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

Investing

Keen on the potential of earning high yields? Learn what is liquidity mining and why it's one of the best passive income strategies.

In recent years, the use of blockchain and cryptocurrency has grown rapidly. While the main cryptocurrency investing strategy is to purchase and hold a crypto until it increases in value, also known as 

ing (holding on for dear life), there are several additional methods you can use instead to earn passive income. One such strategy involves liquidity mining, which leverages on the 

Simply put, liquidity mining is a way for users to earn a steady stream of passive income by using their cryptocurrencies to provide liquidity for 

 (DEXs). By providing liquidity, you’ll be rewarded with trading fees and governance tokens. In this article, we’ll be exploring what liquidity mining is, how you can start earning passive income with it, and its benefits and risks.

Before we learn more about liquidity mining, let’s take a quick look at DEXs, which make liquidity mining possible. 

Traditional finance exchanges typically use an order book model. An orderbook is a centralized database that stores all the buy and sell orders at different prices that have been inputted by users. Should there be a match between the buy and sell order of two different users, the transaction will then be carried out. 

DeFi introduced a new order book mechanism, known as the 

. AMMs facilitate permissionless cryptocurrency trading between users by utilizing 

, removing the need for a centralized entity to match transactions. These pools are created with smart contracts and are operated by algorithms, making them fully autonomous.

These pools achieve deeper liquidity as participants deposit their cryptocurrencies, allowing for more capital-efficient swaps for users, minimizing 

 and maximizing the number of cryptocurrencies they can receive.

 is a DeFi mechanism in which participants provide some of their cryptocurrency assets into various liquidity pools, for which they receive tokens and fees. Participants who provide their cryptocurrencies are known as liquidity providers (LPs) and often receive an 

, which they can eventually use to exchange for a percentage of the trading fees earned by the platform. Distribution of fees is based on the amount of liquidity each provider has contributed.

Liquidity mining gained significant traction in the summer of 2020, which is also known as DeFi Summer. DeFi became more widely known in the market, and the architecture of efficient and permissionless trading brought a lot of market participants on board. At the same time, protocols were offering extremely high rewards, with the 

 (APY) offered by some protocols reaching triple digits or even more, fueling DeFi’s growth even more.

Liquidity mining thus became extremely profitable, especially for LPs who could begin providing liquidity with large sums of capital, allowing them to grab a bigger portion of a protocol's transaction fees distributions. This in turn also improved liquidity within pools, making it more attractive to trade and increasing the activity taking place on the protocols.

Currently, the APYs offered by most protocols have come down significantly. This is, however, a relatively good sign, as it demonstrates the market is maturing and makes it more sustainable for market participants.

Nonetheless, activity on DeFi protocols is still high, with market participants constantly seeking the next best opportunity.

To begin liquidity mining, you can start with one of the oldest protocols: Uniswap.

Other protocols users can consider providing liquidity to are 

, one of the older DeFi protocols. Curve is recommended for users with a smaller risk appetite, given its lower risk of impermanent loss with stablecoin swaps (see below under 

Now that we understand what liquidity mining is, it’s time to learn about the benefits of utilizing this investment strategy. When you provide assets into liquidity pools, you can be confident in the returns that your investment will deliver. The primary benefits associated with DeFi liquidity mining are:

Liquidity mining is one of the best ways for cryptocurrency market participants to generate passive income. Providing liquidity into liquidity pools is often a passive strategy, as users just have to hold onto their LP tokens, and rewards will automatically be added to their LP token holdings.

More importantly, when users provide liquidity into a pool that manages to attract market participants, the growth in activity will translate to greater rewards for LPs. These rewards will automatically go toward the LP tokens held by the LPs. Thus, LPs can benefit from changing market conditions without having to actively manage their positions. 

Before beginning to participate in liquidity mining, it’s important to understand that your yield is proportional to the overall risk you take with your investment — which makes liquidity mining a beneficial strategy for any type of investor. If you want to make a sizable investment, the rewards you receive will proportionately match your contribution. The same holds true if you first want to dip your toes in before fully committing to the liquidity mining strategy.

DEXs can’t be operated unless a certain amount of liquidity is in place for traders who want to exchange tokens from different cryptocurrencies. When you provide liquidity in this manner, exchanges are incentivized to give you rewards for your contributions.

Since your investment is essentially used to facilitate decentralized transactions, your rewards usually come from trading fees that accrue whenever trades occur on an exchange. Since your share of the liquidity pool dictates what your yields are, you can essentially estimate what your rewards will be before you’ve even invested.

When markets are active and there’s a lot of trading activity going on, the rewards provided by protocols can be relatively high — and significantly higher than simple bank deposits.

Distribution of Governance and Native Tokens

A core benefit of DeFi liquidity mining is that it allows for the relatively equitable distribution of governance via native tokens. Before liquidity mining existed, token distribution was largely unfair and imbalanced. In many cases, DeFi protocol developers would favor institutional investors over low-capital investors, due to the amount of funds that institutional investors have at their disposal.

DeFi liquidity mining provides low-capital and institutional investors alike with equal opportunity to obtain native tokens. These tokens give you a certain amount of voting power within the DEXs that you’ve invested in. When you have tokens for a specific exchange, you can use them to influence that protocol’s characteristics. The primary privileges of holding native tokens include:

Even though tokens are primarily used for governance, they’re highly versatile and can also be used to stake, earn money via yield farming or take out a loan.

Engaging in liquidity mining is permissionless. As long as a user owns a noncustodial wallet, such as 

, and holds onto a certain amount of cryptocurrency, they can provide liquidity. Rewards earned from providing liquidity can also be redirected into the pool, which grows the user’s base capital and stake in the pool, allowing them to receive a larger share of the rewards over time.

Liquidity Mining Benefits the DeFi Market

It can be argued that liquidity mining is an essential component of DeFi.

LPs play a part in making the DeFi ecosystem more robust, helping more people to participate in DeFi when they have access to more capital efficient swaps. This increased liquidity also permits more applications to be built to tap on the ecosystem.

One benefit of liquidity mining that’s often overlooked is the fact that it nurtures a trusting and loyal community, since many investments occur within new exchanges. When a liquidity mining program occurs, the investors who provide liquidity typically become active in the community, while the exchange itself continues to grow.

The individuals who provide liquidity also tend to use the protocol and hold tokens well after they’ve invested their cryptocurrency assets. With liquidity mining, the benefits don’t end with the income that you receive as a liquidity provider. By continuing to engage with the protocol, you’ll continue to receive additional benefits.

Despite the many benefits of liquidity mining, there are also some inherent risks to be aware of before you engage in it. Once you understand the potential risks, you should be able to mitigate these issues and reduce their chance of occurring in the first place.

Before you begin liquidity mining, it’s important to know about 

 and how it can affect you. This can occur when the price of the tokens that you’ve contributed to liquidity pools changes in comparison to what it was when you first invested. A more substantial price difference makes it more likely that you’ll encounter an impermanent loss.

If the tokens have a lower price when you decide to withdraw them than they had when you first placed them into the liquidity pools, you lose money. You can offset this particular risk with the gains you obtain from trading fees. However, the volatility of the cryptocurrency market means that you should be at least somewhat cautious when depositing your money into DEXs.

In addition, in the event that you receive more of a cryptocurrency that has decreased in price, then you would have made fewer losses by holding onto the cryptocurrency itself, instead of providing liquidity.

There are also some technical liquidity mining risks to be aware of that are inherent to any protocol. The more highly advanced the protocol, the more complex the source code that it runs on. This complexity means that protocols are open to technical liquidity mining risks. If you don’t perform an in-depth audit of the code, it’s possible for cyber criminals to exploit the protocol and the assets within.

Of the several liquidity mining risks in this guide, the one to focus on is the potential risk to the protocol and its project. Even though all projects can be exploited, it’s still highly recommended you perform extensive research on a project and its platform before you decide to place your assets into its liquidity pool. 

The research and due diligence you perform should provide you with an acceptable level of protection against hacks and similar exploitation. It’s also important that the projects you invest in are audited on a regular basis by independent agencies.

Despite the many advantages that come with decentralized investing, the system does have a few built-in risks that could arise. One of these involves the potential for 

, a type of fraud that occurs when liquidity pool developers and protocol developers decide to shut the protocol down and take all of the money that’s been invested in the project.

Since all decentralized protocols offer anonymity, projects can be started without any kind of verification or registration. One example is the now-defunct 

), whose developers closed the project in 2020 and ran away with $10.8 million of investor assets, allegedly via a backdoor coding mechanism.

If you don’t want to fall prey to liquidity mining fraud, it’s essential that you perform your due diligence to learn as much as you can about a project before investing in it.

Liquidity Mining vs. Other Passive Investment Strategies

Before you settle on an investment strategy that’s right for you and your portfolio, be sure to compare DeFi liquidity mining to other passive investment strategies. 

The first type of passive earning strategy to consider alongside liquidity mining is 

, which allows users to pledge their cryptocurrency as a form of collateral within proof-of-stake (PoS) algorithms. When users lock up their cryptocurrency, they’re helping to validate transactions and secure the blockchain. This is a rather passive strategy, as users can simply delegate their cryptocurrency holdings to validators.

Users who stake higher amounts typically receive higher rewards, similar to what occurs when liquidity mining crypto. 

Another clear advantage of staking is that the risks are comparatively low. While project failure is possible, liquidity mining risks are considerably more severe, given the volatility of the market and the increased chances for exploits. 

 interchangeably, it’s important to understand that liquidity mining is a subset of yield farming, which involves locking crypto assets in various blockchain protocols to earn passive income.

While liquidity mining results in an investor earning native tokens, the investments that occur with yield farming will result in the investor earning interest. The two strategies share similar benefits and risks.

Even though you now may have a firm grasp of the concept of liquidity mining, this strategy isn’t right for everyone — and may not be worth it for you personally, depending on your current investment strategy. To determine if liquidity mining cryptocurrency is right for you, make sure that you weigh the pros and cons. 

What Is Liquidity Mining: How to Profit from a Decentralized Ecosystem

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards