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

GameFi

Altcoins

Explainers

StarHeroes is a blockchain gaming project that offers dynamic storytelling, complex gameplay and exciting competitions. Learn more about how it works here.

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Competitive gameplay and esports are currently two of the biggest trends in modern gaming. Many crypto enthusiasts have noticed this trend and hope to take advantage of it by combining PvP (player vs. player) games with 

 design. One intriguing example of competitive 

. By blending traditional gaming design with blockchain technology, its team hopes to create a world that's both engaging and profitable. If you're interested in learning more about StarHeroes, explore this guide to see how its project works.

 is a blockchain gaming project that offers dynamic storytelling, complex gameplay and exciting competitions. Users can compete in a multiplayer, third-person environment and earn STAR tokens.

 began in 2020 as a project spearheaded by Maverick Milkowski, a 

 expert who realized that many gamers were interested in competitions that combine blockchain design with esports. This project attracted a lot of positive attention, and it became the first blockchain game to get a grant from Microsoft.

In addition to investments from Microsoft, the early 

 team was also promising enough to interest

 scaling solution is best known for being the home of gaming powerhouse Animoca Brands. Beginning in 2022, 

 ecosystem. With Immutable X's backing and Microsoft's resources, 

 was able to build a team of developers with a history of working for studios like Ubisoft, CD PROJEKT RED

 team hopes to solve many problems in the modern gaming industry:

StarHeroes is a free-to-play, multiplayer fighting game that players can access online. Every player has their own ID linked to a 

 is free to own, and boasts multiple game modes. 

 mode places you in an online multiplayer ranked game, in which player actions are tracked on a leaderboard. Meanwhile, 

 game mode allows people to play offline with bots. 

 mode so that people can choose to play either with other players or bots. While 

 mode lets players increase their rankings, 

 modes won’t have any effect on player rankings.

 players can only acquire STAR tokens in the form of rewards for their in-game actions. The STAR token functions as both the in-game and out-of-game token for 

. Players can use it to purchase NFTs of weapons and skins, and also trade it as an investment.

 system is its immersive gameplay, boasting several solo and multiplayer modes, and encouraging competitive gameplay. Alongside the free-to-play game, StarHeroes strives to improve player experiences with a comprehensive suite of web3 services.

Players can collect Heroes NFTs that let them access immersive gameplay and story options. In addition, they can acquire Lands NFTs that allow them to 

. Players have true ownership over these digital assets, and can trade or use them to create their own unique strategies for gameplay.

 STAR tokens is the golden ticket to passive income. The game plans to enhance player experience by eventually adding the ability to temporarily lock tokens, which could let players earn rewards even when they aren't playing the 

 doesn't feature an integrated token swap that lets players purchase STAR tokens via the game. However, its team plans to partner with exchanges in order to bring 

 capabilities to the game. This addition may make it easier to exchange STAR tokens for 

, or to purchase STAR tokens for your in-game plans.

To attract attention and distinguish itself from other games, 

 in January 2024. Unlike some other cryptos, 

 isn’t just giving tokens away to any interested investor. Instead, you can only earn STAR tokens by participating in the game. The airdrop campaign ended on Mar 8, 2024.

team has spent the past two years focusing on blockchain and game development. Starting in 2023, they ran alpha and beta sessions for players to explore the system and catch potential bugs. Currently, 

 is in the early access stage of its road map. You can apply to join the game and check out the system, but it's not fully open to the public yet.

The game’s creative team is planning the full game launch for Q2 2024. Once the game is live, 

team will be focusing on the esports aspect of its game, planning to run tournaments and events to attract fans and celebrate the best players. Its future may also include plans for more games, tie-ins to related games and additional game mode options.

. Essentially, STAR is a token that can only be minted by playing 

. Once it's created, players can use STAR to purchase game items, adjust gameplay difficulty and vote in the 

Initially, there will be a total of 700 million tokens, but 

 will have periodic halvings to reduce the amount of STAR available. This will help prevent inflation and keep players from flooding the market. The tokens are being distributed as follows:

After the STAR airdrop concludes, StarHeroes is partnering with Bybit to open their web3 gaming token up for sale. To get started, you’ll first need to 

, fund it with cryptocurrency and navigate to the 

 isn't the trendiest cryptocurrency game launch of the year, it might be ideal for investors whose strategy involves taking risks and purchasing underrated coins. 

' quietly impressive background includes many excellent developers who have crafted a detailed virtual world with some exciting digital assets. 

 is able to launch an eSports tournament, it might be able to generate some positive press and increase its token's value. Just keep in mind that this token might get overlooked among all the other related games available right now. Investors need to 

 gaming system is an exciting addition to the web3 gaming world. Its game development includes an intriguing blend of competition, fighting and storytelling. 

 might struggle to stand out from other play-to-earn games, but its detailed virtual world and developing multiplayer modes could attract some gamers. If this system can turn its stellar player experience into sufficient online hype, the STAR token may do surprisingly well.

StarHeroes (STAR): Advancing Web3 With Free-to-Own Gameplay

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards