Apr 21, 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.

 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 — Trump wants to fire Powell? 

US president Donald Trump is actively considering firing Federal Reserve Chairman Jerome Powell, following Trump's public criticism of Powell for not moving quickly enough to reduce interest rates. National Economic Council Director Kevin Hassett confirmed that the administration is examining this option, suggesting that Powell's actions have politically favored Democrats. Hassett argued that the Federal Reserve's decision to raise interest rates shortly after Trump took office was intended to undermine the economic impact of the tax cuts implemented during his administration, which were deemed inflationary. He further criticized the Fed for not addressing inflation concerns stemming from federal spending under President Biden, implying a lack of accountability.

During a recent press conference, Trump conveyed his dissatisfaction with Powell, asserting that if he wanted to remove him, it could happen "real fast." While he did not explicitly state his intention to dismiss Powell, his remarks highlighted the growing tensions between the White House and the Federal Reserve regarding monetary policy. Hassett defended Trump's frustrations, advocating for a focus on economic policy rather than interpersonal conflicts. This situation underscores the complex dynamics between the executive branch and the central bank, as Trump navigates economic challenges leading up to the next election.

Weekly crypto highlight — XRP ETF coming

HashKey Capital has officially launched the HashKey XRP Tracker Fund, marking the first investment fund in Asia designed specifically to track the performance of XRP, the digital asset integral to Ripple's global payment ecosystem. This fund is aimed at professional investors and offers a unique opportunity to gain exposure to XRP without the complexities of direct asset management. Investors can subscribe through cash and in-kind options, with the fund providing monthly liquidity.

Ripple, as an early backer of the fund, is looking to enhance its strategic partnership with HashKey Capital, which already manages Hong Kong–listed spot ETFs for Bitcoin and Ethereum. This collaboration not only solidifies Ripple's presence in the Asian market, but also opens avenues for future financial products, such as the potential tokenization of a money market fund on the XRP Ledger. Fiona Murray, Ripple's Managing Director for the Asia-Pacific region, highlighted that this partnership is part of a broader strategy to introduce more regulated cryptocurrency products for institutional investors in the region, aiming to foster a more robust crypto landscape in Asia.

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Weekly Institutional Insights: Trump’s desire to fire Powell might induce volatility; XRP ETF coming

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards.

Daily top performer — Pyth Network (PYTH)

The S&P 500 dropped 1.5% to 5,282.70 this week, down 5.9% in April and 10% year-to-date, led by tech losses. Real estate and energy outperformed, while political pressure on Fed Chair Powell and inflation concerns weighed on sentiment. Gold dipped 0.6% to $3,319 after a record high, as Powell’s stagflation warning tempered its rally. Despite the pullback, the uptrend remains intact. The Coindesk Indices, which tracks the broader crypto market, are up by 0.77%, with Bitcoin and Ether rising 0.64% and 0.72%, respectively, over the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today's top performer is PYTH, up 10.1%, following the launch of Pyth Entropy for secure on-chain random number generation by Soneium.

Pyth Network (PYTH),  is a blockchain oracle system that delivers real-time crypto price data to blockchains, enabling smart contracts to react to market changes. Soneium 

 Pyth Entropy, a tool for securely generating random numbers on-chain. Two apps, HandsNFT AI and 2p2e, are already utilizing Pyth Entropy to create unpredictable and engaging experiences.

Check out the latest prices, charts, and data of 

Hong Kong's Securities and Futures Commission (SFC) has approved a new Ethereum ETF with staking capabilities, allowing institutional investors to earn staking rewards. This approval follows recent changes to local laws, with China Asset Management (ChinaAMC) partnering with OSL Digital Securities to launch the ETF by May 15. The ETF will offer exposure to Ethereum staking, transforming it from a passive investment into an active participant in the Ethereum network. The staking process is powered by Kiln, with OSL providing custody and insurance services. The rewards will contribute to the ETF's net asset value, benefiting shareholders.

Yesterday, Bitcoin spot ETFs saw $25.9M in inflows, all from non-GBTC funds, while GBTC recorded no flow.

" and a points campaign called Drops, where users can earn points—potentially leading to an airdrop—by engaging with Linera content on X. To join, sign up on 

, complete tasks like joining Discord and interacting on X, then enter the campaign. Keep engaging to earn more points, but avoid spamming.

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Hong Kong approves Ethereum ETF with staking rewards, boosting institutional participation

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.

US president Donald Trump’s tariff policies are influencing both crypto and US equities. Last week, BTC and the S&P 500 rallied due to a 90-day pause in reciprocal tariffs (excluding China). Equities are slightly below their April 9 highs, while BTC is holding above $83K. Its implied volatility term structure has normalized, and the volatility skew has improved from last week’s bias toward out-of-the-money puts, though it hasn't fully shifted toward calls.

Please check out the report’s highlights.

Tariff pause briefly brings back trading volume

Since our last report, open interest surged on Apr 9, 2025, as crypto spot prices rose after President Trump’s temporary tariff pause, accompanied by a nearly $10B increase in trade volumes. However, trade volumes have since returned to mid-March levels, and open interest has declined from the April 9 highs. The initial price spike indicates the tariff pause surprised the markets, but the subsequent pullback reflects concerns over remaining tariffs.

After being inverted for much of April due to trade policy shocks and macro headwinds, BTC’s term structure has disinverted, with front-end volatility dropping significantly this week. Call and put volumes have been balanced, with calls slightly exceeding puts most days. Apr 9, 2025, reflected mixed market sentiment, as both call and put volumes rose, but puts were higher overall. Open interest remains greater in calls, and has increased slightly since last week, reaching its highest level for the month (more than double from the beginning of April).

Despite a rally on Apr 9, 2025 that brought ETH close to $1.7K, traders sought downside protection, leading to higher volumes in put contracts as compared to calls. Since then, ETHUSDT options volumes have declined, but open interest remains strongly weighted toward calls with later expirations, which have increased since last week. After being inverted for much of April, ETH’s term structure of volatility has flattened, with volatility compressing around the 70% mark across tenors.

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Bybit X Block Scholes crypto derivatives analytics report (Apr 16, 2025): Bitcoin put bias has moderated, but not yet shifted to calls

KiloEx (KILO) is a user-friendly DEX for perpetuals trading, offering high leverage, rewards, LSTfi integration and a robust multi-chain ecosystem.

 trading is one of the most lucrative areas for cryptocurrency enthusiasts if you know how to navigate the sometimes complex world of these contracts. Unlike standard futures, perpetual futures contracts have no expiration date, allowing traders to hold onto their positions as long as they prefer. You only exit a crypto perpetual (or “perp”) contract when you feel it’s the best time to execute your long or short trade. The lack of an expiration period makes these contracts attractive for traders.

Unfortunately, many crypto perpetual contract trading platforms are far from user-friendly. It seems like many perpetual crypto exchanges assume that only professional traders dabble in these contracts, and along with that assumption goes a second one — that these pros can navigate even the most complex user interfaces. As a result, finding a user-friendly perps platform is a challenge in the world of crypto trading.

 (DEX) that aims to change the status quo by providing a user-friendly environment for traders. Its platform also offers high leverage ratios, integration into the wider liquid staking token finance (LSTfi) ecosystem and generous reward programs for referrers and affiliates.

Thanks to its numerous benefits, this DEX caters to the needs of traders at all levels of expertise who are interested in crypto perpetuals. Operational since mid-2023, KiloEx launched its native token, KILO, in March 2025 to further enhance its platform's reward, staking and governance mechanisms.

 (BNB) that specializes in crypto perpetual futures trading.

 The platform prides itself on offering a user-friendly interface, high 

 ratios of up to 100x, multi-token vaults with generous APYs and a number of reward programs for referrers and affiliates.

Co-founded by Joey Ni (CEO) and Charles Gong (COO), KiloEx was originally launched on BNB Chain's mainnet in June 2023. As of mid-April 2025, the platform has additionally expanded its service coverage to five 

 (B2). This coverage allows KiloEx to access the ecosystems of three leading blockchain platforms — 

Manta, Base and Taiko are Ethereum-focused Layer 2 solutions, while opBNB is an efficient and low-cost optimistic rollup for the BNB Chain, while B

 is a platform linked to Bitcoin that acts as a major Bitcoin DeFi (BTCFi) enabler.

Because it’s a BNB-native platform, KiloEx's industry footprint is most notable within this blockchain's broader ecosystem. In fact, as Apr 17, 2025, KiloEx is the top DEX on the opBNB network by 

Using Layer 2 chains allows KiloEx to offer its users fast and low-cost transactions, which isn't always possible on a typical Layer 1 network. It's true that BNB Chain, the primary Layer 1 used by KiloEx, generally has much lower gas fees than Ethereum, the industry's leading 

 chain that’s notorious for its exorbitant costs. However, KiloEx's partner Layer 2 networks help drive costs and transaction times even lower. BNB Chain's current average gas fee is slightly over $0.10, while the opBNB Layer 2 rollup's comparable fee is only about $0.005.

In 2024, the platform introduced one of its most innovative features — the 

, which allows liquidity providers to stake multiple assets to earn high yields. That same year, KiloEx significantly expanded its partnership network, becoming an active player in the LSTFi ecosystem. LSTFi is a new stream within the DeFi industry that allows you to use 

 (LSTs) on various protocols for additional yield.

Having solidified its market presence in 2024, the project launched its native token, KILO, in March 2025. However, in mid-April 2025, KiloEx 

 and halted trading on April 15 as a risk management measure, pending investigation of the damage.

The Hybrid Vault is among the most innovative features offered by KiloEx. Essentially, it acts similarly to liquidity pools on other exchanges. Liquidity providers can contribute their crypto funds to the vault to support trading activity on the DEX and earn interest on their contributions, based on the fees earned by the protocol.

You can contribute a mix of coins to a KiloEx vault. Supported assets include 

Depending upon trading activity and the mix of coins contributed, you can earn APYs as high as 30%, making KiloEx one of the most lucrative choices for liquidity providers in this niche.

KiloEx uses a health factor calculation for this type of vault to keep your funds and the entire ecosystem safe. Based on the health factor score of your contribution to the vault, your funds could be liquidated if their value drops dangerously low.

Discounts are also offered for fixed-term deposits for established assets, such as USDT and USDC. Withdrawals for the fixed deposits are processed upon maturity, while all other withdrawals are processed within one to three "epochs," with each epoch on the platform lasting about three days. Thus, depending upon your contributed funds, you’ll wait anywhere from three to nine days to receive your crypto back.

The KiloEx platform also runs a generous referral program under which you can earn rewards for referring your friends to the platform. The amount you earn depends upon the trading volumes generated by the people whom you’ve referred. Additionally, your referees to the DEX can also benefit from fee rebates, again depending upon the volume of trade they generate.

There’s a tiered system, comprising nine levels, based on which you and your friends earn commissions and rebates. Under this system, even those referred traders whose monthly volume is at the lowest level (below $5,000) can still benefit from 5% rebates, while you also earn a 10% commission.

The table below shows the structure of this referral system with percentages for commission and rebates based on monthly trading volumes.

KiloEx offers an affiliate program for key opinion leaders (KOLs) with a certain level of social media following and influence in the crypto market. KOLs may apply to join the program by filling out an application, which is then considered by the project team within 48 hours.

To qualify for affiliate status, a KOL must have: 

Approved affiliates are provided a link to the platform, and are encouraged to invite their followers to trade on the KiloEx. If they invite at least five followers who trade at sufficient levels, the affiliates can start earning their commission. KOLs can earn up to 55% commission, depending upon the referred followers' trading activity.

KiloEx’s native utility token, KILO, is a 

 asset launched on BNB Chain. It’s used on the platform for governance, fee discounts on trades, rewards via 

, liquidity provision incentives and staking.

KILO is a supply-capped asset, with a maximum and total supply of 1 billion. The token’s supply allocation shares are shown in the chart below.

xKILO is an escrowed version of the KILO token. You can convert KILO to xKILO at a fixed rate of 1:1. The primary utility of xKILO is to provide boosted liquidity provision, which makes it possible to receive staking rewards. By locking xKILO on the platform, you can access special discounts and other benefits reserved for VIP-level users. Holding xKILO also grants you governance power to vote and influence the platform's future direction.

Unlike KILO, xKILO is nontransferable and isn’t tradable on the secondary market. The only ways to obtain xKILO are either to buy it with KILO or receive it via airdrops.

Platform users can earn points to qualify for KILO airdrops. Typically, you accumulate points by trading, depositing funds, referring others to the DEX, checking in to the platform and completing other specified eligible activities.

The project’s initial airdrop, Genesis Season, had an eligibility snapshot taken back in July 2024. Under the currently running airdrop campaign, Pioneer Season, users can earn points to receive KILO tokens for 180 days past the token generation event (TGE) in late March 2025 (i.e., until late September 2025).

Additionally, you can earn KILO tokens on Bybit simply by participating in the 

 event and holding BNB in your account. Every day at various random times, Bybit will take snapshots of your BNB holdings in your Funding and Unified Trading Accounts to calculate the number of KILO tokens you’re eligible for. The campaign will run through Apr 25, 2025, 11:59PM UTC, and you’ll have your share of KILO airdropped seven days after this date.

 market as a swap pair with USDT. If you don't have a Bybit account, you can easily 

, and access opportunities across hundreds of trading pairs and crypto products on the exchange's Spot and Derivatives markets.

As of Apr 17, 2025, the KILO token is trading at $0.039, which is 76.2% lower than its ATH of $0.1648 on Mar 27, 2025, and 17.3% higher than its ATL of $0.03344 on Apr 12, 2025.

Long-term price forecasts for KILO are mostly bullish. CoinCodex 

 at $0.0387 in 2027 and then rise to $0.135 in 2030 while PricePredictions 

When it comes to perpetuals trading, both traditional 

 (CEXs) and DEXs have often struggled to offer an intuitive trading experience. In contrast, KiloEx has made user-friendliness a cornerstone of its operations. With KiloEx, you can enjoy a streamlined trading process, access market trends info for thorough research, get an overview of the cryptocurrency market and conduct other activities via an interface that’s designed for anyone, irrespective of their familiarity with decentralized trading.

The platform also boasts a diverse range of other benefits not easily found in the world of perpetuals-based cryptocurrency trading — generous leveraged trading options, trading fee discounts, lightning-fast trades, low trading fees and an innovative Hybrid Vault system. Many of these benefits are thanks to KiloEx's collaboration with several Layer 2 decentralized platforms, which provide the technical infrastructure to enable low costs and fast order processing.

If you’re a crypto perpetuals enthusiast, KiloEx is definitely a platform to peruse.

Intermediate

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KiloEx (KILO): More than a DEX — a rewarding ecosystem

Bybit Learn

Blockchain

A Layer 2 blockchain is built on top of a main blockchain system. The Ethereum upcoming Dencun upgrade is likely to impact L2 blockchains. Learn more here.

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 are one of the most promising concepts in the crypto community. Many developers believe this technology can solve scalability issues and make blockchain usage significantly more affordable. 

Why are Layer 2s so important? Explore this guide to see how they work and to learn more about their exciting applications.

A Layer 2 blockchain is a secondary blockchain that’s built on top of the main blockchain system. It uses the main chain's security and other features while its own separate framework expands the system's capabilities.

Layer 2 blockchains were designed to solve the 

, which refers to the difficulty of making a network that’s simultaneously secure, decentralized and 

. A Layer 2 blockchain works to address the so-called trilemma by adding scalability to the network.

Layer 2s add a whole new space for processing transactions on a blockchain. Since a Layer 2 blockchain is built on the main chain, it inherits all of the main chain’s security and decentralization. Thus, it can perform extra transactions at a quicker speed so the network doesn't get congested as more users join.

This feature makes Layer 2 blockchains an essential part of modern 

 development. When so many people are relying on blockchains to store data, execute multiple transactions and provide security, scalability is in high demand. Chains with a Layer 2 can provide their users with additional speed and lower transaction fees.

A Layer 2 blockchain enhances scalability by changing how transactions are processed. When you use a Layer 2 blockchain, your transactions are first processed on it. Layer 2s use a variety of 

 for verifying these transactions as they occur. However, transactions aren’t fully confirmed until they’re posted on the main chain. To finalize transactions and transfer assets, there are occasional cross-chain communications whereby the Layer 2 blockchain will post performed transactions on the main chain.

Different types of Layer 2s handle blockchain tasks differently. Following are some of the common mechanics currently used by certain types of Layer 2 blockchain projects.

A rollup is essentially a type of bundled transaction. Instead of requiring the main chain to handle each transaction as it happens, a Layer 2 blockchain can collect and process several similar transactions before sending them all to the main chain at once. 

, even take the off-chain processing one step further by verifying the transactions with a 

 and then providing the validity proof to the main chain to finalize the transaction. Rollups improve transaction throughput because the main chain only has to look at a single block of transactions, making it easier to validate transactions. Most rollups don’t have a separate consensus mechanism. Instead, they just use the consensus mechanism of their parent chain.

Sidechains have even more independent operations than rollups. They run parallel to the main network while still operating on the same code or computational engine as the main chain. Sidechins often use their own consensus mechanism, without needing permission from the main network. They simply connect to the main chain occasionally to pass assets back and forth between the chains. In addition to having a separate consensus mechanism, sidechains usually have their own tokens and protocols.

 is a type of scaling solution that uses validity proofs to verify multiple off-chain transactions. These smart contracts rely on 

 to finalize transactions. If there’s an invalid transaction, the proof won’t let the transaction progress to the main chain. If it is in fact a valid transaction, the knowledge that all data is correct goes to the main chain, while the underlying transaction data is stored off-chain. The simple verification of validity proofs allows a smart contract to be executed on the main chain without requiring excessive amounts of data transfer.

Like any other blockchain feature, Layer 2 blockchains work well in some situations but can cause problems in others.

Following are the benefits of a Layer 2 blockchain.

Following are some disadvantages of a Layer 2 blockchain.

As soon as the Layer 2 concept was introduced, blockchain developers began experimenting with it. There are now countless Layer 2 blockchain options available for processing transactions. Following are some of the 

 stands out because it's governed by a decentralized autonomous organization (

). This community-led Layer 2 system on Ethereum has a modular structure. People can operate on different levels, depending upon the level of security and the type of transaction they need. It has many tools for deploying smart contracts, so it's popular with hands-on users.

Unlike many other Layer 2 blockchain projects, 

 isn’t attached to a single chain. Instead, it's a customizable rollup architecture that can be used on multiple blockchain networks. Developers can use Eclipse to deploy Layer 2 rollup services on systems like Celestia, 

. People can create rollups for all sorts of projects and find an off-chain scalability solution that suits their unique needs.

 that treat every transaction as valid. Transactions are only rolled back if they get fraud proofs that identify an invalid transaction, so the network doesn't have to spend a lot of time manually confirming blocks. This consensus mechanism requires people to provide a stake for each new block, so it maintains security even without extensive verification or time spent looking for fraud proofs.

 has an impressive speed of 40,000 transactions per second, and features very low fees. Its scaling solution 

 to create a streamlined and convenient system, and is a favorite with DApp developers, who can code on it with the 

 is one of the most popular Ethereum Layer 2 scaling systems. This Layer 2 blockchain makes it easy to develop new programs. Polygon is used for many different DApps and payment channel projects, and developers can also use Polygon’s software development kit to build their own sidechains.

 operates on Bitcoin. The Layer 2 blockchain provides a simple way for people to experience faster transactions in exchange for crypto micropayments. Though Lightning Network is fairly simple, it's the backbone of countless Bitcoin transactions. The option of selecting different payment channels based on desired transaction speed is quite useful.

How Will the Upcoming Ethereum Dencun Upgrade Benefit Layer 2 Projects?

The Ethereum blockchain is already known for its unusually high level of Layer 2 blockchain projects. A new update to Ethereum may provide even more opportunities for Layer 2 developers. The Cancun-Deneb Upgrade, also known as EIP-4844 (or more informally as “Dencun”) will introduce a foundation for a type of scalability called Danksharding. The 

 available in the Dencun update will provide a versatile, short-term data storage method that makes it easier to perform rollups. Layer 2 projects can benefit in many ways from the Dencun update.

Ethereum’s new Dencun system revolves around the concept of "blobs." Short for “binary large objects,” blobs are short-term data modules that allow rollups to temporarily use data without having to pay to permanently store all the data on the execution layer of the main chain. This greatly increases storage capacity so the network can handle more transaction data. It also makes it simpler to transfer data so the network can improve transaction throughput while maintaining its security guarantees.

The main reason users are so excited about the Dencun update is that it promises to lower gas fees on the main Ethereum blockchain. Since Proto-Danksharding encourages more Layer 2 development, it can help to move unnecessary transactions off of the main chain. This reduced transaction throughput results in lower transaction fees for all users whether or not they take advantage of the new rollup and data storage system.

One of the most impressive ways that transaction fees will be lowered is during transfers between 

, as it will become vastly cheaper to take information from a Layer 2 blockchain and transfer it to the main chain. Experts estimate that rollup transaction costs may cost less than $0.001 per transaction, making it possible to create a highly affordable payment channel so users can send transactions back and forth while paying barely any fees.

Proto-Danksharding uses a modular approach to data storage. The data needed for transactions can be broken down into “blobs” for storage, so users can access necessary data without needing to look at entire blocks. This enhanced data availability will allow people to use blockchains for a variety of web3 development projects. Currently, Ethereum isn’t a fully modular system, but this update paves the way toward increased modularity.

With their ability to provide scalability and affordability, Layer 2 blockchain networks appear to many observers as the future of blockchains. In just a few years, they've transitioned from an occasional novelty to an essential part of web3 development. There are payment channels, DApps and much more built on Layer 2 blockchain concepts. Not only are more and more smart contract projects operating on Layer 2s, but Layer 2 systems are increasingly being created to assist with these projects.

In addition to becoming more prevalent in the future, Layer 2s seem to be moving in a few specific directions. Especially with Ethereum's focus on 

 and Danksharding, it's likely that new Layer 2 blockchain projects will begin to prioritize modularity. 

Another trend to watch is that of enhanced security measures. Though Layer 2s get some built-in security from their underlying blockchains, options such as optimistic proofs often sacrifice security for speed on the second layer. Some projects are moving away from this approach and trying to create stronger security guarantees for their Layer 2 blockchain systems.

With their capacity to manage multiple off-chain transactions, Layer 2 blockchains can lower transaction fees, enhance transaction throughput and increase transaction speed. By using the architecture of their underlying blockchain, they can ensure users still enjoy a reliable and familiar experience. As demand for processing multiple transactions quickly increases, Layer 2 blockchains are likely to become an essential part of the blockchain universe.

Layer 2 Blockchain: Exploring the Extent of Its Scalability

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