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

Altcoins

Crypto

If you’re on the hunt for a unique gift or a last-minute shopper, here’s four gift ideas for a very merry crypto Christmas.  If you’re on the hunt for a unique gift or a last-minute shopper, here’s four gift ideas for a very merry crypto Christmas.

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The value of the crypto market has reportedly surpassed $3 trillion in 2021, thanks to a tremendous surge of interest in crypto assets like Bitcoin and Ether, which reached new all-time highs. In addition, the value of 

 is more than $10 billion, according to the NFT marketplace 

Demand for cryptocurrencies and NFTs continues to soar, and their potential for more returns makes them a gift that keeps on giving. There’s no better time than the holiday season to get friends, family and loved ones interested in the cryptoverse. 

Regardless of the gift recipient, good gift ideas abound, from meme coins – for quick conversation starters for digital natives, to tungsten cubes.

Gifting cryptocurrencies or NFTs is an especially great way to encourage someone to learn the ins and outs of these exciting new technologies, and to impress crypto enthusiasts. If you’re on the hunt for a unique Christmas crypto gift or a last-minute shopper in need of a quick gift, here’s a list of assets that are guaranteed to give your loved one a very merry crypto Christmas. 

If you pay attention to sports news, then there’s a chance you’ve heard of CRO and Crypto.com. For the uninitiated, CRO is the native token of Crypto.com, a platform for buying and selling cryptocurrencies which has an estimated 10 million users. 

In November 2021, Crypto.com announced that it had bought the naming rights for the Staples Center — home to the NBA’s Los Angeles Lakers and Los Angeles Clippers, the NHL’s Los Angeles Kings, and the WNBA’s Los Angeles Sparks — in a whopping 

, making it one of the most expensive naming agreements in sports. 

, the giant American retail office company, originally paid for the naming rights in 1999 when the arena was opened, and extended the agreement in 2009. Soon, the venue will be rebranded as the 

The name change will take effect on December 25, 2021 during the National Basketball Association’s annual game, which airs on ESPN and ABC. It’s a momentous occasion for the crypto industry that offers crucial brand awareness for both Crypto.com and cryptocurrencies in general. 

All this hype is good news for CRO. Also referred to as Crypto.com Coin, the currency was launched in an effort to develop merchants’ ability to accept payments using cryptocurrency. The token is designed to make transaction flows affordable, secure and seamless between crypto users and merchants who accept crypto as payment. One of Crypto.com’s goals is to drive mass adoption of blockchain technology through the use of payments, 

The iconic Staples Center will be re-named Crypto.com Arena from 25 December 2021. Image source: Crypto.com

The Staples Center name change unsurprisingly had a positive effect on the price of CRO, which quadrupled in November 2021 after the announcement. It also helped that in October 2021, Crypto.com launched a global ad campaign called 

 featuring actor Matt Damon. That ad marked the start of the market uptrend for CRO. 

What better way to commemorate the name change than to gift a loved one with CRO? Its market value has the potential to reach the moon once the name change is complete. If you want to get your hands on some CRO tokens as a Christmas crypto gift, sign up for an account with 

. It’s easy, and will take you just a few minutes to get started.

 have been the crypto space’s hottest trend in 2021. Even people with zero interest in crypto assets have heard the term being tossed around on social media. 

What are NFTs? In simplest terms, they’re digital assets that cannot be replicated. Each NFT is cryptographically unique and immutably recorded on the blockchain, making it an ideal vehicle for tracking the true ownership of assets such as art, videos, pictures, music, contracts — and even this article! As long as you’re the holder of the NFT, no one can doubt your sole ownership of a particular asset. 

One space where NFTs have had a major impact is in 

, giving artists a powerful tool for verifying ownership of digital art — and also cultivating scarcity. Unlike ordinary digital art, which can easily be copy-and-pasted, NFTs add a layer of uniqueness which makes it easy for artists and art collectors to verify that a particular file is the one and only original. 

The concept of an NFT might sound silly, and the technology has plenty of valid criticisms — but it’s serious business, with very real money involved. Earlier this year, an NFT of artist 

’s “Everydays: the First 5000 Days” sold for $69.4 million at an auction organized by the 

, which is a strong indicator of the growing mainstream appeal for NFTs.

NFTs have also created a market for so-called 

, which are basically digital images of pixelated or cartoon characters in a “profile picture” format. You may have seen some of these avatars being used as profile pictures on social media platforms like Twitter. Avatars by 

The beauty of NFTs is that their technology is completely decentralized and accessible to everyone, regardless of age, financial status and location. Several NFT marketplaces — where people can buy or sell NFTs — have spawned as a result of the NFT boom. You can even start 

 right this moment if you want to — why not consider NFT gifts?

If NFTs sound like a complex gift idea, perhaps you might be interested in something simpler — like a custom name on the 

 (ENS), a naming system that exists on the Ethereum blockchain. It’s an ideal gift for anyone who’s a crypto fan interested in completing Ethereum transactions.

ENS makes it easier to share and remember Ethereum wallet addresses. Instead of receiving payments that look like “0x45k9sh9rn842j9sd9” in your wallet, ENS lets you create a human-readable wallet address like “NotElonMusk.eth” that’s easier to remember and share. Having an ENS address is like having your own personal website link, but for crypto-related transactions.

The average cost of an ENS is around $5 per year, making it a memorable gift that won’t burn a hole in your wallet. Visit the 

 refers to an alternate reality where a representation of yourself — an avatar, if you will— can own plots of real estate, work, play video games, relax, or interact with other people around the planet. It’s a place where digital and physical worlds come together. 

The metaverse is made possible by a combination of the Internet, virtual reality and augmented reality working together with the blockchain. When you combine multiple existing blockchains with varying use cases, it becomes possible to create a diverse multi-chain network with vast opportunities for everyone. This is the basis of the crypto metaverse.

The idea of a metaverse is a popular sci-fi trope, with origins in novels like Ernest Cline’s 

You might have even recall seeing it more recently in the popular film 

No one knows with absolute certainty what the metaverse is going to look like as it progresses, but it spans physical and virtual realities and will likely feature a fully functional ecosystem. 

Even Mark Zuckerberg appears to be eyeing this new virtual world after his 

 during the rebrand of Facebook to Meta, when he described the metaverse as the “successor to the mobile internet.” 

Facebook users can already access a robust virtual reality environment by using 

 headsets. The social media giant also announced a 

 for “building the metaverse responsibly” which has distributed funds to organizations, nonprofits and academic institutions around the globe. 

The metaverse, however intangible, is clearly a hot commodity. The hype and speculation around NFTs and cryptocurrency in general have created a gold rush in the metaverse, and it’s not unlikely that the next generation of adults will buy their first home on the metaverse rather than in the physical world. 

The good news is that the metaverse is no longer a nebulous theory. There are already numerous crypto projects facilitating its growth. Below is just a sample: 

There are a lot of metaverse crypto projects out there, and more are being introduced almost daily. If you want to find more buy crypto Christmas gifts from the metaverse this holiday season, check out our guide to the 

The Bottom Line on Christmas Crypto Gifts

NFTs and cryptocurrencies are great gifts that are guaranteed to have novelty — and potentially exponentially growing value—for years to come. NFTs in particular make for memorable crypto stocking stuffers, due to the wide variety of crypto art and avatars available. These assets are affordable, accessible and available to everyone. Whether you’re shopping for a crypto newbie or seasoned crypto trader, create your account on 

’s website to check out the latest crypto prices and purchase your first asset today. 

Best Christmas Crypto Gifts You Should Know About (2022)

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards