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

Investing

Do you have these signs to show that you're one step close to financial stability? Find out more.

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Imagine a life where you're free from constant financial worries and have the power to pursue your dreams without the nagging fear of running out of money. 

That's the beauty of financial stability. 

But what does it really mean to be financially stable? Is it solely about having a robust investment portfolio? Or is it about having a healthy emergency fund or being debt-free? 

The truth is that financial stability encompasses a combination of factors. In this guide, we'll explore the top signs that indicate you're on the path to financial stability. When you know the signs to look for, you gain a clearer understanding of your financial status. So let's dive in and discover the keys to financial freedom.

What Does It Mean to Be Financially Stable?

Financial stability means having enough money and resources to cover your current and future needs without needing to borrow or get significant help from others. It being financially stable also means having some extra cash saved up to handle unexpected expenses or emergencies, such as medical bills, car repairs or losing your job.

Being financially stable doesn't necessarily require being ultrarich or achieving all your financial goals. It simply means having a solid financial foundation to rely on so that you're not constantly struggling to make ends meet.

One of the ways to achieve financial stability is to invest your money wisely and diversify your portfolio. Investing in cryptocurrency is one option to consider, as it offers the potential for high returns and easy trading access. However, it's important to note the risks and volatility associated with crypto in a constantly changing market influenced by various factors.

While investing in crypto can lead to wealth, it can also result in losses. Success depends on factors such as the amount you invest, your understanding of the market and how well you manage risk. It's essential to recognize that crypto investments aren’t a shortcut to quick riches. Rather, they require a long-term approach involving patience, discipline and thorough research.

How do you know if you’re financially stable? The following are some clues to indicate you’ve reached a level of financial stability.

One of the most obvious signs of financial stability is that you don’t constantly worry about money. You don’t stress out about paying bills, how to afford your groceries or start saving up for your retirement.

Ideally, you have a budget that works for you, allowing you to cover your expenses and save for your goals. Maybe you don’t even have to track your budget regularly. 

You also have an emergency fund that can cover at least three to six months of living expenses in case of an unexpected financial situation. With a solid financial foundation, you can achieve some peace of mind knowing you have the resources to handle unexpected expenses and meet your financial obligations.

2. Regularly Investing to Grow Your Financial Portfolio

Consistently investing a portion of your income to grow your portfolio is a sign of financial stability. Financially stable individuals understand the importance and benefits of investing for the future and regularly allocate a portion of their income toward various investment options, such as high-yield savings accounts, stocks, real estate or retirement accounts.

Financially stable people also have a clear investment plan that aligns with their risk tolerance and time horizon, actively diversifying their portfolio across different asset classes such as stocks, bonds, real estate and crypto. Moreover, they take advantage of compound interest (profits growing profits) by reinvesting dividends and capital gains. By following these practices, they can build wealth over time and secure their financial future in retirement.

A positive indicator of financial stability is that you can pay your bills and your credit card debt on time and in full, every month. You don’t incur late fees or interest charges that can hurt your credit score and cost you more money in the long run. You also avoid carrying a balance on your credit cards, or other debt by taking out payday loans that can trap you in a vicious cycle of debt.

4. Using Credit Cards for Rewards Rather Than Necessity

Using your credit cards for rewards rather than necessity is another telltale sign of sound financial planning. You don’t rely on plastic money to fund your lifestyle or to make ends meet. Instead, you use credit cards as a tool to earn cash back, points or miles that can help you save money on travel, shopping or entertainment. You also pay off your credit card balance in full every month and avoid paying interest.

Financial stability provides a sense of security that comes from having a stable income and an emergency fund. Aside from having a stable and secure source of income that matches or exceeds your expenses, you also have in-demand skills and qualifications that make you valuable and employable in the market. You’re confident that you can find another job, or create another income stream if needed. 

If you're not constantly worrying about losing your job, and have a backup retirement plan, in case of unexpected job loss, you're on the right track toward financial stability.

Net worth is a measure of your financial well-being and stability. It’s the difference between your assets and liabilities (what you own minus what you owe). A positive net worth implies that you have more assets than liabilities, and a negative net worth means that you have more liabilities than assets. If your positive net worth is consistently increasing over time, you’re building wealth and moving closer to financial stability. You can achieve this through a combination of minimizing debt, saving and investing.

Being financially stable means being in control of your money: Knowing where your money is going and how much you spend and save every month; having a budget in place, and tracking your income and expenses with a spreadsheet or an app; and reviewing your financial statements regularly and making adjustments as needed. You also set SMART (specific, measurable, achievable, relevant and time-bound) financial goals and monitor your progress toward them. Financially stable individuals prioritize financial education and take an active role in managing their finances.

You’re well on your way to financial stability if you make a habit of living below your means. You don’t spend more than you earn or can afford, and you avoid unnecessary debt; you don’t try to “keep up with the Joneses,” or succumb to lifestyle inflation; you prioritize your needs over your wants, and practice frugality and minimalism; and you save money by finding ways to reduce your expenses or increase your income. Making conscious spending choices and saving money this way will enable you to build a solid financial foundation.

9. Not Having to Save Up for Months to Spend on Special Occasions

Financial stability gives you the freedom to enjoy special occasions without the stress of having to save up for months on end. Whether vacations, birthdays, holidays, weddings or family celebrations, you have enough disposable income and savings to treat yourself and your loved ones, without breaking the bank or going into debt. You also plan ahead, and budget for these occasions to avoid overspending or impulse buying.

10. Never Overdrawing Your Checking Account

Overdrawing your checking account can be a sign of financial instability. Having enough funds to cover your expenses without relying on overdrafts or payday loans indicates financial well-being. In addition, you don’t use your checking account as a savings or retirement account, or a piggy bank. You keep enough money in your checking account to cover your regular expenses and transfers, and you move the rest to your savings or investment accounts.

Reasons You Might Still Struggle to Be Financially Stable

While the signs mentioned above indicate financial stability, it's essential to acknowledge that achieving financial well-being can be challenging for various reasons. Some of these factors include the following:

To overcome these challenges, you need to tackle them head-on. This may involve boosting your income through career development or additional income streams, reducing debt through budgeting and repayment strategies, seeking financial education, improving financial habits, and having contingency plans or insurance coverage to handle unexpected events.

Earning passive income can indeed contribute to achieving financial stability. Passive income is generated from sources requiring minimal active involvement or effort. It can provide additional income that supplements your regular earnings. Some common examples of passive income sources include interest from savings, dividends from investments, rental income, royalties, and various online opportunities such as affiliate marketing, e-commerce or creating digital content.

Even cryptocurrency provides ample passive income opportunities. Platforms like Bybit offer specific options for earning passive income through crypto-related activities. For instance, Bybit Earn offers a range of products that provide attractive yields while minimizing risks associated with depositing, staking and earning crypto. 

When you diversify your income sources and incorporate passive income streams, you can reduce dependence on a single source of income and enhance your overall financial stability. Note that earning passive income still requires an initial investment, along with research and some ongoing management. However, when done effectively, passive income can provide a valuable supplement to your finances and contribute to your long-term financial goals.

Achieving financial stability is a journey that requires discipline, planning and practical knowledge of 

. The signs discussed in this guide serve as indicators that you’re on the right path. Remember that financial stability isn’t just about accumulating wealth, but also about being in the driver's seat of your finances and prepared for unforeseen circumstances. 

By following sound financial principles, investing wisely and adapting to changing circumstances, you can strive to set goals for long-term financial stability — and enjoy the peace of mind that comes with achieving it.

Top 10 Signs You're Financially Stable

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