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

As the U.S. election nears, short-term implied volatility has risen to multi-month highs, significantly outpacing the longer end of the term structure and causing a notable inversion. This shift indicates heightened positioning activity ahead of the election early next week, similar to the pattern seen before the Bitcoin Spot ETF launch in January 2024. 

Meanwhile, ETH derivatives suggest that the second-largest cryptocurrency is likely to maintain its trend of underperformance amid event risk, lagging behind BTC across all metrics and carrying a 10-point volatility premium over it.

Please check out the report’s highlights.

The recent surge in futures open interest has accelerated significantly over the past few days as BTC’s spot price approaches all-time highs, suggesting that traders are positioning themselves for additional price movements across all tenors. However, this increase has been almost exclusively in BTC contracts, with ETH experiencing only a slight uptick in active contracts. Coupled with the less bullish sentiment in ETH options markets, this indicates that traders are much more inclined to take bullish positions for BTC in anticipation of the election than for ETH, despite ETH's recent rally.

Open interest in perpetual swap markets saw a brief decline before sharply recovering alongside spot price rallies, reaching the highest levels this month (October 2024). When combined with the positive funding rates for BTC and ETH, these fluctuations indicate strong bullish demand for leveraged long positions as traders prepare for upcoming event risks. Moreover, while trading volumes remain high, they haven't shown any exceptional activity over the past week, suggesting consistent engagement with perpetuals without significant volatility.

Surging 7-Day Volatility as U.S. Election Looms

BTC’s implied volatility term structure has experienced a significant inversion, with short-term implied volatility rising sharply to trade at a 10-point premium over longer tenors. This shift indicates heightened expectations in the options markets as the U.S. election approaches, reflecting similar trends seen in futures and perpetuals. This rush to position mirrors market behavior observed in January 2024 ahead of the release of Bitcoin Spot ETFs, when there was a surge in demand for short-term exposure to anticipated volatility. Notably, despite bullish market indicators, open interest has shown a rapid increase in put options, which have reached levels comparable to those for call options.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Oct 30, 2024): Derivatives See Patterns Reminiscent of BTC Spot ETF Launch in January 2024

BBQCoin (BBQ) is a tap-to-earn game on TON blockchain with a growing GameFi ecosystem  incorporating AI and VR technologies.

 (TON), whose ecosystem has seen a buzz of successful projects attracting millions of users. The Telegram-backed blockchain leverages the social media's vast user base to create viral narratives revolving around social interactions and apps.

One such narrative is tap-to-earn games, such as 

, which have experienced phenomenal success as users have embraced them in pursuit of riches.

 is the latest entrant into the tap-to-earn craze on TON, and the project is already creating a buzz as users rush in to make a fortune through tapping.

Let’s explore this click-to-earn game further.

BBQCoin is a Telegram-based clicker project whose initial game is powered by TON’s blockchain. It’s designed as a social learning platform on which users earn simply by tapping on a screen

. The BBQCoin app on TON is modeled on the 

, in which users earn from participating in fun activities.

BBQCoin launched on TON to leverage Telegram's extensive user base of around 900 million users, and has a vibrant community that can easily scale the project.

The broader vision for the project is to provide a vibrant GameFi and 

 (DeFi) ecosystem, incorporating AI and VR technologies, that will include token issuance, lightweight games, OTC escrow trading and on-chain trading. Players are envisioned to have the capability to own 

 (NFTs) in the form of “BBQ rooms,” which can be customized according to their preferences. However, in the project's first phase, BBQCoin focuses on its tap-to-earn game in which participants mine or earn in-game BBQcoins as they climb up the leagues by mastering the game.

The circulating currency for the BBQCoin project is BBQ, which users earn as they engage with the platform.

 game app on your device by heading to the BBQCoin Telegram channel and clicking on 

. Once you've entered the game, you simply need to tap on the screen to mine or earn coins. The more tapping you do, the more coins you accumulate.

The game has various features designed to enhance your experience, as follows.

There are several ways to mine/earn BBQcoins.

In Q2, 2024, BBQCoin launched its click-to-earn model and also introduced BBQ token staking. Then, in Q3 2024, the project introduced multiplier card NFTs for token holders, and conducted an airdrop to distribute BBQ tokens to its early adopters.

By Q4 2024, BBQCoin intends to launch its NFT gaming guild system, in which users can mint NFTs. The project also anticipates launching the BBQ marketplace and token issuance and launchpad products.

In Q1 2025, BBQCoin plans to introduce its on-chain trustless trading system and off-chain OTC trading platform. Then, in Q2 2025, the project intends to launch its social gaming platform and open gaming guild APIs. By Q3 2025, BBQCoin hopes to integrate AI/AR technology to enhance user-generated gaming guilds.

BBQ is the native token for BBQCoin ecosystem. Players can earn BBQ by carrying out various activities in the ecosystem. Its total supply of 500 million tokens is distributed as follows:

As indicated above, 45% of BBQ’s total supply will go to in-game mining rewards, at a rate of 0.3% per year, which will be halved every year. Rewards will be split 60/40 between the game ecosystem mining pool and the launchpad ecological mining pool.

You can get your BBQ tokens by subscribing to the 

 from Oct 28, 2024, 10AM UTC to Nov 3, 2024, 10AM UTC. Thereafter, a lottery will be conducted on Nov 3, 2024 for 15 minutes, from 10–10:15AM UTC. You can then redeem your BBQ tokens from Nov 3, 2024, 10:15AM UTC through Nov 4, 2024, 10AM UTC. The IDO will fundraise with USDT on BNB Chain, then distribute the BBQ tokens to TON wallet addresses.

 allows you to buy tokens before they launch (at presale prices). It uses a system of smart contracts to help you fairly and equitably access presale tokens at the presale stage. By getting into presale, you’re almost assured of the initial allocation of a token before it goes mainstream.

The tap-to-earn phenomenon on TON has attracted millions of players. The latest tap-to-earn game in this popular space, created by BBQCoin, could go on to perform as well as its counterparts did earlier this year. The simplicity and non-technical nature of this game make it attractive to a wide range of players, including beginners. 

As TON continues to onboard new users into web3, BBQCoin finds itself in a ripe market with a game that could be an exciting opportunity for people to make a fortune.

Beginner

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BBQCoin (BBQ): Grill Your Way to Rewards on TON

In this article, we'll go through how you can use bbSOL on Kamino.

 has emerged as a pivotal platform for those looking to optimize their digital asset management, especially with 

 (bbSOL). This article will explore how bbSOL holders can leverage Kamino’s sophisticated suite of DeFi tools to enhance liquidity provision, maximize yields and strategically employ their assets in novel ways.

 was initially conceived to streamline the process of providing liquidity and generating yield on the 

 blockchain. It quickly distinguished itself with innovative one-click auto-compounding concentrated liquidity strategies that have set new standards in the industry.

Today, Kamino has evolved into a comprehensive DeFi platform that unifies lending, liquidity provision and leverage opportunities into a single integrated product suite, making it the first and largest of its kind on Solana.

Kamino's platform offers users a range of options to engage with the DeFi space more actively:

Additionally, Kamino’s user interface is designed to be highly intuitive, offering transparent analytics, detailed performance data and extensive information about positions, which demystifies the often complex dynamics of DeFi for everyday users.

Scroll down and expand LST List, select bbSOL.

, input bbSOL amount.              

Read, understand and check the points before selecting 

Once deposit is done, monitor your position.

Kamino offers a robust platform for users looking to enhance their DeFi engagement using bbSOL. From simple lending and borrowing to more complex leveraged investments and automated strategies, Kamino provides a comprehensive, secure and efficient environment for your digital assets. Whether you’re a seasoned investor or new to the blockchain space, Kamino’s user-friendly interface and powerful features make it an excellent choice for expanding your investment portfolio on Solana.

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How to Use bbSOL on Kamino

Franklin Templeton has expanded its OnChain U.S. Government Money Market Fund (FOBXX) to Coinbase’s Base, an Ethereum Layer-2 network, allowing users to trade the fund on Base.

Daily Top Performer — Grass Network (GRASS)

The S&P 500 dropped 1.86% on Thursday, led by disappointing guidance from Microsoft and Meta. Investors now await the October jobs report for further market cues. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 4.71%, with Bitcoin and Ether dropping by 2.61% and 5.93%, respectively in the past 24 hours.

Today's top performer is GRASS, which surged 13.4% following the launch of Stage 2 of the Grass Network, aimed at building a user-owned internet map and introducing new rewards.

Grass Network (GRASS), founded in 2023, is a decentralized network on the Solana blockchain that converts unused internet bandwidth into a resource for collecting and structuring public web data for AI development. 

, aiming to create a user-owned map of the internet by routing web searches through its platform. This phase will introduce rewards and new products, including Live Context Retrieval (LCR) and a mobile app. Reflecting on Stage 1, Grass has achieved 2.8 million users across 190 countries, conducted the largest airdrop on Solana, and scraped 100TB of web data daily.

Check Out the Latest Prices, Charts, and Data of 

 its OnChain U.S. Government Money Market Fund (FOBXX) to Coinbase’s Base, an Ethereum Layer-2 network, allowing users to trade the fund on Base. Known for providing access to U.S. government securities, FOBXX can now be held in digital wallets via the Benji Investments app. Base joins other networks like Avalanche and Arbitrum in supporting FOBXX, furthering Franklin Templeton's involvement in digital assets, which began in 2019.

Yesterday, BTC Spot ETF data showed an outflow of $286.5 million, including $31.1 million from GBTC and $255.4 million from non-GBTC sources.

Zircuit airdropped its ZRC tokens to 190,000 EigenLayer (EIGEN) holders on October 31, granting equal amounts per recipient to support equity in token distribution. This "

" is part of Zircuit’s strategy to recognize contributions regardless of stake size and foster decentralization. Zircuit's platform, launched in early 2024, amassed a $3.7 billion TVL at its peak, currently holding $1.58 billion. Zircuit’s ZRC token, now trading at $0.17, has declined 22.7% since its September unlock. EigenLayer, a major player in the liquid restaking space, has a TVL of $11.2 billion.

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Franklin Templeton Brings OnChain Money Market Fund to Coinbase’s Base Network

Bybit Learn

Trading

Learn how to trade crypto perpetual futures on Bybit. Get insights on flexible trading strategies, risk management tools, and margin requirements to enhance your trading.

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Perpetual futures contracts have become a popular choice among cryptocurrency traders, offering flexibility and unique features as compared to traditional futures. Bybit’s cryptocurrency exchange provides the tools and resources necessary to get started with crypto perpetuals trading. Traders can easily select their desired trading pair on Bybit's platform, enhancing their trading experience.

What Are Crypto Perpetual Futures Contracts?

 that allow traders to speculate on the price movements of assets such as Bitcoin or Ethereum without a set expiration date.

Unlike traditional futures contracts, which involve an agreement to buy or sell an asset at a predetermined price on a specific date, perpetual futures don’t have a set expiration date. Perpetual futures can be held indefinitely, as long as margin requirements are met.

Bybit offers linear perpetual contracts with USDT and USDC as collateral. Bybit also offers inverse perpetuals, with the underlying asset (for example, BTC) as collateral.

: A 1 BTC contract in a BTCUSDT perpetual contract would yield a profit of 100 USDT if the price of BTC rises by $100. This straightforward calculation and flexible holding period make perpetual contracts a popular choice.

Key Differences From Traditional Futures Contracts

The main distinction between perpetual futures and traditional futures is the lack of a fixed settlement date. Traditional futures require periodic closures or rollovers, which can complicate long-term strategies. Standard futures contracts, like those offered on traditional exchanges, have fixed expiration and settlement dates, which can complicate long-term strategies. In contrast, perpetual futures allow you to hold positions indefinitely, maintaining flexibility.

: While traditional futures align with the spot price as they near expiration, perpetual futures use periodic funding rates to keep prices close to the spot value. Funding payments are exchanged between 

 based on market conditions, helping to maintain price stability.

Perpetual futures trading has become increasingly popular in crypto markets due to several key advantages:

Bybit's user-friendly trading interface allows traders to easily navigate and manage their positions, enhancing the overall trading experience.

The combination of these benefits makes perpetual futures appealing to both beginning and experienced traders, allowing them to enhance trading strategies and/or hedge risks effectively.

Perpetual Futures vs. Traditional Futures: Quick Scenario

Let’s take an example. John, a trader, expects Bitcoin’s price to rise from $30,000 to $35,000 over three months.

Since perpetual futures lack an expiration date, allowing traders to hold long or short positions indefinitely, this provides greater flexibility to adapt to market changes without needing to close contracts or roll them over.

For instance, traders on Bybit can maintain BTCUSDT perpetual contracts as long as they meet margin requirements, regardless of market volatility.

The funding rate mechanism keeps perpetual contract prices aligned with the spot price of the underlying asset. It involves periodic payments between traders, typically adjusted every eight hours, based on the difference between the contract price and the spot price.

The chart above displays the BTCUSDT perpetual contract on Bybit’s trading platform.

If a trader holds a $10,000 long position in BTCUSDT, and the funding rate is 0.0100%, the funding fee would be $1.00 (calculated as $10,000 × 0.0100%). This fee is paid to holders of short positions. Conversely, if the funding rate is negative, short traders would pay the fee to long traders.

Bybit’s platform displays real-time funding rates and countdowns to the next settlement, helping traders plan their positions effectively.

Perpetual futures contracts on Bybit offer traders the opportunity to use high leverage, sometimes up to 100x. This means that with a relatively small margin, traders can control a much larger position.

For example, as shown in the image below, Bybit allows traders to select their preferred leverage level, ranging from 1x up to 100x, depending upon their risk tolerance and trading strategy.

Margin Requirements for Perpetual Positions

To maintain an open position in perpetual futures, traders must keep their margin balance above the required minimum, known as the maintenance margin. On Bybit, this requirement depends upon the size of the position and the leverage used.

: Traders should monitor their margin and leverage in order to accurately track their P&L and avoid liquidation.

For details on P&L calculation, refer to the section on Margin Requirements and 

Bybit’s platform shows real-time data for P&L, margin balance and leverage. Understanding how these figures are calculated helps traders make informed decisions. For example, knowing the unrealized P&L formula lets traders anticipate how price changes impact their positions.

How to Trade Perpetual Futures on Bybit: Step-by-Step Guide

Bybit offers a user-friendly and feature-rich trading platform designed for both beginning and experienced traders. It provides real-time market data, advanced charting tools and a range of order types, enabling traders to make informed decisions.

Sign up on Bybit and Complete the KYC Verification

To sign up on PC/Desktop, follow the steps below.

To sign up on mobile, follow the steps below.

Deposit Funds Easily With Fiat or Crypto Options

 on Bybit, you can use two methods, as follows.

This provides flexibility for users to fund their accounts easily.

Manage Orders: Place, Adjust or Close Trades

: Modify the margin by increasing or decreasing the allocated funds to manage risk or leverage.

: Monitor this key price indicator to avoid liquidation risks.

 tab to cancel any open orders as needed.

 and confirm to secure your gains or limit losses.

 orders to automatically trigger based on your ROI (return on investment) preferences (as shown in the image). This helps manage your trades proactively.

How to Use Bybit’s Position Calculator to Open Perp Positions

 helps traders estimate key values, such as profit/loss, target price, liquidation price and entry price to manage their positions effectively. To use the Position Calculator, follow the steps below.

: Click on the calculator icon on the trading page.

Enter your entry price, closing price, quantity and leverage. For instance, with an entry price of $60,000, a close price of $75,000 and 0.5 BTC at 100x leverage, your estimated profit would be $7,500.

Set your entry price, quantity and ROI to find an optimal target price. For example, an entry price of $60,000 with a 50% ROI gives a target price of $60,300.

Input your leverage, entry price and position size to see the estimated liquidation price. For example, using 100x leverage with an entry price of $60,000 shows a liquidation price of about $59,700 USDT, accounting for fees.

Input multiple entry prices and quantities to find your average entry price. For example, if you enter prices of $60,000, $64,000 and $56,000 with different quantities, the average entry price would be $59,000 USDT.

: Use the calculator regularly to refine your trading strategy and manage risks effectively.

Key Features and Benefits of Trading on Bybit

Bybit offers the following trading features and benefits.

Trading Strategies for Crypto Perpetual Futures

Trading futures involves speculating on the price movements of underlying assets, allowing traders to leverage their positions and potentially maximize returns.

How to Get Started With Bybit Crypto Perpetual Derivatives Trading

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards