Phantom Wallet, with 7M monthly users, has integrated the Sui blockchain, marking its first support for a Move-based network and a significant step for Sui’s ecosystem. 

Daily Top Performer — Morpho Protocol (MORPHO)

The S&P 500 fell 0.19% as investors awaited the November jobs report, which may influence the Fed's anticipated rate cut. Coindesk Indices, an index measuring broader cryptocurrency market performance was up by 8.2%, with Bitcoin and Ether rising by 0.17% and 0.40%, respectively in the past 24 hours.

Today's top performer is MORPHO, which surged 54.0% following the launch of DeFi Saver's Automated Leverage Management for Morpho on Base.

Morpho Protocol (MORPHO), founded in 2021, is a decentralized Ethereum-based lending protocol that enhances crypto lending through a P2P order matching system. It allows customizable lending markets and features Morpho Vaults for various risk levels. Initially launched in 2022 with Morpho Optimizers for Aave and Compound, it later introduced Morpho Blue in 2024 for flexible lending markets. Morpho Labs continues to focus on developing Morpho while still supporting the original Morpho Optimizers. 

, enabling Automated Leverage Management. This includes Auto-Repays for unwinding and Auto-Boosts for leveraging up based on set threshold ratios. Users can configure their positions easily. The feature is available for several Morpho markets, such as cbETH/USDC, wstETH/USDC, and more, with additional markets to be added in the future.

Check Out the Latest Prices, Charts, and Data of 

Phantom Wallet, with 7M monthly users, has 

 the Sui blockchain, marking its first support for a Move-based network and a significant step for Sui’s ecosystem. This expands Phantom's multichain support beyond Solana, Bitcoin, and Ethereum, offering Sui users features like staking, swaps, and NFT storage across mobile and browser platforms.

Yesterday, BTC Spot ETF flows recorded a $148.8M outflow from GBTC, partially offset by a $145.0M inflow to non-GBTC funds, resulting in a net outflow of $3.8M.

" hints at a potential $FUEL airdrop happening earlier than expected, despite the Fuel points program running until January 2025. Speculation surrounds whether this refers to the airdrop or another development.

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Phantom Wallet Expands Multichain Support with Sui Integration

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.

BTC has finally surpassed the $100K mark, leading to increased bullish positioning in derivatives markets. This reflects strong sentiment and a desire for upside exposure in perpetual swaps and futures. Short-term implied volatility has risen as traders seek options to capitalize on the rally.

Please check out the report’s highlights.

BTC's successful breach of the $100K barrier has led to a noticeable return of perpetual swap markets to all-time high open interest levels, although the response has been somewhat muted. Earlier in the week, perpetual swap markets shifted their focus to ETH after BTC's repeated failures to break through $100K. While funding rates for both derivatives remained high and positive, open interest in ETH contracts increased at the expense of BTC positions prior to the breakthrough. Additionally, ETH trade volumes have constituted a larger-than-usual market share.

BTC Calls See No Significant Influx Post-$100K

The sudden rise in spot prices has triggered a sharp increase in demand for short-tenor options, as traders seek exposure to the upward movement. BTC's term structure inversion has driven short-tenor implied volatility levels above realized volatility. Although implied volatility for BTC is lower than that of ETH, open interest data shows that the influx of call option open interest in BTC markets wasn’t as significant as for ETH. Nevertheless, BTC's volatility skew remains strongly bullish.

ETH's options market showed the most bullish positioning ahead of the overnight spot move, while the perpetual swap markets for both major cryptocurrencies reflected strong positive sentiment. Open interest is heavily weighted toward OTM calls, signaling a robust preference for upside exposure as realized volatility starts to catch up to implied volatility. This demand for upside exposure is evident for both tokens, particularly with ETH's remarkable increase in call option open interest over the past 24 hours.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Dec 5, 2024): After BTC Turns $100K, Investors Are Still More Bullish on ETH

The cryptocurrency market is experiencing unprecedented growth, particularly in major assets like XRP, Cardano (ADA) and Stellar (XLM).

The cryptocurrency market is experiencing unprecedented growth, particularly in major assets like XRP, Cardano (ADA) and Stellar (XLM), whose tokens have seen substantial price increases (XRP up 444%, ADA 280% and XLM 512%). This surge is being driven largely by aggressive accumulation from whale investors, as well as cautious but optimistic sentiment in the crypto community. 

Meanwhile, interest in meme coins is declining as investors shift focus to more sustainable projects. The integration of AI in blockchain ecosystems and the emergence of hyperliquid token generation events (TGEs) are also reshaping market dynamics, indicating a transformative phase for cryptocurrencies.

Significant Growth in Major Cryptocurrencies

The report highlights impressive price increases for several major cryptocurrencies:

Despite these gains, general sentiment in the crypto community remains cautiously optimistic.

 activity is a key factor in current crypto market dynamics:

Since mid-October, there’s been considerable accumulation of Bitcoin by whale wallets, which have added a total of 91,856 BTC. This accumulation has played a substantial role in driving up BTC’s price.

In contrast, there’s been a decline in stablecoin holdings among these wallets, suggesting a strategic shift toward investing in cryptocurrencies, rather than choosing to hold stable assets.

The following several emerging trends are reshaping the cryptocurrency landscape.

Overall, our report underscores a transformative period in the cryptocurrency market, characterized by significant asset growth, strategic whale behavior and the integration of advanced technologies.

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Whales Accumulate Bitcoin as It Reached $100K; Emergence of AI Agent

Our monthly option volatility report delves into insights from options volatility to inspire your next crypto move.

Option volatility outlines a compelling narrative for Bitcoin as it approaches the $100K milestone. Leading up to the U.S. election on Nov 5, 2024, Bitcoin's implied volatility experienced a dramatic surge, with short-term implied volatility rising approximately 25 percentage points above post-election expirations. This spike indicated strong bullish positioning in the derivatives market as traders sought to capitalize on anticipated price movements driven by electoral outcomes.

In the immediate aftermath of the election, there was a sharp decline in short-term volatility, aligning with a rally in spot prices that, in turn, led to higher realized volatility. However, the decline in implied volatility didn’t reflect a long-term bearish sentiment — instead, it suggested a temporary easing of uncertainty regarding the election results. The term structure of implied volatility demonstrates a complex relationship: while short-term volatility dipped, longer-dated options remained stable above 50%.

The call/put skew indicates strong demand for bullish call options relative to bearish puts since the election, reflecting heightened upside exposure during BTC and ETH rallies. However, when BTC retraced to $91.3K, the skew shifted 6% toward puts, signaling bearish sentiment. This was inconsistent with futures markets, in which prices remained above spot levels, indicating ongoing bullishness. The skew toward OTM puts arose from increased demand for protective hedges, rather than from a lack of call interest. Ultimately, this suggests traders believe any sell-off would be temporary, supporting the idea that volatility is necessary in order for BTC to reach the $100K mark.

In contrast to Bitcoin, Ethereum (ETH) has emerged as a more consistently bullish asset in recent weeks. While both BTC and ETH exhibited similar volatility patterns immediately following the election, Ether has shown notable resilience and increased momentum, particularly in the wake of Gary Gensler's resignation. This political shift has positively influenced ETH’s market dynamics, resulting in a stronger demand for ETH options.

Ether outperformed Bitcoin during critical market events, including both the election and ETF announcements in 2024. Following Gensler's resignation, ETH gained significant traction, with traders increasingly focusing on Ethereum as a more attractive investment. This shift is evident in the significant drops in the ratio of BTC-to-ETH spot price, indicating that traders are reallocating their preferences toward ETH.

The divergence in implied volatility between BTC and ETH options further underscores this trend, as the ratio of implied volatility for ETH options has surpassed that of BTC, reflecting a stronger demand for ETH optionality. Historically, ETH has exhibited higher volatility compared to Bitcoin. This recent uptick in ETH's implied volatility reestablishes the typical pattern of ETH commanding a premium in the options market.

Moreover, the skew in options pricing has shifted in favor of calls for both BTC and ETH, but ETH's skew has remained more robust. This suggests a stronger bullish sentiment for ETH, as traders are positioning more aggressively for its price appreciation compared to that of Bitcoin. As the market continues to evolve, Ethereum's increasing dominance and the bullish signals from its options market position it as a leading contender in the cryptocurrency landscape, making it likely to outperform Bitcoin in the near future.

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Bybit X Block Scholes Option Volatility Report: November Option Volatility Report: Volatility on the Road to $100K

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What does a strong BTC price mean to the broader Bitcoin ecosystem?

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The conversation around the Bitcoin ecosystem has returned as the price of BTC reached another all-time high, over $90,000, for the first time in November 2024. High expectations from a pro-crypto U.S. administration, a fresh easing cycle from the Fed, strong demand for crypto ETFs and institutional adoption could all be driving forces behind BTC's strong performance.

On the other hand, the performance of the Bitcoin ecosystem projects and their related assets was mixed. The 

 of Bitcoin DeFi reached a new high, while the floor price of most ordinal inscriptions didn’t follow BTC's strong momentum.

In this article, we’ll look into what BTC record performance means to the broader Bitcoin ecosystem. The possibility of BTC's strong momentum creates tailwinds for sub-verticals within the ecosystem, and the chance of speeding up the adoption of Bitcoin scaling technologies as interest increases. 

 (DeFi) for Bitcoin could be one of the sectors that benefit from a high BTC price. Bitcoin DeFi is an emerging sector within the Bitcoin ecosystem that aims to leverage Bitcoin's security and infrastructure for DeFi applications. 

 (TVL) of Bitcoin DeFi has reached over $4 billion for the first time as the price of BTC surged to over $90,000. With BTC's price expected to rise further, overall liquidity in the Bitcoin network could increase and more BTC could be locked into DeFi protocols.

Figure 1: TVL of Bitcoin DeFi has reached $4 billion for the first time. Source: DefiLlama

 are some of the popular narratives among Bitcoin DeFi. These related projects are expected to benefit from increased interest, activity and liquidity in the Bitcoin network. For example, some BTC holders could look to generate yield from their idle holdings. BTC's increasing value might encourage some other holders to mint and use BTC-collateralized stablecoins.

The current bullish sentiment may create a positive feedback loop. Rising prices could fuel investors' optimism, driving further investment into the Bitcoin ecosystem and potentially leading to a self-sustaining growth cycle.

If the demand for Bitcoin DeFi is set to increase, the interest in Bitcoin's scaling solutions might also increase. That's because developers could take advantage of the market attention of the world’s leading crypto, as well as some of the recent technology breakthroughs under the hood, to build (

) on Bitcoin. This would especially apply to expanding Bitcoin’s 

 (L2) solutions, allowing the blockchain to handle transactions more efficiently. On top of that, building sophisticated 

Figure 2: TVL of Stacks — a major Bitcoin L2 — recovering from Q2’s decline. Source: DefiLlama

, a Bitcoin L2 that provides smart contract capabilities for the Bitcoin blockchain, might see increased interest. Data from DeFillama shows that Stacks' TVL has been gradually recovering from Q2's decline, and

, its native token, has posted a 20% YTD gain.

In addition, a strong BTC price could benefit BTC-related infrastructure. Projects such as 

, a Bitcoin-based noncustodial wallet that allows users to store and manage assets on Bitcoin, and Nomic, which bridges Bitcoin to the 

 ecosystem, could see growth due to the increased demand for interoperability, allowing Bitcoin to be used in DeFi ecosystems beyond its native network.

Ordinal Inscriptions Struggle to Regain Traction

 were some of the important narratives in the Bitcoin ecosystem in 2023. However, Ordinal inscriptions weren’t immune as the market trend turned sour in Q2 2024. As the price of BTC has rebounded, some of the ordinal inscriptions seem to have struggled to regain traction. Figure 4 shows the floor price of Runestone, which is the third-largest market cap ordinal inscription collection on CoinGecko. It hasn’t seemed able to follow BTC’s recent strong momentum, at least not yet. Although some other collections may have shown some traction recently, its floor price is still quite far from its previous peak.

Figure 3: Total market cap of NFTs on Bitcoin. Source: CoinGecko

Figure 4: Floor price of Runestone over time. Source: CoinGecko

BRC-20 tokens seem to be in a similar situation. For example, 

 have a $1.3 billion combined market cap, and take up over 80% of the total BRC-20 token market cap. They’ve been struggling to follow BTC's uptrend and largely remain in the same trading range that they’ve been in for months, notwithstanding some recent short-term rebound.

Philosophical Difference Could be a Challenge

The future development of the BTC ecosystem could still face multiple challenges — despite all the innovations that have been pushing the boundaries of the oldest blockchain — and community division is a major challenge.

There's still a philosophical debate within the Bitcoin community about whether Ordinal inscriptions and BRC-20 tokens align with Bitcoin's original purpose. While Bitcoin's 

 (or "digital gold") narrative is widely accepted in the community — and has even begun to win buy-in from the mainstream — Ordinal inscriptions and BRC-20 tokens may often be seen as more risky and speculative by nature, especially if they don't offer significant advantages. This contention could pose a challenge for both Ordinal inscriptions and the BRC-20 standard, at least from an investment perspective.

Suppose the market perceives Ordinal inscriptions and BRC-20 tokens as less useful or integrated into financial ecosystems such as BTC. In that case, their value may not be fully realized by the market, and their liquidity might also not be as high as for BTC — meaning price movements could be more volatile and less directly correlated with BTC's price. In that scenario, even a skyrocketing BTC price may not be able to directly benefit the Ordinal inscription space and BRC-20 tokens.

On the other hand, Bitcoin DeFi is painting a relatively rosier picture. Since Ethereum-based DeFi has been around for a long time, the concept is easy to understand and is being tested in the market. Extending that into the Bitcoin blockchain thus seems more digestible. Besides, the demand for staking, restaking, native yield and BTC-backed stablecoins has been increasing in proportion to the price of Bitcoin. At the same time, recent tech innovations seem to cater more to DeFi activities on Bitcoin, rather than improving the user experience of Ordinal inscriptions and BRC-20 tokens. 

The impact of Bitcoin's record-high prices extends far beyond mere numbers on charts. As we've examined throughout this analysis, a rising BTC price could create a cascading effect across the entire Bitcoin ecosystem. However, it's crucial to recognize that sustainable ecosystem growth requires more than just price appreciation. 

While record-high prices certainly attract attention and capital, they must be accompanied by fundamental improvements in scalability, accessibility and user experience. The challenge for the Bitcoin ecosystem will be to harness this increasing momentum to build lasting infrastructure and develop practical applications that extend far beyond speculative trading. 

Will the Bitcoin Ecosystem Benefit From a Record High BTC Price?

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