avoiding risk: it’s about knowing what you’re doing, using official tools the right way and making sure your trades aren’t causing harm to yourself or others.

In short, compliant traders don’t just focus on their P&L — they understand that how they conduct themselves while trading matters. Responsible trading protects their accounts, keeps the platform stable and builds long-term credibility in the crypto ecosystem.

Why does responsible and compliant trading matter?

It’s easy to assume that compliance is only something platforms or regulators need to worry about. But in reality, every trader plays a part. When someone attempts to exploit the system — for example, by coordinating mass trades through off-platform channels — the consequences can ripple across the entire market.

In extreme cases, irresponsible trading behavior can:

And if the trades in question are linked to coordinated action, use of fake accounts or external bots? That opens the door to account freezes, compliance reviews and, in some cases, permanent suspension.

Bybit has a responsibility to act when the system is being abused — not just for legal reasons, but in order to protect honest traders.

Common examples of noncompliant or risky behavior

Some traders join Telegram groups or online communities in which KOLs (key opinion leaders) give out coordinated trading instructions (for example, “Buy token A now, sell it in an hour”). This practice isn’t just risky: it often involves a small number of insiders benefiting while the majority end up with losses.

When many people follow the same instruction all at once, it can artificially inflate the price of a low-liquidity token. The KOLs then exit at the top —while others are left with falling prices and unexpected liquidations.

Such a textbook case of market manipulation violates our Terms of Service and, depending upon jurisdiction, could violate financial laws.

Using bots or unverified trading strategies

Some Telegram groups may seem convincing, but trades coordinated off-platform are often unverified and may serve someone else’s agenda. 

 programmed to front-run trades, mimic pump-and-dump strategies or follow unverified signals can trigger compliance red flags and may lead to account restrictions.

Bybit does not support trading bots from unverified sources. They can also trigger flags in our monitoring systems, which may result in account suspension.

Using another person’s account or sharing login credentials — even if it’s with a family member — goes against both Bybit’s policies and global 

(AML) rules. It also opens the door to fraud, loss of funds and irreversible penalties.

Tips for responsible and compliant trading on Bybit

The good news is that there’s a better way to trade — responsibly, safely and with confidence, starting with the right tools, mindset and habits.

Use copy trading the way it’s meant to be used

 is one of Bybit’s most trusted features, and for good reason. It gives users access to professional traders’ strategies while maintaining full transparency. However, it only works if you follow verified 

These traders have been vetted and their stats are fully visible. You can view their P&L, risk settings and trade history. Bybit also provides built-in tools, such as 

 and staking products allow you to earn passive yield with minimal effort. These products are fully backed by our infrastructure and undergo regular audits, and are a compliant way to generate returns without chasing risky trades.

No matter how convincing a Telegram group may sound, remember that trades executed outside of regulated channels are unverified and often unaccountable. They may be coordinated for someone else’s gain.

 offers a wide range of articles and tutorials, covering everything from indicators and oscillators to advanced portfolio strategies. Before following any external signal, it’s worth spending 10 minutes to understand the rationale behind it. In trading, knowledge is your best form of compliance. Before you enter any position, ensure that you fully understand the asset you're trading, the current market conditions and the risks involved.

, never share your login credentials, and always enable two-factor (2FA) authentication. In addition, all trading activity should originate from your own account and remain under your own control.

Bybit’s systems are designed to flag irregular behavior. If your account is found to be engaging in prohibited activity, even unintentionally, you may be:

We take these steps in order to protect the broader user base and to uphold market fairness.

Being compliant doesn’t mean missing out on opportunity. In fact, it’s the opposite. It means you’re using the platform the way it was designed, with safeguards, transparency and trust. Shortcuts might look appealing in the short term, but they rarely end well. The most successful traders on Bybit are the ones who understand risk, stay informed and trade with integrity.

Take the time to learn and use the tools available to you. And remember: protecting your account starts with choosing how you’ll trade.

Beginner

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How to trade compliantly and responsibly on Bybit

Discover how DAI evolved into USDS under the Sky protocol—unlocking passive rewards, scalability, and a new era of DeFi with Sky Token Rewards.

In September 2024, MakerDAO, a pioneering 

 (DeFi) protocol, underwent a significant transformation by rebranding itself as 

 (SKY). This rebranding was part of the project's comprehensive strategy to enhance scalability, user engagement and regulatory compliance. The major changes that came with the rebranding include token upgrades, whereby the platform’s stablecoin, Dai, was upgraded to USDS (Sky Dollar) while the 

Let’s take a deeper look at USDS and its role on the Sky platform.

USDS (United States Dollar Sky) is the upgraded version of the Dai stablecoin, launched under the newly rebranded Sky protocol (formerly MakerDAO).

 Like DAI, USDS is a decentralized, overcollateralized stablecoin designed to maintain a 1:1 peg with the US dollar.

However, USDS significantly improves scalability, user incentives and regulatory positioning, making it a next-generation solution for DeFi.

One of the standout features of USDS as a stablecoin is that it creates 

 opportunities for its investors. With USDS, you can access the Sky Savings Rate (SSR) feature, which allows you to participate in the Sky ecosystem's governance by accumulating Sky Token Rewards (STR) (presented in the form of SKY tokens).

SSR also features a variable automated token accumulation feature, whereby you receive 

 to the SSR program. This passive earning potential offers a major advantage for users seeking yield without complicated 

Sky uses a dynamic model that adds USDS to the SSR pool every few seconds. Over time, the value of sUSDS in the particular pool increases. You can then opt to redeem your sUSDS for USDS, and receive the USDS you initially supplied in addition to the USDS equivalent you’ve accumulated.

These rewards serve as an incentive mechanism, enabling users to passively grow their holdings while supporting the health and stability of the Sky ecosystem.

Upgrading from DAI to USDS is straightforward. Users can visit Sky.money and initiate the upgrade directly through a noncustodial, user-controlled process.

The platform provides a simple interface on which users connect their wallets, exchange their existing DAI for an equal amount of USDS and instantly become eligible for yield accumulation and other Sky ecosystem benefits. There are no fees for the upgrade, and users retain full control of their assets at all times.

USDS isn’t just a stablecoin; it’s an evolution of DeFi money. With passive earning through Sky Token Rewards and a smooth, secure upgrade path, USDS sets a new standard for the way decentralized stablecoins can deliver value and financial empowerment to users worldwide.

USDS and DAI are both decentralized stablecoins originally developed under the MakerDAO ecosystem (now Sky). While they share the same core principle — overcollateralization and the maintenance of a 1:1 peg with the US dollar — USDS represents a major evolution of DAI, introducing additional incentives designed to enhance user experience, scalability and regulatory alignment.

DAI has long been a favorite in the DeFi ecosystem, allowing users to generate stablecoins by locking up crypto collateral such as 

. DAI features a savings program, the DAI Savings Rate (DSR), from which people can earn 

 (sDAI). While the DSR program is still running, upgrading to USDS lets you earn two types of rewards through the SSR program: sUSDS tokens and Sky Token Rewards (STRs).

In addition, USDS is well positioned to meet regulatory requirements, aiming for broader mainstream adoption while maintaining decentralization.

Below is a comparison table between DAI and USDS:

USDS is backed by collateral that’s deposited in Sky vaults by borrowers. In return, the reserves for these vaults are backed by three main assets: 

With a market cap of over $8 billion, USDS is the currently third-largest stablecoin after 

 is more complex than that of typical stablecoins, as it includes liquidation mechanisms and a peg-stability module. However, an audit of USDS’s smart contract in September 2024 didn’t report any significant risks with the stablecoin. Notably, S&P Global Ratings 

 of 4 out of 5, indicating constrained ability to maintain its peg under certain conditions. 

​Additionally, the proposal to include a freeze function for USDS, which bestows upon the Sky protocol the power to halt USDS transfers between wallets, has sparked heated discussions within the community, highlighting the ongoing conundrum of balancing security measures with principles of decentralization.

The evolution of DAI to USDS marks a major leap forward for DeFi. By combining DAI's trusted and overcollateralized model with additional passive earning opportunities through Sky Token Rewards, USDS empowers users to enjoy greater financial benefits with less complexity.

The streamlined upgrade process and stronger regulatory positioning set the stage for broader adoption and a more resilient future. As Sky continues to build, USDS represents more than just a stablecoin — it’s the foundation of an open, accessible and more rewarding financial ecosystem for everyone.

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From DAI to USDS: Unlocking an open Sky for a more rewarding future

Bybit Learn

DeFi

Explainers

Altcoins

Plume Network (PLUME) is a modular Layer 1 blockchain enabling seamless tokenization and compliant integration of RWAs into DeFi.

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 (RWAs) are a relatively new area within the blockchain industry. The niche of RWAs has seen some serious growth over the past two years, driven by the expectations of leveraging these assets to connect the worlds of traditional finance (TradFi) and 

 (DeFi). The use of RWAs is currently evolving from pure tokenization into more active applications within the broader crypto finance field. Several RWA-focused blockchain projects have been launched with the aim of putting these assets into active use on DeFi protocols.

Among the new projects in this area is Plume Network, a modular 

 blockchain that aims to create a demand-driven RWA ecosystem. Plume is committed to creating an environment in which physical and digital assets can easily be tokenized, compliance-checked and further used on DeFi platforms for yield generation, lending, borrowing and collateralization. By offering features like streamlined tokenization, smart wallets with advanced RWA management functions and data enrichment from external sources, Plume aims to become a leader in 

 (PLUME) is a modular, secure Layer 1 blockchain designed for streamlined tokenization and applications of RWAs. 

Plume offers the infrastructure to tokenize RWAs, have them automatically checked for compliance and further utilize the assets within DeFi protocols for lending, borrowing, collateralization and other common crypto finance functions.

Plume's tokenization engine, Arc, lets asset owners simplify the process of moving physical and digital assets on-chain. Smart wallets offered by the platform allow these tokenized assets to be further used and managed on external DeFi protocols. Additionally, Plume supports RWAs by integrating external liquidity and data enrichment sources. In short, the platform provides a comprehensive solution for asset owners to manage their RWAs, from moving them on-chain to actively deriving monetary value from their use within the DeFi industry. The project calls this active application of RWAs within the DeFi framework RWAfi, underscoring the tight integration of these assets with the world of crypto finance.

Plume Network launched its testnet in July 2024 after successfully raising $10 million in a seed-funding round. Within eight weeks of its testnet launch, Plume had attracted close to 3.8 million users and processed 265 million transactions.

As of the time of this writing in mid-January 2025, the Plume blockchain continues to operate in testnet mode, with its 

 expected to be launched soon. Plume’s road map for 2024–2025 focuses on the active development of the infrastructural foundations of the platform — its system of 

 and an asset tokenization engine. From 2025 to 2026, the project team plans to expand the platform's ecosystem of RWA classes and yield generation sources. After that, Plume envisions collaborations with TradFi entities to bridge the gap between them and the universe of DeFi.

The Plume project was founded in 2023 in San Francisco, California, by Chris Yin, Teddy Pornprinya and Eugene Shen.

Plume Network users can take advantage of a secure, streamlined process to bring their assets on-chain. Using a network of compliance verification partners, Plume conducts all the necessary regulatory and 

 (AML) checks relevant to each asset type. This optimized verification process gives RWA owners the certainty and confidence that their assets comply with all relevant regulations. Additionally, Plume uses ongoing transaction monitoring to identify suspicious or fraudulent activities related to RWAs to protect its users and the entire ecosystem.

Both physical and digital assets can be tokenized on Plume and converted to composable RWAs. “Composability” implies that the assets can be flexibly used in DeFi protocols without the need to re-tokenize them to fit the format of each individual protocol.

As Plume Network gears up for its mainnet launch and further infrastructure development, its project is in active discussions with several on-ramp and off-ramp providers to help realize its ambition of becoming a leading RWA platform. “On-ramping” refers to the functionality that lets users convert fiat currencies to blockchain-based assets. In contrast, “off-ramping” is the reverse process — the ability to convert crypto assets into fiat currencies for the purpose of taking funds off-chain. Both on-ramping and off-ramping are critical for supporting the tokenization of RWAs, their use within the crypto ecosystem and their possible conversion back to off-chain formats.

With the planned network of on-ramp and off-ramp service providers, Plume will enable its users to achieve greater flexibility in monetizing and managing their RWAs.

Following the tokenization process, Plume ensures that liquidity sources are available to leverage the newly tokenized RWAs. The project has partnered with numerous liquidity providers to help asset owners immediately use their RWAs. These partner liquidity providers allow Plume Network to leverage RWAs for 

Plume’s RWA Chain is the infrastructural backbone of the platform, designed to make the process of RWA tokenization and monetization as effective as possible. The chain is an 

 (EVM)–compatible Layer 1 network, with high levels of modularity and a consensus model — PlumeBFT — designed to optimize high-value, RWA-based transactions. 

Specific details of PlumeBFT have yet to be released by the project team, but its name suggests that it’s a variation of the 

 Byzantine fault tolerant (BFT) consensus model, which typically supports transaction processing and network security even in the presence of some maliciously acting validators. BFT-based models are generally regarded as highly fault-tolerant, a property that’s undoubtedly important when dealing with high-value RWA transactions.

Arc is Plume RWA Chain’s tokenization engine. It’s a full-stack, open-source engine that lets businesses tokenize their assets in full compliance with U.S. securities regulations. Arc features components for tokenization, on-ramping and off-ramping, identity verification, AML monitoring and secondary market trading.

As of January 2025, Plume Network provides early access to developers and asset owners to Arc, with the public release expected later in Q1 2025. In the early-access mode, issuers with yield-bearing assets over $1 million can use Arc for free.

Subject to third-party checks and regulatory approvals, Arc can be used to tokenize diverse assets, including public equities, ETFs, bonds, bank loans, carbon credits, private credit, corporate debt and more.

 that allows asset owners to easily manage their RWAs. It comes with various features, such as built-in compliance monitoring, gasless transactions for certain core operations, and access to around 20 DeFi protocols. As an RWAfi wallet, Plume Passport lets RWA owners directly leverage yield-generation and trading opportunities on partnering DeFi platforms.

Plume Nexus is the platform’s component for enriching on-chain data with information from external sources. Using a group of partnering 

 service providers (Seda, OpenLayer, Supra and Stork), Nexus sources data on financial and economic indicators, social trends and even weather patterns to provide richer insights to users of Plume Network.

Thanks to Nexus, Plume isn’t just a blockchain for tokenizing assets, but also an environment with comprehensive real-time analytics support for RWA users.

Plume USD is the blockchain’s USD-pegged 

, indirectly backed by the market’s two leading stablecoin assets, 

. Users can mint Plume USD by depositing these two stablecoins. Whenever required, they can reclaim their original deposits by converting Plume USD into these well-established stablecoins.

Plume USD is envisioned to support various applications via partnering DeFi platforms. These applications may include earning yield from RWAs, placing wagers within betting protocols, lending and borrowing against RWAs and more.

Nest is a staking protocol on the Plume blockchain that creates yield-earning opportunities for RWA owners. Using Nest, users can earn institutional-grade yields collateralized with RWAs. As of January 2025, the Nest protocol is a work in progress. The first set of yield-bearing vaults is expected to be launched soon.

Plume’s native token, PLUME, was launched on Jan 21, 2025. PLUME supports a variety of functions on the platform, namely:

 cryptocurrency, with a total and maximum supply of 10 billion. Upon launch, 20% of the total supply (2 billion) was released into circulation. The token's supply distribution shares are shown in the chart below.

 scheduled to coincide with its native token launch. In mid-January 2025, users had a four-day time window to register their claims, with PLUME tokens to be distributed upon the crypto’s launch, i.e., starting Jan 21, 2025. An additional 33% boost to the tokens airdropped at the token generation event (TGE) will be available to eligible users during the mainnet launch.

Users who qualify for the TGE airdrop include testnet users with loyalty miles, pre-deposit stakers and user communities of several partner DeFi platforms — Polymarket, 

 (ONDO), World Liberty Financial (WLFI), 

 (AIXBT) and some users of Backed Assets, Dinari and Swarm X.

The PLUME token is available on Bybit’s Spot market as a 

 stablecoin. You can also take advantage of the 

 campaign to grab a share of the 40 million PLUME prize pool.

Under the terms of the campaign, new users who complete basic identity verification can earn PLUME rewards by accumulating a deposit volume of at least 3,000 PLUME, or by depositing 100 USDT and trading 100 USDT worth of PLUME via their first trade with Bybit. Existing users can also qualify for rewards by trading at least 500 USDT worth of PLUME on Bybit’s Spot market. The campaign is valid through Feb 3, 2025, 9 AM UTC.

By streamlining the tokenization of diverse real-world assets (RWAs) and building a network of financial infrastructure partners, Plume Network is creating an inclusive financial ecosystem for RWA issuers and traders. The demand-driven integration of RWAs will undoubtedly lead to rapid adoption of these assets within the crypto industry.

Plume’s ecosystem isn't just a blockchain to tokenize RWAs — it's a comprehensive environment with compliance providers, liquidity partners and a versatile tokenization engine. With all these features on offer, Plume is gearing up to become a leading blockchain RWA enabler. Following the recent launch of the PLUME token, all eyes are now on the project's imminent mainnet debut.

Plume Network (PLUME): Building a Demand-Driven RWA Ecosystem

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