Our weekly crypto derivatives analytics report delves into macro events, the current state of crypto and trading signals from spot trading volume, as well as futures, options and perpetual contracts.

Macro movements shifted spot prices over the weekend, continuing crypto's January 2025 trend of influencing Monday's equity moves. However, this week's reactions were less pronounced, as indicated by lower implied volatility, even amid brief inversions in the volatility term structure. A high mid-week CPI print had minimal impact on spot prices, as reflected by weak sentiment indicators in derivatives markets, including volatile funding rates in altcoins, stagnant open interest in futures and options and a decline in the bullish skew of longer-tenor volatility smiles. 

In perpetual swap markets for major tokens, open interest remains stable, though funding rates have often been volatile and negative. Meanwhile, despite several inversions in ETH’s term structure, volatility expectations have decreased over the past month.

Please check out the report’s highlights.

Perpetual swap open interest has remained stable over the past 10 days since the drop on February 3, 2025, with no return to overleveraged levels, as indicated by funding rates. This trend aligns with futures, which haven’t regained their previous strong basis above spot prices, and options, which have lost some bullish skew toward OTM calls that persisted after the election. Additionally, trade volumes have decreased, compared to the previous two weeks, reflecting the lower volatility in the spot market during the same period.

Volatility Falls to Its Lowest Level in 2025

Outright volatility levels are at their lowest this year, reflecting diminished demand for optionality and lower expectations of future volatility. Despite this downward trend, the volatility term structure has inverted multiple times over the past month, typically late Sunday or early Monday. Reduced spot price volatility is mirrored in lower trade activity in options markets, with average trade volumes at their lowest for the year over the past week, while open interest in both call and put options remains stable.

Trade volumes in SOL put options dropped this week, with significant positions noted on Feb 2 and 9, 2025, coinciding with President Trump’s announcement of new tariffs and China’s retaliatory measures. In contrast, open positions in call options have remained relatively stable as spot prices decline from their Jan 19, 2025, all-time high. However, longer-dated call options continue to dominate, although the gap in open interest has narrowed.

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Bybit X Block Scholes Crypto Derivatives Analytics Report (Feb 12, 2025): Volatility Drops to Its Lowest Level in 2025; Solana Put Volume Drops

OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders.

Daily Top Performer — AI Rig Complex (ARC)

The S&P 500 gained 1.04%, driven by optimism despite strong inflation data and boosted by positive earnings. Gold nears record high at $2,925 on USD weakness, trade fears, and central bank demand. Coindesk Indices, an index measuring broader cryptocurrency market performance was down by 1.06%, with Bitcoin and Ether dropping by 0.79% and 0.60%, respectively in the past 24 hours. Trade these markets and more with up to 500x leverage on Bybit MT5 using this 

Today’s top performer is ARC, which surged nearly 7.0% following the debut of Arc Forge with AskJ, overcoming launch hurdles for a stronger future.

AI Rig Complex (ARC), launched in 2024, is a high-performance AI framework built with Rust, enabling intuitive, context-aware interactions. Its core platform, Playgrounds, integrates multiple LLMs and AI workflows, streamlining development while eliminating vendor lock-in. 

, a token launch platform built on Meteora’s DLMM and integrated with Jupiter routing, ensures deep liquidity, sniper protection, and synergy with ARC by routing all trades through it. Each launched token now features "arc" in its contract address as an emblem of the ecosystem. The first launch, AskJ by AskJimmy—an AI-driven trading platform—went live on Feb 13 at 9 AM EST. Despite initial technical issues causing frustration, the Arc team has resolved frontend problems and is preparing a post-mortem to improve future launches. Their focus remains on high-quality, vetted projects over volume.

Check Out the Latest Prices, Charts, and Data of 

OpenSea has launched OS2 open beta, a fully rebuilt marketplace for collectors and pro traders, featuring NFT and token integration, enhanced discovery tools, support for 14 blockchains, native cross-chain purchasing, and reduced fees (0.5% marketplace, 0% swap). The platform also confirmed the upcoming $SEA token, with eligibility based on historical usage and a simple claim process. While no release date is set, OpenSea emphasizes long-term sustainability and community support.

Yesterday, BTC Spot ETFs had $183M in net outflows, with GBTC losing $6.9M and non-GBTC funds $176.1M.

 its $SEA token, prioritizing historical users over recent activity. U.S. users are eligible, but the exact timing remains unannounced. Stay tuned for more details.

Beginner

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OpenSea Unveils OS2 Beta With Cross-Chain Trading and Upcoming $SEA Token

Diamante uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. Learn more here.

Though Diamante has been around for a while, its recent rebrand and upcoming token generation events have propelled it back into the news cycle. The Diamante chain's big claim to fame is that it's the first 

 in existence. What does this mean for the typical crypto user or investor? Keep reading this guide to learn more about how Diamante works — and why it could be so revolutionary.

 is an independently operated Layer 1 blockchain. It uses a unique hybrid protocol that involves running multiple consensus methods and operating several server nodes simultaneously. This results in a chain that’s particularly scalable, secure and decentralized.

 in 2018. Patel has 25 years of experience in business and finance, and Jetani is an engineer and long-time blockchain enthusiast. Much of the project was born out of Jetani's passion for creating a blockchain system that could meet the complete needs of its users.

. This rebrand included dropping half of the project's name, and redesigning the company's logo and website. Jetani explains that this rebrand is meant to help the chain diversify and expand. By emphasizing its broad ecosystem with a variety of applications, the team hopes to showcase that Diamante is more than just a standard blockchain. 

A lot of Diamante's design comes from a desire to address the 

. Many early blockchains realized it was difficult to create a system that was equally secure, scalable and decentralized. Inevitably, they ended up having to sacrifice one of these features to promote the other two. 

Diamante hopes that its unusual hybrid design can provide users with a blend of all three features. By solving the blockchain trilemma, Diamante believes it can become the most flexible chain in the world. Instead of only working for specific use cases, the blockchain hopes to be equally useful for any project. Whether a big business seeks a secure way of recording data, or a startup application is looking for scalable transactions, Diamante believes it can help.

The Diamante ecosystem infrastructure starts with a decentralized network of servers. Each server holds a copy of the same ledger that lists all transactions every user makes. Diamante has set up its servers to communicate with each other and 

 (FBA) is used to update the servers and reconcile any disagreements while syncing. This creates a tiered system that prioritizes resilience and decentralization. All of the various products within the Diamante blockchain network are run on this blockchain, while the software on Diamante’s website provides a convenient and straightforward interface for accessing its services.

By leveraging proprietary blockchain infrastructure, Diamante has been able to create an entire 

 so that any user who accesses it can enjoy all of its features.

Diamante calls itself “hybrid” due to its ability to use the same chain for drastically different purposes. It offers both centralized and decentralized features at the same time, so users can choose secure options for institutional applications or scalable options for 

A secure validation method is part of establishing concrete trust in a system, and Diamante has certainly delivered on this aspect of a Layer 1 blockchain. It uses a combination of proof of stake, proof of history and asynchronous Byzantine fault tolerance 

 to validate its chain. In addition to being secure, this also approach helps the chain stay compatible with a variety of other blockchains.

Diamante aims to future-proof itself by being resilient to attacks from quantum computers. This will help ensure its system remains secure even if this advanced new technology is developed.

. While settling a transaction on a larger chain like Bitcoin or Ethereum can take minutes, Diamante claims it can get settlements finalized in around four seconds.

 trends, Diamante's products are built to address real-world needs. It offers a variety of banking, payment and credit applications that people can use to manage their finances and work with brick-and-mortar businesses.

Diamante's architecture is set up to use as little computing power as possible. This results in an eco-friendly design and a system that doesn’t encourage its users to waste electricity and other resources.

Since 2024, Diamante has been working on a road map that’s meant to revolutionize global finance, and to center Diamante as a leading ecosystem. The company has already refined its technology and streamlined its marketing with a rebrand. It’s currently working on expanding to the U.S. and launching a new cryptocurrency token. 

 focuses on offering more services centered on payments and trade. It plans to integrate credit provision, banking, accounting and investment services in one convenient location. By 2026, Diamante plans to be a payments super-app whose users can access a variety of financial solutions from a secure and decentralized environment. 

To help launch its new token, DIAM, Diamante has hosted an 

 for its users. Eligibility for the airdrop is based on on-chain activity, so the more you use Diamante for its transaction and recording services, the more tokens you can receive. 

Diamante reports that over 600,000 people have already participated in the airdrop, and it will continue running until the token generation event on Feb 12, 2025. Users can claim their portion of the airdrop by 

. Syncing your wallet to your account will allow you to automatically claim DIAM.

DIAM, the native token of Diamante, will be used to manage a variety of fees and services throughout the blockchain ecosystem. It has a larger-than-average total supply of 

 that will be distributed according to the following plan.

Since DIAM is still quite new and hasn't been released on most markets yet, there isn't a lot of pricing data for analysts to discuss. An impressive 

 has been reported for token presales so far. However, with such a large token supply, users shouldn’t expect an extremely high price per token. 

Typically, crypto price predictions are heavily related to the amount of positive press a crypto is receiving. DIAM has captured a lot of attention from crypto influencers and generated 

. However, no one can quite agree on whether the token has a bullish or bearish outlook. While some social media comments praise the forward-thinking nature of the ecosystem’s creators, other commenters believe Diamante will struggle to compete with Solana and other similar chains.

Looking to trade Diamante tokens? Bybit now offers the DIAM/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, then fund it with cryptocurrency and navigate to the 

By leveraging proprietary blockchain infrastructure, Diamante could potentially become a critical part of the financial ecosystem. It's backed by a lot of reputable funders, and has a highly dedicated marketing team providing plenty of detailed information about how the project works. These are usually positive indications that a new crypto token will receive enough support to perform well. 

However, establishing concrete trust with an audience can take time, and there are some understandable concerns as to whether Diamante can deliver on all its claims. Though it does have some unique tech, other chains are providing similar services already. This uncertainty may combine with inherent market volatility to provide some issues for the DIAM token. Users who want to invest in it need to remain cautious and use smart 

The Diamante's blockchain’s hybrid design makes it a very promising Layer 1 project. Its ability to maintain numerous services across countless nodes could be quite useful. However, it's difficult to predict how many of its plans this highly ambitious project will actually accomplish in the near future. Interested investors should make sure to keep a close eye on Diamante.

Intermediate

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Diamante (DIAM): The First Hybrid Layer 1 Blockchain Ecosystem

Get started with Bybit trading competition at ease & never miss out on any opportunities to win bonuses and rewards!

The benefits you gain from joining trading competitions are boundless. You can make money, hone your trading skills, explore untried strategies and so much more. Bybit hosts a plethora of trading competitions, from small but frequent product-specific competitions held once a month or bimonthly to annual grand events like the 

 (WSOT) competition. These contests are a perfect avenue to help you reap profits, regardless of the market condition. 

With so many types of competitions, you may need more clarification on what types you’re eligible to join and what kind of rewards you can gain from them. With this handy guide, you’ll wonder no more as we break down the nitty-gritty of participating in Bybit's trading competitions.

With all its varying products, Bybit has many different kinds of competitions, ranging from 

. Regardless of the type of competition, participants are usually ranked on the leaderboard based on either profit and loss (P&L, or PnL) ratio or trading volume. 

P&L refers to the total amount of revenue and costs of your trading throughout the competition. Hence, when you compete to rank for P&L, you're competing to show how profitable you are.

P&L (%) = (Profit / Initial Equity + Total Deposits) * 100%

If you have the same P&L% as another participant, your total trading volume will then determine your ranking.

Trading volume measures the total number of contracts or crypto traded during the competition. If you achieve the same trading volume as another competitor, you’ll then be ranked based on the time you took to reach that trading volume. 

Benefits of Joining a Crypto Trading Competition

Participating in a crypto trading competition offers numerous benefits to uplift your trading journey. These competitions bring exciting rewards that can increase your gains during a bull market, or offset your losses and reignite your motivation to seek financial gains during a bear market. Moreover, the experience gained from live trading is invaluable, surpassing theoretical knowledge. Competitions provide real-life insights, opening your eyes to new opportunities.

Competing also inspires you to explore innovative trading strategies, going beyond your comfort zone and potentially yielding astounding gains. Comparing your performance with other traders on a level playing field allows you to gauge your abilities and even earn coveted bragging rights if you emerge victorious.

Please be aware of several registration criteria, as they’ll affect your eligibility to join the competitions.

Depending upon the specific competition, the registration criteria will look at the amount of net assets or net equity you have in your Bybit account. But what’s the difference between net assets and net equity? Net assets are your total assets minus your liabilities, and include unrealized gains and losses, whereas net equity excludes unrealized gains and losses.

Besides net assets and net equity, other elements also come to play in influencing your eligibility to join a competition. For instance, a single user shouldn’t have more than one account. If you create multiple accounts to join competitions on Bybit, you’ll be considered a fraud and will consequently be disqualified. Furthermore, you can only participate in one competition within the same time frame, except for grand-scale competitions like WSOT and Copy Trading Fiesta that hold several events within one competition. In such cases, you’ll be able to participate in more than one event simultaneously.

While you may only open one main Bybit account, you can open up to 20 

 connected to your main account, while four Subaccounts can be used to link to your Main Account for competitions. With Subaccounts, you can now join multiple competitions simultaneously to maximize your rewards.

Similarly, Market Makers and Pro users are prohibited from joining Bybit competitions, as they’re typically institutional traders who can make use of their high trading volumes to gain an edge in the competitions.

While most Bybit competitions only specify net assets or net equity as their registration criteria, certain competitions also require a referral link or code on top of the minimum net assets or net equity amount. Through joining such competitions, you can also expect exclusive rewards not found in other competitions.

Speaking of rewards, Bybit generally offers two types of rewards for its competitions: the prize pool and lucky draw. It’s important first to ensure you’re eligible for rewards, especially for P&L-ranked competitions. Even if the competition is ranked by P&L, you’ll still need to hit a minimum specified trading volume before you qualify for rewards. For example, the 

 held in September 2024 required participants to reach a derivatives trading volume of at least $10,000,000 before they could earn any rewards.

The main reward base for Bybit competitions is the prize pool. The prize pools can consist of hundreds of thousands of USDT, or even millions of USDT, depending on the scale of the competition. For large-scale competitions like WSOT and Copy Trading Fiesta, participants can enter several events under these competitions and obtain more rewards. 

It's good to embrace a positive and encouraging mindset as you participate in trading competitions. Observe and learn from the strategies employed by other contestants to refine your own trading plan. By analyzing their moves, you can gain valuable insights and give yourself a competitive edge. Remember, however, that it's also essential to think critically and avoid blindly copying others.

Always analyze your own performance and adjust your strategy accordingly, even in short-term competitions. Also, stay informed about market events and developments that can impact your performance, as this knowledge will maximize your chances of success. With the right mindset and strategic approach, you can excel in trading competitions.

Bybit is actively organizing trading competitions to provide users with a chance to maximize rewards. 

The TradeMasters Grand Prix trading competition and the World Series of Trading (WSOT) are among the biggest annual competitions on Bybit.

TradeMasters Grand Prix Trading Competition

Bybit’s TradeMasters Grand Prix trading competition is a year-long series of derivatives trading contests with a prize pool of 10,000,000 USDT. This year, it opens its first series with a prize pool of 1,000,000 USDT. The competition runs from Feb 18, 2025, 10AM UTC to Mar 11, 2025, 10AM UTC, with registration held between Feb 11, 2025, 10AM UTC and Mar 6, 2025, 10AM UTC. 

You’ll need to hold at least 5,000 USDT worth of crypto in your Bybit account in order to participate and be eligible for rewards, and you’ll be ranked based on either your trading volume or your PnL%. If you reach a trading volume of over $6 million, using specific tools like the 

, you’ll unlock an extra 50,000 USDT prize pool. 

Additionally, if you become a Bybit VIP during the competition period,, you’ll enjoy an exclusive welcome bonus of up to 800 USDT.

Launched in 2020, Bybit’s World Series of Trading (WSOT) has grown continually. In 2024, WSOT broke records with an all-time high of $100 billion in trading volume and over $137 million in profits for its participants. 

 offered a grand prize pool of 10,000,000 USDT and consisted of several trading competitions. 

 competition featured a prize pool of 7,150,000 USDT, split into four reward categories: Squad PnL% Ranking, Regional Squad PnL% Ranking, Individual Profit and Individual Trading Volume. There were also side competitions like 

, open to both Master Traders and Followers, and 

 a vote-based competition whose voters shared in an 800,000 MNT prize pool by voting for a top ten–ranked web3 project. 

How do I know my rewards distribution status?

There will be a Bybit Announcement post regarding rewards distribution and dates.

You can only collect your rewards after a competition ends, with the waiting period ranging from one week to a month. A risk review will be conducted after each competition ends, after which the rewards will be given on the date specified in the announcement post. 

As highlighted above, creating multiple accounts to earn more rewards in competitions is considered fraudulent behavior and will lead to disqualification. Other fraudulent behaviors include 

, volume faking, market manipulation and more. Be sure to read the competition’s terms and conditions carefully to avoid getting disqualified. 

Now that you’ve learned about all the rankings, registration criteria and rewards in Bybit trading competitions, you might be eager to flex your muscles in some of them. But before you do, remember that it’s important to carefully pore over the terms and conditions to ensure you get properly reimbursed for your efforts.

We hope our tips will help your competition journey be a fun and fruitful one. May you enjoy the process and savor the sweetness of winning!

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How to Join Bybit Trading Competitions (Ultimate Guide)

Bybit Learn

web3

Virtual Versions is a platform for creating personalized AI-generated 3D avatars, enabling users to take ownership of their own data. Learn more about it here.

As web3 development continues to progress, the question of identity is on everyone's minds. How do users represent themselves in the 

? Who owns the identities created by web3 participants? Virtual Versions aims to answer these questions. This personalized avatar technology hopes to solve data privacy issues and allow for a more personalized web3 experience. This helpful guide explores whether Virtual Versions' promising project is likely to be a success.

 is a platform for creating personalized AI-generated 3D avatars. Its service enables users to take ownership of their data. Each avatar owner controls their own digital information, and a biometric ID provides secure storage for private data.

, Unus Labs aims to make the concepts from 

a popular American science fiction film, a reality. Their vision for the future includes a complex metaverse where people can use a digital avatar to interact with a variety of games, social media sites and other services.

Virtual Versions was created as a way for participants in the Unus Labs project to interact with the digital world. The basic concept is to create avatars with generative AI technology so users have a realistic figure to represent themselves in a virtual realm. As the project has progressed, its creators have added more features to restore data privacy, prevent data breaches and enhance realism. Instead of making a digital realm where users are a product the company can sell to marketers, Virtual Versions tries to give customers the tools to control their presence in the virtual realm.

What Does Virtual Versions Aim to Achieve?

Virtual Versions aims to streamline the process of interacting with games and virtual worlds. Instead of making different accounts, users have a single image to explore the entire digital landscape with. The avatars designed by Virtual Versions can function within web3, 

The second goal of Virtual Versions is to provide users with a realistic and customizable 

. Their AI-powered digital twins let users upload a photo and then generate a 3D avatar that moves as if it's in a physical space. Virtual Versions attempts to make this look as photo-realistic as possible in both VR and 2D settings. You can also further customize your avatar to match your inner vision of how you appear.

The final paradigm shift that Virtual Versions hopes to tackle is data ownership. With Virtual Versions, the designs you make are wholly your own. Garments, game items and other digital assets are all your property, and can be traded throughout 

 marketplaces. Your personal data, such as where you go and what you do, also remains private and personal. A 

 aims to provide complete identity protection.

Virtual Versions uses cutting-edge AI generation techniques to help build avatars. Users input an image from their mobile app and within 90 seconds, Virtual Versions provides them with an AI-powered digital twin. Proprietary in-house software facilitates further customizations. You can fine-tune everything from facial expressions to hairstyles and control how your avatar looks in any virtual environment.

 techniques used to turn a physical entity into an avatar, Virtual Versions also relies on a 

 system that helps prevent data breaches and enhance personal control over data. Through a 

 layer, users can choose to monetize their data and receive digital assets. The blockchain also allows for the creation of truly unique items, such as clothes linked to users’ digital identities, and keeps track of assets and transfers.

Virtual Versions is a lot more than just a basic digital twin service. In addition to providing users with a physical entity for exploring digital landscapes, the company offers the following features.

 is a hub that lets you use your virtual version to explore the metaverse. You'll be able to connect with friends, trade wardrobe items, monetize your data collection, store your digital assets and more. VV Social makes it easy to link all your items to a single image that represents your metaverse presence. This comprehensive platform can be accessed through a convenient mobile app, and comes with plenty of remote assistance.

To manage user purchases and data monetization, Virtual Versions 

. To improve token value, various membership subscriptions allow the company to buy back tokens, which are then 

. This is important because Virtual Versions can only effect a paradigm shift if its cryptocurrency has actual value. By burning tokens and increasing scarcity, the company ensures their crypto is valuable enough to incentivize users during tasks such as data collection.

 tokens to provide remote assistance with transaction validations and network stability. In exchange for supporting the Virtual Versions blockchain, stakers receive block rewards that enable users to get involved in Virtual Versions while earning a 

Virtual Versions is a relatively new project, so it’s still in the early stages of achieving its goals. So far, its team has designed the basic system, launched the beta version of VV Social and released the VV token on exchanges.

 that in late 2023, Virtual Versions intends to publicly launch the platform and start collaborating with a variety of other brands and web3 projects. The next phase will be to add data monetization to the platform, generate 

 and integrate avatars into various games and other virtual worlds. The final stage is to expand the virtual environment into a digital world where people can purchase goods, create businesses and participate in a variety of other online communities.

VV is the token that makes data ownership possible for Virtual Versions users as they create unique items, fund their digital identities and receive compensation for their data. VV is a multi-chain token based on Ethereum and BNB Chain. With a total supply of 1 billion tokens, its current market cap is $583,801 (as of Sep 25, 2023). The 

Though Virtual Versions is still in the early stages of releasing its crypto, you can already find it listed on several popular exchanges. For example, Bybit offers the VV/USDT Spot trading pair. 

To get started trading on Bybit, you’ll need to first 

 and fund it with cryptocurrency. Then, navigate to the 

The concept of using machine learning to provide people with a digital twin could potentially be extremely popular. However, Virtual Versions is a new project that hasn't yet developed all its great ideas. There's likely to be some hype around 

, so it could be a good option for investors who like high-risk, short-term options. Unless Virtual Versions is able to actually deliver on their promises, however, its crypto doesn't seem likely to generate a lot of staying power. There's no harm in investing a little in it, but investors need to exercise caution and avoid overextending themselves. As always when investing, 

Virtual Versions has the potential to make navigating the metaverse as easy as finding your way in a physical space. The company still needs to prove it can launch all of its features and onboard enough companies to make its digital realm a community. If they can achieve this, the VV token could be quite profitable — and even if they don't, VV might still provide some exciting investment opportunities. This is definitely a token and a web3 project to watch.

Virtual Versions (VV): Empowering Users With AI Digital Twins

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards