Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Macro movements shifted spot prices over the weekend, continuing crypto's January 2025 trend of influencing Monday's equity moves. However, this week's reactions were less pronounced, as indicated by lower implied volatility, even amid brief inversions in the volatility term structure. A high mid-week CPI print had minimal impact on spot prices, as reflected by weak sentiment indicators in derivatives markets, including volatile funding rates in altcoins, stagnant open interest in futures and options and a decline in the bullish skew of longer-tenor volatility smiles. 

In perpetual swap markets for major tokens, open interest remains stable, though funding rates have often been volatile and negative. Meanwhile, despite several inversions in ETH’s term structure, volatility expectations have decreased over the past month.

Please check out the report’s highlights.

Perpetual swap open interest has remained stable over the past 10 days since the drop on February 3, 2025, with no return to overleveraged levels, as indicated by funding rates. This trend aligns with futures, which haven’t regained their previous strong basis above spot prices, and options, which have lost some bullish skew toward OTM calls that persisted after the election. Additionally, trade volumes have decreased, compared to the previous two weeks, reflecting the lower volatility in the spot market during the same period.

Volatility Falls to Its Lowest Level in 2025

Outright volatility levels are at their lowest this year, reflecting diminished demand for optionality and lower expectations of future volatility. Despite this downward trend, the volatility term structure has inverted multiple times over the past month, typically late Sunday or early Monday. Reduced spot price volatility is mirrored in lower trade activity in options markets, with average trade volumes at their lowest for the year over the past week, while open interest in both call and put options remains stable.

Trade volumes in SOL put options dropped this week, with significant positions noted on Feb 2 and 9, 2025, coinciding with President Trump’s announcement of new tariffs and China’s retaliatory measures. In contrast, open positions in call options have remained relatively stable as spot prices decline from their Jan 19, 2025, all-time high. However, longer-dated call options continue to dominate, although the gap in open interest has narrowed.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Feb 12, 2025): Volatility Drops to Its Lowest Level in 2025; Solana Put Volume Drops

OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders.

Daily Top Performer — AI Rig Complex (ARC)

The S&P 500 gained 1.04%, driven by optimism despite strong inflation data and boosted by positive earnings. Gold nears record high at $2,925 on USD weakness, trade fears, and central bank demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.06%, with Bitcoin and Ether dropping by 0.79% and 0.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is ARC, which surged nearly 7.0% following the debut of Arc Forge with AskJ, overcoming launch hurdles for a stronger future.

AI Rig Complex (ARC), launched in 2024, is a high-performance AI framework built with Rust, enabling intuitive, context-aware interactions. Its core platform, Playgrounds, integrates multiple LLMs and AI workflows, streamlining development while eliminating vendor lock-in. 

, a token launch platform built on Meteora’s DLMM and integrated with Jupiter routing, ensures deep liquidity, sniper protection, and synergy with ARC by routing all trades through it. Each launched token now features "arc" in its contract address as an emblem of the ecosystem. The first launch, AskJ by AskJimmy—an AI-driven trading platform—went live on Feb 13 at 9 AM EST. Despite initial technical issues causing frustration, the Arc team has resolved frontend problems and is preparing a post-mortem to improve future launches. Their focus remains on high-quality, vetted projects over volume.

Check Out the Latest Prices, Charts, and Data of 

OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders, featuring NFT and token integration, enhanced discovery tools, support for 14 blockchains, native cross-chain purchasing, and reduced fees (0.5% marketplace, 0% swap). The platform also confirmed the upcoming $SEA token, with eligibility based on historical usage and a simple claim process. While no release date is set, OpenSea emphasizes long-term sustainability and community support.

Yesterday, BTC Spot ETFs had $183M in net outflows, with GBTC losing $6.9M and non-GBTC funds $176.1M.

 its $SEA token, prioritizing historical users over recent activity. U.S. users are eligible, but the exact timing remains unannounced. Stay tuned for more details.

Beginner

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OpenSea Unveils OS2 Beta With Cross-Chain Trading and Upcoming $SEA Token

Diamante uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. Learn more here.

Though Diamante has been around for a while, its recent rebrand and upcoming token generation events have propelled it back into the news cycle. The Diamante chain's big claim to fame is that it's the first 

 in existence. What does this mean for the typical crypto user or investor? Keep reading this guide to learn more about how Diamante works — and why it could be so revolutionary.

 is an independently operated Layer 1 blockchain. It uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. This results in a chain that’s particularly scalable, secure and decentralized.

 in 2018. Patel has 25 years of experience in business and finance, and Jetani is an engineer and long-time blockchain enthusiast. Much of the project was born out of Jetani's passion for creating a blockchain system that could meet the complete needs of its users.

. This rebrand included dropping half of the project's name, and redesigning the company's logo and website. Jetani explains that this rebrand is meant to help the chain diversify and expand. By emphasizing its broad ecosystem with a variety of applications, the team hopes to showcase that Diamante is more than just a standard blockchain. 

A lot of Diamante's design comes from a desire to address the 

. Many early blockchains realized it was difficult to create a system that was equally secure, scalable and decentralized. Inevitably, they ended up having to sacrifice one of these features to promote the other two. 

Diamante hopes that its unusual hybrid design can provide users with a blend of all three features. By solving the blockchain trilemma, Diamante believes it can become the most flexible chain in the world. Instead of only working for specific use cases, the blockchain hopes to be equally useful for any project. Whether a big business seeks a secure way of recording data, or a startup application is looking for scalable transactions, Diamante believes it can help.

The Diamante ecosystem infrastructure starts with a decentralized network of servers. Each server holds a copy of the same ledger that lists all transactions every user makes. Diamante has set up its servers to communicate with each other and 

 (FBA) is used to update the servers and reconcile any disagreements while syncing. This creates a tiered system that prioritizes resilience and decentralization. All of the various products within the Diamante blockchain network are run on this blockchain, while the software on Diamante’s website provides a convenient and straightforward interface for accessing its services.

By leveraging proprietary blockchain infrastructure, Diamante has been able to create an entire 

 so that any user who accesses it can enjoy all of its features.

Diamante calls itself “hybrid” due to its ability to use the same chain for drastically different purposes. It offers both centralized and decentralized features at the same time, so users can choose secure options for institutional applications or scalable options for 

A secure validation method is part of establishing concrete trust in a system, and Diamante has certainly delivered on this aspect of a Layer 1 blockchain. It uses a combination of proof of stake, proof of history and asynchronous Byzantine fault tolerance 

 to validate its chain. In addition to being secure, this also approach helps the chain stay compatible with a variety of other blockchains.

Diamante aims to future-proof itself by being resilient to attacks from quantum computers. This will help ensure its system remains secure even if this advanced new technology is developed.

. While settling a transaction on a larger chain like Bitcoin or Ethereum can take minutes, Diamante claims it can get settlements finalized in around four seconds.

 trends, Diamante's products are built to address real-world needs. It offers a variety of banking, payment and credit applications that people can use to manage their finances and work with brick-and-mortar businesses.

Diamante's architecture is set up to use as little computing power as possible. This results in an eco-friendly design and a system that doesn’t encourage its users to waste electricity and other resources.

Since 2024, Diamante has been working on a road map that’s meant to revolutionize global finance, and to center Diamante as a leading ecosystem. The company has already refined its technology and streamlined its marketing with a rebrand. It’s currently working on expanding to the U.S. and launching a new cryptocurrency token. 

 focuses on offering more services centered on payments and trade. It plans to integrate credit provision, banking, accounting and investment services in one convenient location. By 2026, Diamante plans to be a payments super-app whose users can access a variety of financial solutions from a secure and decentralized environment. 

To help launch its new token, DIAM, Diamante has hosted an 

 for its users. Eligibility for the airdrop is based on on-chain activity, so the more you use Diamante for its transaction and recording services, the more tokens you can receive. 

Diamante reports that over 600,000 people have already participated in the airdrop, and it will continue running until the token generation event on Feb 12, 2025. Users can claim their portion of the airdrop by 

. Syncing your wallet to your account will allow you to automatically claim DIAM.

DIAM, the native token of Diamante, will be used to manage a variety of fees and services throughout the blockchain ecosystem. It has a larger-than-average total supply of 

 that will be distributed according to the following plan.

Since DIAM is still quite new and hasn't been released on most markets yet, there isn't a lot of pricing data for analysts to discuss. An impressive 

 has been reported for token presales so far. However, with such a large token supply, users shouldn’t expect an extremely high price per token. 

Typically, crypto price predictions are heavily related to the amount of positive press a crypto is receiving. DIAM has captured a lot of attention from crypto influencers and generated 

. However, no one can quite agree on whether the token has a bullish or bearish outlook. While some social media comments praise the forward-thinking nature of the ecosystem’s creators, other commenters believe Diamante will struggle to compete with Solana and other similar chains.

Looking to trade Diamante tokens? Bybit now offers the DIAM/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

By leveraging proprietary blockchain infrastructure, Diamante could potentially become a critical part of the financial ecosystem. It's backed by a lot of reputable funders, and has a highly dedicated marketing team providing plenty of detailed information about how the project works. These are usually positive indications that a new crypto token will receive enough support to perform well. 

However, establishing concrete trust with an audience can take time, and there are some understandable concerns as to whether Diamante can deliver on all its claims. Though it does have some unique tech, other chains are providing similar services already. This uncertainty may combine with inherent market volatility to provide some issues for the DIAM token. Users who want to invest in it need to remain cautious and use smart 

The Diamante's blockchain’s hybrid design makes it a very promising Layer 1 project. Its ability to maintain numerous services across countless nodes could be quite useful. However, it's difficult to predict how many of its plans this highly ambitious project will actually accomplish in the near future. Interested investors should make sure to keep a close eye on Diamante.

Intermediate

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Diamante (DIAM): The First Hybrid Layer 1 Blockchain Ecosystem

Get started with Bybit trading competition at ease & never miss out on any opportunities to win bonuses and rewards!

The benefits you gain from joining trading competitions are boundless. You can make money, hone your trading skills, explore untried strategies and so much more. Bybit hosts a plethora of trading competitions, from small but frequent product-specific competitions held once a month or bimonthly to annual grand events like the 

 (WSOT) competition. These contests are a perfect avenue to help you reap profits, regardless of the market condition. 

With so many types of competitions, you may need more clarification on what types you’re eligible to join and what kind of rewards you can gain from them. With this handy guide, you’ll wonder no more as we break down the nitty-gritty of participating in Bybit's trading competitions.

With all its varying products, Bybit has many different kinds of competitions, ranging from 

. Regardless of the type of competition, participants are usually ranked on the leaderboard based on either profit and loss (P&L, or PnL) ratio or trading volume. 

P&L refers to the total amount of revenue and costs of your trading throughout the competition. Hence, when you compete to rank for P&L, you're competing to show how profitable you are.

P&L (%) = (Profit / Initial Equity + Total Deposits) * 100%

If you have the same P&L% as another participant, your total trading volume will then determine your ranking.

Trading volume measures the total number of contracts or crypto traded during the competition. If you achieve the same trading volume as another competitor, you’ll then be ranked based on the time you took to reach that trading volume. 

Benefits of Joining a Crypto Trading Competition

Participating in a crypto trading competition offers numerous benefits to uplift your trading journey. These competitions bring exciting rewards that can increase your gains during a bull market, or offset your losses and reignite your motivation to seek financial gains during a bear market. Moreover, the experience gained from live trading is invaluable, surpassing theoretical knowledge. Competitions provide real-life insights, opening your eyes to new opportunities.

Competing also inspires you to explore innovative trading strategies, going beyond your comfort zone and potentially yielding astounding gains. Comparing your performance with other traders on a level playing field allows you to gauge your abilities and even earn coveted bragging rights if you emerge victorious.

Please be aware of several registration criteria, as they’ll affect your eligibility to join the competitions.

Depending upon the specific competition, the registration criteria will look at the amount of net assets or net equity you have in your Bybit account. But what’s the difference between net assets and net equity? Net assets are your total assets minus your liabilities, and include unrealized gains and losses, whereas net equity excludes unrealized gains and losses.

Besides net assets and net equity, other elements also come to play in influencing your eligibility to join a competition. For instance, a single user shouldn’t have more than one account. If you create multiple accounts to join competitions on Bybit, you’ll be considered a fraud and will consequently be disqualified. Furthermore, you can only participate in one competition within the same time frame, except for grand-scale competitions like WSOT and Copy Trading Fiesta that hold several events within one competition. In such cases, you’ll be able to participate in more than one event simultaneously.

While you may only open one main Bybit account, you can open up to 20 

 connected to your main account, while four Subaccounts can be used to link to your Main Account for competitions. With Subaccounts, you can now join multiple competitions simultaneously to maximize your rewards.

Similarly, Market Makers and Pro users are prohibited from joining Bybit competitions, as they’re typically institutional traders who can make use of their high trading volumes to gain an edge in the competitions.

While most Bybit competitions only specify net assets or net equity as their registration criteria, certain competitions also require a referral link or code on top of the minimum net assets or net equity amount. Through joining such competitions, you can also expect exclusive rewards not found in other competitions.

Speaking of rewards, Bybit generally offers two types of rewards for its competitions: the prize pool and lucky draw. It’s important first to ensure you’re eligible for rewards, especially for P&L-ranked competitions. Even if the competition is ranked by P&L, you’ll still need to hit a minimum specified trading volume before you qualify for rewards. For example, the 

 held in September 2024 required participants to reach a derivatives trading volume of at least $10,000,000 before they could earn any rewards.

The main reward base for Bybit competitions is the prize pool. The prize pools can consist of hundreds of thousands of USDT, or even millions of USDT, depending on the scale of the competition. For large-scale competitions like WSOT and Copy Trading Fiesta, participants can enter several events under these competitions and obtain more rewards. 

It's good to embrace a positive and encouraging mindset as you participate in trading competitions. Observe and learn from the strategies employed by other contestants to refine your own trading plan. By analyzing their moves, you can gain valuable insights and give yourself a competitive edge. Remember, however, that it's also essential to think critically and avoid blindly copying others.

Always analyze your own performance and adjust your strategy accordingly, even in short-term competitions. Also, stay informed about market events and developments that can impact your performance, as this knowledge will maximize your chances of success. With the right mindset and strategic approach, you can excel in trading competitions.

Bybit is actively organizing trading competitions to provide users with a chance to maximize rewards. 

The TradeMasters Grand Prix trading competition and the World Series of Trading (WSOT) are among the biggest annual competitions on Bybit.

TradeMasters Grand Prix Trading Competition

Bybit’s TradeMasters Grand Prix trading competition is a year-long series of derivatives trading contests with a prize pool of 10,000,000 USDT. This year, it opens its first series with a prize pool of 1,000,000 USDT. The competition runs from Feb 18, 2025, 10AM UTC to Mar 11, 2025, 10AM UTC, with registration held between Feb 11, 2025, 10AM UTC and Mar 6, 2025, 10AM UTC. 

You’ll need to hold at least 5,000 USDT worth of crypto in your Bybit account in order to participate and be eligible for rewards, and you’ll be ranked based on either your trading volume or your PnL%. If you reach a trading volume of over $6 million, using specific tools like the 

, you’ll unlock an extra 50,000 USDT prize pool. 

Additionally, if you become a Bybit VIP during the competition period,, you’ll enjoy an exclusive welcome bonus of up to 800 USDT.

Launched in 2020, Bybit’s World Series of Trading (WSOT) has grown continually. In 2024, WSOT broke records with an all-time high of $100 billion in trading volume and over $137 million in profits for its participants. 

 offered a grand prize pool of 10,000,000 USDT and consisted of several trading competitions. 

 competition featured a prize pool of 7,150,000 USDT, split into four reward categories: Squad PnL% Ranking, Regional Squad PnL% Ranking, Individual Profit and Individual Trading Volume. There were also side competitions like 

, open to both Master Traders and Followers, and 

 a vote-based competition whose voters shared in an 800,000 MNT prize pool by voting for a top ten–ranked web3 project. 

How do I know my rewards distribution status?

There will be a Bybit Announcement post regarding rewards distribution and dates.

You can only collect your rewards after a competition ends, with the waiting period ranging from one week to a month. A risk review will be conducted after each competition ends, after which the rewards will be given on the date specified in the announcement post. 

As highlighted above, creating multiple accounts to earn more rewards in competitions is considered fraudulent behavior and will lead to disqualification. Other fraudulent behaviors include 

, volume faking, market manipulation and more. Be sure to read the competition’s terms and conditions carefully to avoid getting disqualified. 

Now that you’ve learned about all the rankings, registration criteria and rewards in Bybit trading competitions, you might be eager to flex your muscles in some of them. But before you do, remember that it’s important to carefully pore over the terms and conditions to ensure you get properly reimbursed for your efforts.

We hope our tips will help your competition journey be a fun and fruitful one. May you enjoy the process and savor the sweetness of winning!

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How to Join Bybit Trading Competitions (Ultimate Guide)

Bybit Learn

Crypto Insights

Our monthly report delves into insights from options volatility to inspire your next crypto move.

Intro to Volatility Report Feb 2025

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: In January 2025, Bitcoin (BTC) and Ethereum (ETH) faced significant weekend sell-offs driven by macroeconomic factors, including Donald Trump’s U.S. tariff policies, expectations of a strategic Bitcoin reserve and disruptions from AI competitors like DeepSeek.

: BTC and ETH reacted more quickly and sharply than traditional equities did to economic and geopolitical news as leading indicators for Monday market movements, similar to the earlier yen carry trade unwinding in August 2024.

: Ethereum consistently underperformed Bitcoin during market dips in January 2025. However, the options markets reflected a lower implied volatility premium for ETH than expected, based on recent volatility comparisons.

Macro Factors Influencing Crypto Sentiment

In January 2025, the cryptocurrency market — particularly Bitcoin (BTC) and Ethereum (ETH) — experienced significant volatility largely driven by macroeconomic events. Key influences included U.S. president Donald Trump's unpredictable tariff policies and the emergence of artificial intelligence (AI) competitors such as DeepSeek, both of which created uncertainty in traditional and crypto markets. 

The turbulent sell-offs of BTC and ETH contrasted starkly with the relatively stable conditions observed during the Christmas 2024 period. This volatility was particularly evident on weekends, as crypto markets reacted more sharply to macroeconomic news than traditional equities, often serving as a leading indicator for market movements in the following week. For instance, the reaction to both subsequent labor market data and the hawkish tone from the Federal Reserve resulted in a notable sell-off of crypto assets before traditional markets opened.

Throughout January, a pattern emerged whereby the cryptocurrency market exhibited heightened volatility during weekend trading sessions, especially on Sundays. This trend was characterized by significant sell-offs that preceded the opening of traditional markets on Mondays. The chaotic environment was exacerbated by the launch of Trump-family meme coins and heightened expectations surrounding a strategic Bitcoin reserve, which led to rapid price fluctuations in crypto assets. 

Despite the initial bullish sentiment, these expectations were tempered by conflicting tariff reports, resulting in further volatility. This analysis highlights that the realized volatility — measured by 10-minute returns — spiked significantly during weekends, indicating that the crypto market is particularly sensitive to developments that unfold over the weekend.

Ethereum's Underperformance and Volatility Trends

January 2025 marked a challenging month for Ethereum, which consistently underperformed relative to Bitcoin during periods of market downturns. Despite ETH’s historical tendency to exhibit higher volatility than BTC, the options markets were pricing ETH’s implied volatility at a lower premium than its realized volatility. This discrepancy suggests that investors weren’t fully accounting for ETH’s increasing volatility in their market expectations. 

The emerging trends indicated a growing volatility premium for ETH as compared to BTC, with ETH exhibiting sharper price movements in both upward and downward directions. As January progressed, the divergence in performance between BTC and ETH underscored the unique dynamics within the crypto market, particularly as macroeconomic pressures continued to shape trader sentiment.

Events of January 2025 highlighted the intricate relationship between macroeconomic factors and cryptocurrency volatility. The sharp reactions of BTC and ETH to external events signify their role as leading indicators in the financial landscape, and the pronounced volatility during weekends and the distinct behavior of Ethereum relative to Bitcoin reflect an evolving market characterized by rapid changes and heightened sensitivity to external influences. As the landscape continues to shift, these trends will be critical for traders and investors navigating the complexities of the crypto market.

Bybit X Block Scholes Option Volatility Report (February 2025): January 2025 Marks New Start for Crypto, Shaped by Macro and Policies

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards