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

Memes

Ben the Dog is a meme coin and decentralized ecosystem built on the Solana blockchain. Learn more about how it works in this article.

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, a playful yet volatile subset of cryptocurrency, have proliferated in the 

 ecosystem, often riding the waves of social media trends and community support. One such entrant, originating on the 

 blockchain, that’s captured the imagination of investors and enthusiasts alike is Ben the Dog. This article delves into the charismatic world of Ben the Dog, exploring its unique features and potential as an investment.

 and decentralized ecosystem built on the Solana blockchain, designed to offer a playful yet functional approach to cryptocurrency through its engaging community and unique digital assets.

 — it's a movement aimed at disrupting the conventional cryptocurrency market by integrating entertainment with utility. The platform seeks to resolve issues of user engagement and market volatility by fostering a strong community around whimsical and relatable digital content, thus creating a stable yet fun ecosystem.

The inception behind Ben the Dog is as unique as the token itself. 

, the visionary behind Solana, once sought guidance from the virtual character Ben during the early, uncertain days of Solana's development. In a moment filled with whimsy, Yakovenko asked the app-based character a crucial question about pursuing his blockchain dream, to which Ben responded positively with a “Yeahppps.” This led Yakovenko to take the leap of faith with Solana that resulted in the blockchain’s massive success. 

This amusing yet pivotal interaction paved the way for a light-heartedness that would coexist with serious technological pursuits. The BENDOG token was later created in order to honor this quirky origin, encapsulating a spirit of innovation and community-driven development within the Solana ecosystem.

Benhalla is the imaginative realm where Ben the Dog and his activities exist. Ben has introduced the following engaging elements to the Benhalla ecosystem.

 both the Google Play Store and Apple App Store. This simple yet engaging game challenges players to navigate through a series of obstacles by controlling Ben, the lively dog character who jumps in response to your taps. The goal is to hold and tap to make Ben shout — which makes him leap over hurdles, collecting coins along the way.

As you progress, the coins you gather can be used to unlock new items and power-ups, enhancing your gameplay and preparing you for even tougher challenges ahead. 

 not only provides a fun, straightforward gaming experience, but also integrates with the broader Benhalla ecosystem, allowing the use of collected items across upcoming games. Whether you’re a seasoned gamer or just looking for a casual pastime, 

 offers a perfect blend of entertainment and challenge.

 in the Ben the Dog ecosystem introduces a rewarding and engaging layer for users, offering several benefits that enhance the interactive experience and potentially increase the value of their holdings. You can stake for different time periods — one month, three months, six months or one year — and 

By staking BENDOG tokens, users can climb the weekly leaderboard ranks. This exclusive feature not only fosters a competitive spirit, but also rewards top participants with regular incentives. These rewards serve as a motivation for users to remain active and engaged within the platform, enhancing their overall experience and involvement in the Ben the Dog community.

Participants who stake their tokens benefit from daily boosts, which can significantly enhance gameplay. These boosts include additional lives, speed enhancements and protective shields, providing stakers with a distinct advantage in various platform activities. This feature ensures that stakers receive tangible, everyday benefits that improve their interaction within the ecosystem and increase their chances of success in platform-based challenges.

Staking BENDOG tokens activates a token multiplier effect, so that users can earn double the in-game coins during their activities on the platform. This multiplier not only maximizes the rewards participants can earn, but also adds an element of accelerated progress through the game, making staking a lucrative and attractive option for users looking to enhance their in-game earnings.

The platform also hosts exclusive tournaments specifically for those who stake BENDOG tokens. These events offer token prizes and create a unique competitive arena that’s only accessible to stakers. The exclusivity of these tournaments adds a layer of prestige and additional incentive for users to stake their tokens, as it opens the door to special events in which the stakes and rewards are significantly higher than in regular competitions.

As the Ben the Dog ecosystem continues to expand, two exciting new additions are on the horizon: the 

 Game and the SocialFi Web3 Raffle. Both features are designed to deepen user engagement and enrich the community experience within Benhalla’s playful world.

The BENDOG token is designed as the central currency within the Ben the Dog ecosystem. It’s structured to support a vibrant and active community, and features the following:

The total supply of BENDOG tokens is capped at 1 billion. This finite supply is intended to prevent inflation and maintain the token’s value, providing a clear limit to the number of tokens that will ever exist.

Ben the Dog has garnered significant attention not only for its charming theme, but also because of its robust community activities and the 

game. Its popularity is enhanced by active social media presence and partnerships within the cryptocurrency space, making it a notable player in the meme coin market.

Looking to trade Ben the Dog tokens? Bybit now offers BENDOGUSDT Perpetual contracts. To get started, you’ll first need to 

, then fund it with cryptocurrency and navigate to the 

Considering its active community, unique value proposition and the backing of Solana’s high-performance blockchain, Ben the Dog presents a compelling case for investment. However, as with any cryptocurrency, potential investors should proceed with caution, due to the inherent volatility of the crypto market, and 

Ben the Dog seamlessly integrates playful elements with serious blockchain functionality, creating a unique niche within the cryptocurrency world. Through its engaging games such as 

 Game and SocialFi Web3 Raffle, the platform offers both entertainment and investment opportunities. 

Despite its appealing community support and innovative tokenomics, potential investors should approach with caution, considering the inherent volatility of the cryptocurrency market. As the Ben the Dog ecosystem continues to expand, it invites users to explore its vibrant ecosystem.

Ben the Dog (BENDOG): Dive Into Benhalla's Playful Ecosystem

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards