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

block-scholes-x-bybit-report.jpeg

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

flock.png

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

network3 tutorial.png

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.

2.png

Bybit Launches $50,000 Merch Design Challenge for University Students Worldwide

Bybit Learn

All About P2P Platforms

Some of the ways to make money with P2P trading on Bybit include crypto arbitrage trading, arbitrage with fiat, as well as buy and sell ads.

EN_2409-T35020_Learn_Read_to_Earn_728x90.png

earn_money_with_p2p_trading_1.jpg

earn_money_with_p2p_trading_2.png

earn_money_with_p2p_trading_3.png

earn_money_with_p2p_trading_4.png

earn_money_with_p2p_trading_5.jpg

earn_money_with_p2p_trading_6.jpg

earn_money_with_p2p_trading_7.jpg

Skinny_Banner-1600x400.webp

Pseudo-anonymity, fast transactions and 24/7 trading are a few of the reasons why cryptocurrency trading has become so popular in recent years. But for many people, buying and selling cryptocurrencies can be daunting. 

 may come to mind when we think about trading cryptocurrency; however, there are far easier ways to trade crypto and earn money without having to stare at complicated charts all day. One example is peer-to-peer (P2P) trading.

P2P trading involves two individuals trading cryptocurrency directly with each other without a middleman or third party. It’s beneficial to both parties as they get to select their preferred payment method and a price on which both parties agree. This type of trading is also referred to as over-the-counter (OTC) trading. 

Because you can trade directly with another person in either OTC or P2P trading, you get to enjoy fast transactions with privacy even while trading on 

Peer-to-peer trading is a great way to invest in cryptocurrency markets. Not only does it allow you to buy or sell cryptocurrency directly with another person, but it also lets you avoid some of the transaction fees that come with traditional exchanges. Here are five ways to earn money with P2P trading.

 is a profit-making trading strategy that exploits the price difference of the same cryptocurrency on different exchanges. It’s executed through the purchase and sale of the same asset to profit from the difference in price. 

P2P trading provides plenty of opportunities for arbitrageurs, because there are often significant price differences between exchanges. By using P2P trading to buy and sell crypto assets, you can take advantage of these differences and earn a profit.

It’s considered risk-free because the arbitrageur doesn’t take directional market risks when entering into trades. However, they must perform the trades immediately, or as quickly as possible, since the arbitrage opportunities close quickly.

For example, if Bitcoin sells for $10,000 on one exchange and $10,200 on another, you can buy it on the first exchange, and sell it immediately on the second exchange for more revenue. 

P2P trading also provides arbitrage opportunities with fiat money. With over 30 fiat currencies to choose from on Bybit, you have numerous chances to take advantage of the price differences between each fiat currency. But first, you have to do a little research and some calculations before making the purchase. Below is an example of how you can leverage price differences.

If the buy price is $21,328 (30,926 AUD) and the sell price is $20,872 (30,265 AUD), you’ll be losing $456 (sell price − buy price).

If the buy price is 28,796 AUD ($19,852) and the sell price is 29,174 AUD ($20,112), you’ll be making a profit of 378 AUD (sell price − buy price).

If you buy and sell only in the U.S. market, you’ll be taking a loss compared to trading in the Australian market. But if you own a multicurrency bank account, you can buy BTC in the AUD market at 28,796 AUD, and then sell it in the USD market for $20,872 (30,265 AUD), and you’ll earn an even higher profit of 1,496 AUD (30,265 AUD − 28,796 AUD).

This method allows you to post an ad on the Bybit P2P Trading platform, stating the asset you want to buy or sell, and the price for which you’re willing to pay or sell. After your ad is posted and other users see it, they’ll decide if they want to trade with you. 

If another P2P user decides to trade with you, they’ll send you a trade request. Once you have accepted the request, the two of you can complete the trade. 

A great way to reach out to a wider customer base is by setting a lower price than the current market price. You can also choose to set a higher price to earn more revenue. 

On Bybit, you can even make money by becoming a P2P merchant and 

. To become a merchant, you simply need to create an account on Bybit and then post at least two ads.

If you’re deemed an eligible merchant and meet all the requirements such as being online for at least 50 hours every week, you’ll earn a 

. And if you list ads for two different fiat currencies, you’ll earn twice the commission — 

As a top-ranking merchant on Bybit, you could earn up to 

 per fiat currency every week! To be eligible, you need to meet several requirements and be ranked among the top three merchants 

Bybit is a cryptocurrency exchange that offers P2P trading services, which means it allows users to trade directly with each other without the need for a third party or other intermediary. P2P users can trade cryptos faster, cheaper and more efficiently.

So, if you're looking to trade cryptos and earn money, 

Bybit doesn’t charge any fees for buying or selling crypto on its P2P platform. However, based on the payment method selected, traders may need to pay transaction fees to the payment provider. 

, including bank transfers, credit/debit cards and e-wallets. This makes it easy for users to deposit and withdraw funds from the platform in their preferred way.

Bybit has low barriers to entry, meaning it’s easy for anyone to start trading on the platform because you don't need much money. In fact, you can start trading with as little as $2!

Bybit takes security seriously and employs multiple layers of protection to safeguard user funds. In the first place, all its advertisers are required to complete KYC verification. Second, if your trade exceeds a certain transaction limit, you’ll also need to submit your KYC details for verification. 

Additionally, Bybit provides an escrow service to hold user funds in case of fraud or platform malfunction. If the seller does not release the coin within 10 minutes after receiving the payment, Bybit’s customer support team reserves the right to release the coin from the reserved funds to the buyer after verification. 

All of these steps serve to provide its users with a safe and secure trading environment.

Bybit offers 24/7 multilingual customer support to help users. The website also has an extensive FAQ section that covers all aspects of the platform.

Bybit is a global marketplace that allows users from all over the world to trade crypto. It offers trading in multiple languages, including English, Spanish, Russian and Chinese. It also supports over 30 fiat currencies for its P2P trading platform, including USD, EUR, JPY and KRW.

Getting Started With P2P Trading on Bybit

If you're looking to get started with P2P trading on Bybit, here are a few things you’ll need to know. 

 Head to the Bybit website and sign up for an account. Once you've done that, it's time to start trading.

 and find the cryptocurrency you wish to buy or sell, such as USDT. 

 and filter the advertisers by entering your desired 

. If this is your first time trading on the platform, you’ll need to create a nickname.

 Choose your preferred advertisement and click on 

 Enter the fiat currency amount you wish to pay and see how much USDT you’ll receive in return. Then click on 

 You’ll then be directed to the order page, where you’ll need to transfer your fiat currency to the seller’s account within 15 minutes. After verifying that all your details are correct, click on 

. You should receive the coins within 10 minutes, after which you can click on 

 to view them, along with your transaction history. If you still have not received the coins after 10 minutes, click on 

 and the customer support team will contact you.

If you want to trade at a higher transaction limit, you must first complete the KYC verification. Then head to 

 at the top right corner of your account and click on 

 to upload a copy of your passport. Next, you’ll have to complete a facial recognition scan. Verify your passport information, then click on 

. Once your KYC details are verified, you’ll be able to transact at higher amounts.

. It's simple, easy to do and can be quite profitable, if done correctly. There are a few things to keep in mind when using this trading method, however, overall it's a pretty straightforward process. With Bybit, you can trade confidently, knowing you're getting a fair price for your transactions. If you want to make more money through trading, but are put off by the complex tools necessary for Spot or Derivatives trading, then P2P trading is definitely worth considering.

How to Earn Money With P2P Trading on Bybit

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards