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

web3

Explainers

OpenSea is the world's first and largest NFT marketplace. Find out the origin of it and why it is so popular amongst NFT collectors and digital creators.

Dive into the world of non-fungible tokens (

, the world’s largest NFT marketplace that has revolutionized the way digital assets are bought, sold, and traded. Whether you’re a seasoned NFT enthusiast or a curious newcomer, this comprehensive guide will unravel the intricacies of what is OpenSea, its founders’ pioneering vision, and how it has grown into a thriving platform for millions of users. So get ready to explore the endless possibilities of NFT trading and creation, and embark on an exciting journey through the world of what is OpenSea.

Understanding OpenSea: A Comprehensive Overview

Established in 2017, OpenSea has rapidly evolved into the world’s most extensive NFT marketplace, serving as a user-friendly platform for the trade, purchase, and sale of digital assets. It offers a diverse range of NFT categories, including:

Built on the Ethereum network and integrated with the Polygon blockchain, OpenSea ensures seamless transactions with reduced fees, making it a popular choice for NFT enthusiasts.

OpenSea’s intuitive interface simplifies the process of creating NFTs for users, while developers can utilize the platform to build customized NFT marketplaces for various purposes such as in-game items, crowdfunding initiatives, and utility NFT distribution.

Driven by the ambition to develop open protocols enabling developers and users to create open economies across games, platforms, and digital worlds, Alex Atallah and Devin Finzer founded OpenSea in 2017. They identified a need for NFT collectors to safely trade their digital assets, and thus, the world’s largest NFT marketplace came into existence.

Today, OpenSea embodies their vision of an all-encompassing platform for digital asset transactions, including digital currency.

OpenSea’s meteoric rise is evident in its impressive growth, boasting:

The platform’s quick expansion, powered by its accessible interface and various NFT categories, has positioned OpenSea as a preferred destination for global NFT enthusiasts.

The platform of OpenSea presents an intuitive marketplace for users to delve into and uncover NFTs. With various filters and search options, users can easily find and browse through NFT collections spanning a wide range of categories, such as:

When searching for a new home, it’s essential to consider not only the house itself but also other properties in the neighborhood to ensure you’re making the best investment.

Finding the perfect NFT on OpenSea is a breeze, thanks to the platform’s user-friendly navigation. Users can easily sort NFTs by applying filters such as price range, collection, rarity, and more. OpenSea’s marketplace also provides several categories for filtering, including art, music, domain names, virtual worlds, trading cards, collectibles, sports, and utility.

OpenSea accommodates a wide spectrum of NFT enthusiasts with its support for various NFT categories, such as art, music, collectibles, virtual lands, and sports assets. Some of the most popular NFT categories on OpenSea are Profile Picture (PFP) collections, including 

Creating, Buying, and Selling NFTs on OpenSea

With the platform’s simple and straightforward processes, users can easily engage in the world of NFTs.

OpenSea offers various sale types and auction options, catering to the diverse needs of its users.

Learning how to create NFTs on OpenSea is as simple as constructing an NFT collection and uploading digital files in accepted formats. With just a few clicks, users can mint their unique digital assets and showcase them to a worldwide audience.

Buying NFTs on OpenSea is a seamless process. Here are the steps:

OpenSea’s user-friendly interface makes it easy for users to discover and purchase their desired NFTs.

Selling NFTs on OpenSea is equally straightforward. Users can navigate to their collection, select the NFT they wish to sell, and choose between listing it as an auction or a fixed sale. OpenSea charges a fee of 2.5% for each transaction, ensuring a fair and competitive marketplace for all users.

Blockchain Integration and Multichain Support

By integrating with multiple blockchains like Ethereum and Polygon, OpenSea assures seamless transactions and minimized fees for its patrons. The platform’s multichain support enables users to access a diverse range of NFTs, promoting a more inclusive and thriving NFT ecosystem.

Built on the Ethereum network, OpenSea utilizes the Wyvern Protocol for smart contracts, enabling secure and decentralized NFT transactions. Ethereum’s features that make it an ideal choice for developers and businesses include:

Ethereum serves as the foundational blockchain infrastructure for OpenSea.

OpenSea’s integration with Polygon offers users:

While Polygon may lack the same level of familiarity within the NFT market as Ethereum, its benefits in terms of transaction speed and reduced fees make it an increasingly popular choice for NFT enthusiasts.

OpenSea maintains compatibility with a variety of crypto wallets, facilitating easy connection and management of NFTs for users. The platform emphasizes security measures to protect users’ assets, offering valuable advice on best practices and precautions to maintain the safety of digital wallets and transactions.

OpenSea supports an array of wallets, including:

This allows users to connect and manage their NFTs. Users can easily integrate their preferred wallet with OpenSea and use it to purchase, sell, and trade NFTs on the platform.

OpenSea encourages users to follow security best practices, such as using hardware wallets and being cautious of phishing attacks. The platform has implemented security measures to protect user wallets and transactions, locking compromised accounts and blocking stolen items.

However, users are ultimately responsible for the security of their digital wallets, and OpenSea recommends taking steps to ensure that wallets are secure.

By offering valuable NFT data and market trends, OpenSea equips users to make enlightened decisions and uncover top collections. The platform’s analytics tools, along with its API for tracking real-time NFT sales, offer valuable insights for collectors and investors alike.

OpenSea offers a range of NFT statistics and analytics tools, such as:

These tools allow users to mint nfts and sort them, including non fungible tokens, utility nfts, and other crypto collectibles, by sales volume, recent activity, and other metrics, providing valuable insights into the NFT market and trends.

OpenSea highlights top collections and projects, helping users identify popular and valuable NFTs. By consulting the rankings on the OpenSea website, users can discover the highest-ranking NFT collections based on volume, floor price, and other statistics.

Notable collections include Bored Ape Yacht Club, Mutant Ape Yacht Club, Azuki, and Springfield Punks.

Comparing OpenSea to Other NFT Marketplaces

OpenSea distinguishes itself from other NFT marketplaces with its exclusive features, varied NFT categories, and competitive fees. However, it also faces challenges and controversies that may impact its reputation.

A comparison of OpenSea with competitors such as Rarible and SuperRare offers significant insights into the respective strengths and weaknesses of each platform.

OpenSea offers a user-friendly platform, diverse NFT categories, and low fees compared to competitors like Rarible and SuperRare. Its easy-to-use interface, comprehensive search options, and blockchain support make it a preferred choice for NFT enthusiasts.

Additionally, OpenSea adheres to metadata standards, ensuring a seamless and enjoyable user experience.

Despite its success, OpenSea has faced controversies, including insider trading allegations, plagiarism, and phishing attacks. These incidents may impact the platform’s reputation and user trust. However, OpenSea has taken steps to address these issues and implement measures to prevent future occurrences, demonstrating its commitment to maintaining a safe and secure marketplace for its users.

In conclusion, OpenSea has cemented its position as the world’s largest NFT marketplace, offering a diverse range of digital assets and a user-friendly platform for trading, buying, and selling NFTs. Its integration with multiple blockchains, compatibility with various wallets, and emphasis on security make it an attractive choice for NFT enthusiasts. So, whether you’re a seasoned collector or just starting your NFT journey, OpenSea is an excellent platform to explore the exciting world of non-fungible tokens. #Bybit #CryptoArk

OpenSea is a blockchain-based marketplace for buying, selling and trading NFTs, similar to eBay or Etsy but in a decentralized manner.

Overall, OpenSea is a safe place to buy and mint NFTs since they are stored in your own wallet. However, there have been reports of crimes targeting the platform and its clients in 2021 and 2022, so it is important to take precautions when buying or trading.

OpenSea is free to use for creating and minting Non-Fungible Tokens (NFTs). Although selling an NFT on OpenSea is free, there may still be transaction fees involved depending on the blockchain being used, and OpenSea will typically take a 2.5%-10% fee from the total sale.

Open Sea is a great place for beginners to start exploring the world of NFTs, as it offers many options such as sports collectibles, domain names, trading cards, and virtual worlds.

OpenSea is a decentralized platform for buying and selling NFTs across multiple blockchain platforms such as Ethereum and Polygon. It also enables users to mint their own NFTs.

What is OpenSea? Discover the World's Greatest NFT Marketplace

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards