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

web3

Altcoins

Explainers

Aurory is a gaming studio that focuses on free-to-play web3 games. It has a complex ecosystem that contains multiple games, DApps and mini-games. Learn more.

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 gaming, make sure to check out Aurory. This gaming studio offers a great blend of aesthetically colorful art, complete quests, fun gameplay mechanics and PvP modes. In addition to all its entertainment options, Aurory also has some unique blockchain features. How does the Aurory ecosystem work — and why is it such a big deal? Keep reading to explore this intriguing project and learn about the AURY crypto token.

 is a gaming studio that focuses on free-to-play web3 games. It has a complex ecosystem that contains multiple games, 

 and mini-games. All of these products are united by Aurory's unique lore and custom art.

. Penno, an indie game developer who has focused on animation and art direction, is known for his aesthetically colorful art with an anime-inspired aesthetic. Meanwhile, Vadillo is a cryptocurrency investor with experience in the real estate development business.

The two teamed up together with the mission of creating a project that takes advantage of the web3 gaming craze while also offering its users real value. Aurory’s team now includes over 70 employees, including people with experience working on AA games, and its investors include 

Aurory hopes to create a blockchain gaming system that appeals to fans of the traditional gaming industry. Unlike many web3 game studios, it aims to include traditional gaming features, such as free-to-play games, competitive play, PvP rewards and aesthetically colorful art. Aurory believes that offering these features will ensure its games attract long-term players, instead of investors who abandon the ecosystem after a few weeks.

Aurory also stands out due to its commitment to simplicity and sustainability. Its one-token economy is designed to attract users without making its system seem confusing and complicated. Its crypto token, AURY, is also being carefully distributed in a way that prevents hyperinflation. Aurory's main goal is to create blockchain games that people will play for years to come.

The Aurory system is designed to run on the Solana blockchain, which uses both proof of history and 

 (PoS) mechanisms to increase scalability. This makes Solana ideal for a game studio that needs to be able to process thousands of transactions affordably and quickly. The blockchain framework allows Aurory to designate in-game assets as NFTs and in-game currency as crypto tokens. Users gain actual ownership over their digital assets, and the items they earn in the game have real-world value.

People who play Aurory games interact with the blockchain through the games’ websites. Aurory uses a blend of smart contracts and coding to create a convenient interface that's easy for Web 2.0 users to navigate. Participating in the Aurory world is as simple as creating an account and logging in to a site. Players who want to access Aurory's blockchain features can sync a crypto wallet in order to gain control over their 

Aurory’s complex ecosystem involves multiple games and several types of web3 products. Invested players can explore a variety of intriguing features.

Aurory's main focus is to offer numerous games with a major fun factor. Some of its games focus on things like competitive social play, while others prioritize play-to-earn (

) or solo play. You can play these exciting games through its site, which features both publicly available and early access games

If you like PvP game modes, you'll enjoy the 

 play-to-earn game. Players hatch NFT creatures, called Nefties, and then use them to defeat enemies in battle. Through PvP rewards, you can gradually upgrade your Nefties and access even more 

. There are multiple game modes, including ranked play and private matches.

 is an immersive RPG game. Players can collect, train, fight and trade as they wander through fantasy-themed lands. You can complete quests to discover lost relics, seek power stones to enhance your NFTs or earn rewards as you defeat enemies. This expansive world also offers competitive social play, and encourages people to interact with each other and make new connections.

Aurorians are playable NFT characters that represent the original citizens of Tokane. Each Aurorian has its own unique attributes. Holding Aurorians boosts PvP rewards, allows early access to new content, and provides more opportunities to get AURY in play-to-earn games.

 that you use in various game modes and systems do more than just provide exciting characters to collect. Once they're in your 

, you can trade them with other people. Some players like to 

 by selling Nefties, while others enjoy scouring the market for rare options that will help them win PvP-mode matches.

In the RPG-style game modes of Aurory, players have access to procedurally generated lands. Each region is divided into specific biomes, each with its own landmark, architecture and creature themes. However, every new land parcel is generated as free players discover it, so there are always unique and exciting regions to explore and purchase via land sales.

The items you earn in the RPG and PvP game modes can be sold through the Aurory marketplace. This provides a powerful incentive for free players to discover lost relics and start completing quests. The items you receive can be sold for real-world funds. If you're interested in moving up in the PvP modes, the marketplace is also a helpful place to buy power stones, lost relics and other items to level up your Nefties.

 is a revolutionary way to handle player inventory, offering a hybrid model of on-chain and off-chain storage. Items are automatically backed up to SyncSpace, and can then be DeSynced to be transferred to an external crypto wallet. Aurory lets people move items back and forth as desired, and SyncSpace is fully interoperable with multiple blockchains.

When you win games while playing in PvP mode, Aurory also offers bragging rights. Players’ profiles progress with each win, and the ranked system gives people in higher tiers more gameplay advantages.

 is a community hub in which players can discuss things like improving their skills or finding lost relics. It also lets people vote on the state of the game. DAO members can propose initiatives, suggest changes to the game, fund new projects and more.

Since its creation, Aurory has developed many promising features. The project has created the base of its ecosystem and successfully launched multiple games that run on Aurory. Its main goal for 2024 is to officially release 

. The game is currently in early access, but Aurory hopes to add more features, patch some bugs and release it to the public.

 includes the addition of rogue-lite gameplay, weekly challenges for completing quests and eSports competitions for competitive play. The team also hopes to upgrade some of their art, add more skins and design more biomes for players to explore.

The single-token model of Aurory means that the AURY token is used for everything from managing user votes to distributing game rewards. It's designed to be 

, and will be gradually released through gameplay, instead of flooding the market in airdrops. AURY’s total supply is just

, which Aurory plans to distribute according to the following plan:

Since its release in 2021, AURY has experienced many price fluctuations. At one point, in November 2021, the coin's price rose all the way to its ATH of $23.29, and one year later its price was just $0.30. However, once Aurory started successfully launching games, prices began to stabilize. For the past year, AURY’s price has mostly remained within a range from $0.50 to $1.78. Its price was $0.81 as of Apr 2, 2024.

This positive pricing trend seems likely to continue through the rest of 2024.CoinCodex 

 will keep rising and hit at least $3.86 by 2025 and $5.14 by 2029. This positive sentiment is supported by DigitalCoinPrice’s 

 that AURY’s price will reach $2.07 by the end of 2025 and $4.36 by 2029.

Looking to trade Aurory tokens? Bybit now offers the AURY/USDT Spot trading pair. To get started, you’ll first need to 

, fund it with cryptocurrency and navigate to the 

Right now, the future is looking bright for AURY. Since Aurory has begun to release some games, its crypto’s price has begun to rise. Furthermore, the coin's recent price increases have started to attract interest, which will help drive up prices further. If you're looking for potentially undervalued coins linked to exciting web3 startups, AURY might be the coin for you.

Keep in mind, however, that cryptocurrency is inherently volatile, and AURY has a past history of extreme price shifts. Before investing, you need to 

 the coin and consider your own investment strategies. Prepare for potential price drops, and take appropriate steps to 

Aurory's blockchain design is a welcome addition to the gaming industry. By adding gameplay mechanics such as NFT land sales and passive income, Aurory heightens its fun factor and creates invested players, and its competitive social play system has helped to boost the Aurory crypto token. Even if you don't plan on checking out all of Aurory's game modes, it's worth exploring its intriguing AURY crypto.

Aurory (AURY): Web3 Gaming With a Competitive P2E Economy

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards