Jan 6, 2025: Our weekly Institutional Insights explores the latest market developments — market performance, industry news, exchange-traded fund (ETF) flows, trending topics, upcoming events and token unlocks — to help you supercharge your crypto trading.

Weekly Highlight — Markets Snap Five-Day Loss Streak 

Investors are now seizing the opportunity to buy the dip in U.S. stocks after a five-day decline that erased over $1 trillion in market value. Wall Street has broken its longest losing streak since April, with the Nasdaq-100 rebounding 1.7% and the S&P 500 rising 1.3% on Friday, January 3. These gains slightly offset the week's sell-off, which had continued into the new year following a tough December.

Despite concerns about slowing earnings growth among tech giants like the Magnificent Seven, traders remain optimistic, especially regarding AI leader NVIDIA Corporation. The market believes that, as long as retail investors keep investing in AI, the associated stock market boom is expected to persist. 

Stocks reached their session highs in the afternoon after Mike Johnson was reelected as speaker of the U.S. House of Representatives, indicating potential support for a business-friendly agenda. Meanwhile, bond yields rose, with the 10-year hitting 4.6% following comments from Richmond Fed President Tom Barkin about maintaining restrictive rates. U.S. manufacturing showed modest growth, with new orders at their highest since early last year, while investors assessed economic strength against the possibility of slower interest-rate cuts.

Weekly Crypto Highlight — AI Agent Spring Coming

Many investors are eagerly anticipating an Alt Season, a period when altcoins typically surge in value. However, current market dynamics suggest we may not see a widespread altcoin rally. The sheer number of tokens, combined with limited liquidity, has led to what's known as altcoin dispersion, making it crucial to select the right sectors and tokens.

, which are thriving even as the broader market declines. This nascent sector is experiencing rapid advancements, and its associated tokens face less pressure from venture capital unlocks. Many of its top protocols lack centralized exchange listings, indicating more buyers may enter the market.

Those investors who missed previous opportunities, such as the DeFi summer of 2020 and the Alt Layer 1 trade, now have another chance. Instead of targeting individual AI agents, the best risk/reward strategy lies in investing in infrastructure plays, which serve as the foundational tools for the sector.

The leading AI agent player is Virtuals Protocol, a platform for launching tokenized AI agents on the Base network. By purchasing tokens like Luna by Virtuals (LUNA) and VaderAI (VADER), users gain governance rights over specific agents, which allows them to both influence development and share in profits. 

Recently, daily protocol fee revenues dropped significantly in mid-December 2024 as activity slowed for the holidays. However, speculation around agent-associated tokens surged as the new year approached. Currently, Virtuals Protocol generates over $1 million in daily fees, though this is 50% less than figures for early December. Despite these challenges, the VIRTUAL token has more than doubled in value, reaching a market capitalization of $4.6 billion.

Other highlighted opportunities include Zerebro, which is pivoting to a full-stack framework for AI agents; ARC, with its Rust-based framework; and 

 (GRIFFAIN), a natural language on-chain search tool. These projects are well-positioned for future growth in the evolving landscape of AI technology.

 as we delve into leading AI agent tokens and the past week’s market movements. 

Advanced

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Weekly Institutional Insights: Market Snaps Five-Day Loss Streak; AI Agent Spring Coming

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.

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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 Learn

Altcoins

Calcium is a dummy token created for the Shiba Inu ecosystem. It was originally designed to help with the process of renouncing BONE token contracts.

Due to the unique design of cryptocurrency, some cryptos can develop in highly unexpected and unusual ways. The saga of Calcium (CAL) has been one of the most controversial crypto events of 2023. Part of the crypto world is hailing it as a community-led token that will be the next big investment, while the developers behind the project are begging people not to buy it. What's going on with the Calcium token — and should you get involved? This guide will explain all the details so you can decide whether investing in CAL is worthwhile.

Calcium is a dummy token created for the 

 ecosystem. Originally designed to help with the process of renouncing BONE token contracts, Calcium has attracted attention from Shiba Inu community members who are unhappy with how its ecosystem is being run.

To understand what Calcium is, it's necessary to take a close look at the Shiba Inu ecosystem. This dog-themed decentralized finance (

) project contains many different features, including a main token called SHIB, a community-led 

. Just one of the many projects run by Shiba Inu, Calcium was originally intended to have only a small place within the Shiba Inu ecosystem.

Calcium was originally a dummy token that wasn’t meant to have any value as an investment or DeFi tool. Instead, it was created to 

 for Doggy DAO. People interested in joining the SHIB Army and engaging with the Shiba Inu ecosystem have to stake BONE to vote on DAO decisions.

 behind this system, developer Kaal Dhairya created the CAL token. The Shiba Inu system can use Calcium for minting BONE and renouncing BONE token contracts. Its purpose was to essentially lock away smart contracts and prevent any manipulation of the DAO. This token isn’t even applicable enough to count as a 

 or governance token. Instead, it’s solely used for testing and organizational purposes.

When the concept of Calcium was first discussed, it received almost no notice. Things changed after the token was officially launched on the Shibarium blockchain on Sep 15, 2023. When the token appeared on the ecosystem's decentralized exchange (

, a bot picked up over 50% of the supply.

This huge purchase attracted a lot of attention, and trading activity soared. Crypto investors who weren't aware of how the Shiba Inu ecosystem functioned started desperately buying CAL thinking it was the next big thing. On the 

 DEX, Calcium managed to acquire $154,000 in liquidity and reach 

As Calcium started to go viral, the Shiba Inu team took note. Dhairya released a public statement in a detailed blog post asking people not to trade the token, and even 

 to warn them again a few days later. He cautioned investors, saying, "This token is being created only for a specific purpose to mint and renounce BONE. Please do not trade this token as it will not have any future value or need. If someone is selling this please consider this as a scam.”

This announcement caused the value of Calcium to sharply decline. The exact amount of money lost following the Shiba Inu announcement is unknown, but some SHIB Army members claim that investors lost hundreds of thousands of dollars.

The controversy around Calcium's release and viral explosion ended up attracting certain community members who were displeased with how the SHIB team was managing its system. They realized that Calcium's unique position within the Shibarium network could provide them with some helpful benefits.

Since Calcium is part of the ecosystem, it's easily available to the SHIB Army. Furthermore, its status as a "discarded" coin made it appealing to those who were feeling let down by the 

 a few months ago. As one community member, 

, "$CAL has come to represent hope for those who have been hurt by how shytoshi has handled shib since the ryoshi left." By continuing to trade Calcium against the wishes of Shiba Inu’s team, users feel they can protest the way the ecosystem is currently running.

After the community takeover of Calcium, prices drastically increased. In just 24 hours, Calcium trading soared as the token 

. Initially, a lot of the encouragement for buying Calcium was coming from just a few disgruntled community leaders. However, as the developer got involved and kept trying to stop sales, more people began to participate due to the perceived humor of the situation. Since Shiba Inu was already a 

 ecosystem to begin with, the Calcium situation has turned into the ultimate meme.

SHIB Army members are discussing plans to turn Calcium into a truly decentralized token. They feel that other Shibarium tokens are too susceptible to influence from developers, so an abandoned dummy coin could better represent community members' wishes. If they capitalize on these plans, Calcium could continue to be a widely traded token — despite the developer's wishes. It could potentially be used to gauge interest in Shiba Inu as a whole and affect the prices of other related coins, like SHIB and BONE.

After a lackluster start with prices of approximately $0.03, Calcium prices quickly soared. With so much user interest, prices shot up shortly after launch and have remained high for several days.

 is currently hovering in the $0.04 to $0.07 range. Its all-time high of $0.075375 occurred on Sep 29, 2023 with an ATL of $0.03763611 on Oct 3, 2023.

It's worth noting that Calcium's pricing history has followed the same price trajectory as other meme coins, such as 

. If it continues to follow a similar path, it will probably reach its ATH sometime within the next few weeks, which will most likely be followed by a sudden drop, a significant rebound and then a gradual decline. Even if Calcium's movements don't precisely mimic Pepe's, expect big increases in the near future. Experts at Crypto News forecast a 

 in the upcoming days, with strong potential to generate profit.

However, keep in mind that CAL prices have relied heavily on community opinions. Each time Shiba Inu developers have spoken out against trading Calcium tokens, there’s been a large drop in prices. With lead developer Shytoshi stating that he 

 soon, there’s a chance that Calcium prices could drop sooner than expected.

Due to its unusual status as a highly-contested meme coin, CAL is classified as a high-risk investment. Some users could buy the token before its price spikes and generate profit from this coin's unexpected price changes. However, its cost will inevitably plummet, and when that happens, many people will lose a lot of money. According to the SHIB team, anyone trading the Calcium token is basically participating in a scam.

Much of the coin's worth relies on a few disaffected community members, and if people lose interest or the Shiba Inu team is able to address community concerns, Calcium will likely lose its future value. Some investors who have extra funds to play around with might enjoy obtaining a bit of Calcium for fun, but this isn’t a safe token in which to invest large sums of money. For those who want to try trading Calcium tokens, it's important to exercise caution. Avoid using it for 

, and consider hedging your bets with additional investments in more reliable coins. Finally, as always, 

Initially created to test some new features for the BONE token, Calcium has gone on a wild journey in the past few weeks. The combination of activism from certain community members and a highly unpopular development team has encouraged many people to start Calcium trading. Whether you're part of the SHIB Army or not, there’s a chance to profit from this unexpected price increase. Just remember to exercise caution and avoid overextending yourself on an unreliable meme coin.

Calcium (CAL): From Shib Army Creation to Community Takeover

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards