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CEX

CEXs are platforms managed by centralized organizations that facilitate the trading of cryptocurrencies, offering high liquidity and user-friendly fiat on-ramps. Leaders like Binance, OKX, and Coinbase serve as the primary gateways for institutional and retail entry. In 2026, the industry focus is on Proof of Reserves (PoR), enhanced regulatory compliance, and hybrid models that offer self-custody options. This tag provides updates on exchange security, listings, and global market trends.

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Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
SpaceX Moves 1,163 BTC worth $105M to New Wallet – Analysts Believe Custody Over Liquidation

SpaceX Moves 1,163 BTC worth $105M to New Wallet – Analysts Believe Custody Over Liquidation

Elon Musk’s SpaceX has moved 1,163 Bitcoin to a new wallet on Thursday, worth $105 million, signalling a possible custody strategy. The move occurred

Author: CryptoNews

2025/11/27

The 2025 On-Chain Transaction Battle: Decoding the Four Major Perp DEXs

The 2025 On-Chain Transaction Battle: Decoding the Four Major Perp DEXs

Written by: @stacy_muur Original title: The Perp DEX Wars of 2025: Hyperliquid, Aster, Lighter, and EdgeX Compiled by: ODIG Invest Amid the major upheaval in the crypto market, perpetual contract DEXs are facing a real clash. Over the past few months, the four major platforms—Hyperliquid, Aster, Lighter, and EdgeX—have engaged in the fiercest competition in terms of growth, news, technological innovation, and institutional strength. Behind the booming trading volume, is it an incentive-driven bubble, or a genuine need for long-term capital investment? This report tracks the latest real-world transaction metrics, risk event performance, revenue data, and ecosystem expansion, attempting to answer a core question: Who are the true on-chain transaction giants who control the future? This report will dissect the truth behind the data. In 2025, the decentralized perpetual contract (Perp DEX) market experienced explosive growth. In October, Perp DEX's monthly trading volume exceeded $1.2 trillion for the first time, attracting widespread attention from retail traders, institutional investors, and venture capital. For most of the past year, Hyperliquid was dominant, peaking at 71% of on-chain perpetual contract transaction volume in May. However, by November, its market share had plummeted to just 20% as new competitors continued to seize market share. Lighter: 27.7% Aster: 19.3% EdgeX: 14.6% Thus, in this rapidly developing ecosystem, four major players have gradually emerged and are vying for enormous industry dominance: Hyperliquid — The veteran king of on-chain perpetual contracts Aster — A rapidly rising dark horse with massive trading volume and constant controversy. Lighter — A disruptor with zero transaction fees and native ZooKeeper. EdgeX — A more low-profile but potentially dark horse targeting institutions This in-depth research will separate the wheat from the chaff, conducting a comprehensive analysis of each platform from aspects such as technology, data, controversies, and long-term sustainability. Part 1: Hyperliquid – The Undisputed King Why was Hyperliquid able to reach the top? Hyperliquid has established itself as the industry-leading decentralized perpetual contract exchange, with a peak market share exceeding 71%. While competitors occasionally grab headlines with explosive growth in trading volume, Hyperliquid remains the structural core of the perp DEX ecosystem. Technical basis: Hyperliquid's dominance stems from a disruptive architectural choice: building a self-developed Layer 1 blockchain specifically for derivatives trading. Its HyperBFT consensus mechanism supports sub-second order finality and a performance of 200,000 transactions per second, comparable to or even surpassing centralized exchanges. Open interest (OI) is the real indicator: While competitors often display impressive 24-hour trading volume figures, the true indicator reflecting the real deployment of funds is the total open interest (OI) – the sum of the value of all perpetual contracts still in operation; trading volume represents activity; open interest (OI) represents the actual investment of funds. According to 21Shares data, in September 2025: Aster accounted for about 70% of the total trading volume, while Hyperliquid once dropped to about 10%. However, this dominance only exists at the level of "trading volume", which is the easiest indicator to be artificially amplified through incentives, commission rebates, market maker rotation, or shakeout activities. Based on the latest 24-hour open interest data: Hyperliquid: $8.014 billion Aster: $2.329 billion Lighter: $1.591 billion edgeX: $780.41 million Total open interest (OI) across the four major exchanges: $12.714 billion Hyperliquid's share: approximately 63%. This means that Hyperliquid holds nearly two-thirds of the open interest on major perpetual contract trading platforms, exceeding the combined total of Aster, Lighter, and edgeX. Open interest market share (24-hour data): Hyperliquid: 63.0% Aster: 18.3% Lighter: 12.5% edgeX: 6.1% This indicator reflects where traders actually keep their funds in overnight positions, rather than where they are simply trading for incentives or frequent turnover. Hyperliquid: A high OI/trading volume ratio (approximately 0.64) indicates that a large volume of trading activity translates into active, sustained positions. Aster & Lighter: Low ratios (around 0.18 and 0.12) indicate frequent trading but relatively little capital remaining in the market, which is typically characterized by incentive-driven trading activity rather than persistent liquidity. Full picture: Trading volume (24 hours) indicates short-term activity. Open interest (24 hours) indicates funds still at risk. OI/Trading Volume (24 hours) shows how much of the activity is driven by real funds and how much by incentives. Based on all OI-based metrics, Hyperliquid is the structural market leader: Highest open interest Largest share of invested funds The OI/transaction volume ratio is the strongest. The total open interest exceeds the sum of the last three platforms. Trading volume rankings may fluctuate, but open interest reveals the true market leader, and that leader is Hyperliquid. Tested: In the October 2025 liquidation event, a total of $19 billion in positions were liquidated, and Hyperliquid maintained perfect online time while handling the massive surge in transactions. Institutional Recognition: 21Shares has submitted its Hyperliquid (HYPE) product application to the U.S. Securities and Exchange Commission (SEC) and has listed the regulated HYPE ETP on the Swiss exchange SIX. Media reports, including those from market tracking platforms such as CoinMarketCap, indicate increasing institutional access to HYPE. The HyperEVM ecosystem is also expanding, although publicly available data has not yet verified specific claims of "180+ projects" or "$4.1 billion TVL". In summary, based on its existing filings, exchange listings, and ecosystem growth reported by tracking platforms such as CoinMarketCap, Hyperliquid demonstrates strong growth momentum and increasing institutional recognition, solidifying its position as a leading DeFi derivatives platform. Part 2: Aster – Explosive Growth and Controversy Aster is a multi-chain perpetual contract exchange that launched in early 2025 with a very clear goal: to provide users with high-speed, high-leverage derivatives trading on BNB Chain, Arbitrum, Ethereum, and Solana without requiring mandatory cross-chain bridging of assets. The project was not built from scratch, but was born from the merger of Asterus and APX Finance at the end of 2024, combining APX’s mature perpetual engine with Asterus’s liquidity technology. Explosive rise: Aster launched on September 17, 2025, with a price of $0.08. In just one week, it surged to $2.42, an increase of 2,800%. At its peak, daily trading volume exceeded $70 billion, and it once dominated the entire perpetual contract DEX market. Binance founder CZ supported Aster through YZi Labs and promoted it on Twitter, triggering a sharp rise in the token's price. In its first 30 days, Aster generated over $320 billion in trading volume and briefly held more than 50% of the perpetual contract DEX market share. DefiLlama removed from shelves: On October 5, 2025, DefiLlama, one of the most trusted data sources in the crypto space, removed Aster's data after discovering that the platform's trading volume was almost identical to Binance's—a perfect 1:1 correlation. Real exchange trading volumes fluctuate naturally. Perfect correlation only means one thing: the data is artificially manipulated. The evidence is as follows: The trading volume pattern is completely consistent with Binance (XRP, ETH, all trading pairs). Aster refused to provide transaction data to verify the authenticity of the transactions. 96% of ASTER tokens are concentrated in just 6 wallets. A volume/open interest ratio exceeding 58 (a healthy ratio should be below 3). ASTER's price immediately dropped 10%, from $2.42 to approximately $1.05. Aster's defense: CEO Leonard claimed that this correlation was merely hedging by "airdrop hunters" on Binance. But if that's the case, why refuse to provide data to prove it? Aster relaunched a few weeks later, and DefiLlama warned: "It's still a black box; we can't verify the data." Actual function: To be fair, Aster does have some real features: 1001x leverage, hidden orders, multi-chain support (BNB, Ethereum, Solana), and yield-generating collateral. It is building the Aster Chain based on zero-knowledge proofs to ensure privacy. But even the best technology cannot mask misleading data metrics. in conclusion: The evidence is as follows: Perfectly related to Binance Refusing transparency = concealing the facts 96% of tokens are concentrated in 6 wallets = centralized control DefiLlama being removed from app stores = damage to reputation Aster extracted enormous value by leveraging CZ's popularity and artificially inflated trading volume, but failed to build genuine infrastructure. It may survive thanks to Binance's support, but its reputation is permanently damaged. For traders: Extremely high risk. You are betting on CZ's narrative, not actual growth. Set tight stop-loss orders. For investors: Avoid. There are too many risk signals; there are better options (such as Hyperliquid). Part 3: Lighter — Technology has potential, data is questionable Technical advantages: Lighter is different. Founded by former Citadel engineers and backed by Peter Thiel, a16z, and Lightspeed (raising $68 million at a $1.5 billion valuation), it uses zero-knowledge proofs to cryptographically verify every transaction. As an Ethereum Level 2 blockchain, Lighter inherits Ethereum's security through an "escape pod" mechanism—if the platform malfunctions, users can retrieve their funds via smart contracts. Application blockchains (Level 1) lack this security guarantee. Lighter launched on October 2, 2025. Within weeks, its TVL reached $1.1 billion. Daily trading volume was $7-8 billion, and it had over 56,000 users. Zero commission = aggressive strategy: Lighter charges 0% commission for both market making and takers. It's completely free. This makes other competing platforms almost unattractive to commission-sensitive traders. The strategy is simple: seize market share through an unsustainable economic model, build user loyalty, and then monetize it. The test on October 11th: Ten days after the mainnet launch, the largest liquidation event in crypto history occurred, with $1.9 billion being liquidated. Highlights: The system handled 5 hours of chaos. LLP provided liquidity as competitors retreated. Problem: The database crashed after 5 hours, and the platform was offline for 4 hours. Bad news: LLP suffered a loss, while Hyperliquid's HLP and EdgeX's eLP made a profit. Founder Vlad Novakovski stated that they had originally planned to upgrade the database on Sunday, but Friday's volatility destroyed the old system first. Trading volume issues: These data clearly show the activity of accumulating points: 24-hour trading volume: $12.78 billion Open interest (OI): $1.591 billion Trading volume/OI ratio: 8.03 *A health level <3 or >5 indicates a suspicious condition, while 8.03 is an extreme case. For reference: Hyperliquid: 1.57 (natural growth) EdgeX: 2.7 (Medium) Aster: 5.4 (Worth watching) Lighter: 8.03 (Points farming behavior) For every $1 a trader invests, only $8 of trading volume is generated—quickly doubling their investment to accumulate points, rather than holding a real position. 30-day data verification: Trading volume of $294 billion vs. cumulative open interest of $47 billion = ratio of 6.25, still too high. Lighter's points program is extremely aggressive. Points will be converted into LITER tokens during a token generation event (TGE, Q4 2025/Q1 2026). The over-the-counter (OTC) market will price the points at $5-$100 or more. Considering the potential airdrop value could be tens of thousands of dollars, the explosive trading volume is understandable. Key question: What will happen after TGE? Will users stay, or will trading volume collapse? summary: Advantages: Elite Technology (Zero-Knowledge Verification Effective) Zero transaction fees = a real competitive advantage Inheriting Ethereum's security Top-notch team and investment support risk: A transaction volume/OI ratio of 8.03 indicates a high likelihood of excessive points farming. LLP suffered losses in stress testing. The 4-hour downtime raises questions. User retention rates after airdrops have not yet been verified. Key differences from Aster: No allegations of wash trading, and it wasn't delisted from DefiLlama. The high percentage reflects aggressive but short-term incentives, not systemic fraud. In summary, Lighter possesses world-class technology, but its metrics are worrying. Can it convert users who farm points into real users? Technically, it's possible, but historical experience suggests it's unlikely. For those who want to rack up points: TGE presents a good opportunity. For investors: It is recommended to wait 2-3 months after TGE to observe whether the trading volume can be sustained. Probability assessment: 40% will become the top three platforms, and 60% will remain points-based reward platforms with excellent technical support. Part 4: EdgeX – Institutionalized Professional Platform Amber Group's advantages: EdgeX operates differently. Originating from the Amber Group incubator, which manages $5 billion in assets, it brings together professionals from Morgan Stanley, Barclays, Goldman Sachs, and Bybit. This isn't a crypto-native team learning finance; rather, it's traditional finance (TradFi) professionals bringing institutional experience to DeFi. Amber's market-making DNA is directly reflected in EdgeX: deep liquidity, tight spreads, and execution quality matching centralized exchanges. Launched in September 2024, the platform has a clear goal: to achieve CEX-level performance without sacrificing self-custody. Built on StarkEx (StarkWare's proven ZK engine), EdgeX can handle 200,000 orders per second with latency below 10 milliseconds, comparable to Binance. Lower transaction fees than Hyperliquid: EdgeX outperforms Hyperliquid in all transaction fees: EdgeX taker percentage: 0.038% vs Hyperliquid percentage: 0.045% EdgeX market maker: 0.012% vs Hyperliquid: 0.015% For traders with a monthly trading volume of $10 million, this can save $7,000–$10,000 annually compared to Hyperliquid. Furthermore, for retail orders (<$6 million), EdgeX offers better liquidity—tighter spreads and less slippage. Real income, health indicators: Unlike Lighter's zero-fee model or Aster's questionable data, EdgeX generates real, sustainable revenue. Current metrics: TVL: $489.7 million 24-hour trading volume: $8.2 billion Open interest (OI): $780 million 30-day revenue: $41.72 million (147% increase from Q2) Annualized revenue: $509 million (second only to Hyperliquid) Trading volume/OI ratio: 10.51 (interesting, but requires further analysis) At first glance, a ratio of 10.51 seems bad, but the context needs to be considered: EdgeX launched with an aggressive points program to drive liquidity. As the platform matured, the ratio has steadily improved. More importantly, EdgeX maintained healthy revenue throughout the process—proving that the platform had genuine traders, not just users who farmed points. October stress test: EdgeX performed exceptionally well during the October 11 crash (when $19 billion was liquidated): Zero downtime (Lighter downtime was 4 hours) eLP vault remains profitable (Lighter's LLP is losing money). Liquidity providers offer an annualized return of 57% (the highest in the industry). At critical moments, eLP (EdgeX Liquidity Pool) demonstrated exceptional risk management capabilities, profiting from extreme volatility while competitors struggled. What makes EdgeX unique: Multi-chain flexibility: Supports Ethereum L1, Arbitrum, and BNB Chain. USDT and USDC are supported as collateral. Cross-chain deposits and withdrawals are supported (Hyperliquid is only available on Arbitrum). Best mobile experience: Official iOS and Android apps (Hyperliquid does not have a mobile app) A clean user interface makes it easy to manage your positions at any time. Asian Market Focus: Strategically entering the Korean and Asian markets through localized support and events like Korea Blockchain Week. Capitalizing on underserved regions while Western competitors vie for the same user base. Transparent Points Program: 60% used for trading volume 20% for recommendations 10% for TVL/Vault 10% used for liquidation/OI The statement explicitly states, "We do not reward wash trading." Indicators also confirm this—trading volume/OI is improving, rather than deteriorating as if it were simply a matter of racking up points. challenge: Market share: Perpetual DEX open interest accounts for only 5.5%. To achieve growth, aggressive incentives (with the risk of wash trading) or significant partnerships are needed. Lacking killer features: The EdgeX performs solidly across the board, but nothing particularly outstanding. It's a "business class" option—comprehensive and reliable, but not revolutionary. Unable to compete on fees: Lighter's zero fees diminish the appeal of EdgeX's "below Hyperliquid" advantage. TGE's launch is later: expected in the fourth quarter of 2025, later than its competitors. It missed the initial hype surrounding the first airdrop. In summary: EdgeX is the choice of professionals—steady excellence over flashy hype. Advantages: Institutional support (Amber Group liquidity) Real revenue (US$509 million annualized) Vault offers the best returns (57% annualized, still profitable during market crashes). Lower transaction fees than Hyperliquid The indicators are clear (no scandals involving manipulation or wash trading). Multi-chain flexibility + Best mobile experience risk: Small market share (OI only 5.5%) The trading volume/OI ratio is 10.51 (although improving, it is still relatively high). Lack of a single killer feature Unable to compete with zero-fee platforms Suitable for: Asian traders seeking localized support Institutional users who need Amber liquidity Conservative traders who focus on proven risk management Mobile-first traders Liquidity providers seeking stable returns In summary, EdgeX is likely to capture 10-15% market share in the Asian market, among institutional and conservative traders. It will not threaten Hyperliquid's dominance, nor does it need to, as it is building a sustainable and profitable market segment. It can be seen as the "Kraken of perpetual contract DEXs"—not the biggest or the most flashy, but stable, professional, and trusted by mature users who value execution quality over hype. For those who farm points: Opportunities are moderate; the market is less crowded than that of competitors. For investors: Small positions are used for diversification. Low risk, low return. Comparative Analysis: The Battle of Perpetual Contract DEXs Trading volume/OI analysis: Industry standard: Health ratio ≤ 3 Hyperliquid: 1.57 indicates a strong organic trading pattern. Aster: 4.74 is relatively high, reflecting a large amount of incentive-driven activity. Lighter: 8.19 High ratio, suggesting points-driven trading. EdgeX: The impact of the points program in version 10.51 is visible, but it is improving. Market share: Open interest distribution: Total Market: Approximately $13 billion in open interest Hyperliquid: 62%, Market Leader Aster: 18%, a strong second place Lighter: 12%, market share is growing. EdgeX: 6%, focusing on niche markets Platform Overview: - Hyperliquid, Mature Leader: Holding a 62% market share, with stable indicators Annualized revenue of $2.9 billion, active share buyback program All community models, reliable performance. Strengths: Market dominance, sustainable economic model Rating: A+ - Aster - High growth, high risk: Deeply integrated with the BNB ecosystem, gaining support from CZ. Facing DefiLlama data issues in October 2025 Multi-chain strategy promotes adoption Advantages: Ecosystem support, retail user coverage Key concern: Data transparency needs to be monitored. Rating: C+ - Lighter, a technology pioneer: Zero-fee mode, advanced ZK verification Backed by top investors (Thiel, a16z, Lightspeed) Performance data is limited prior to TGE (Q1 2026). Advantages: Technological innovation, Ethereum L2 security Key considerations: Business model sustainability, post-airdrop retention rate Rating: Not Completed (Awaiting TGE Performance) - EdgeX, Institutional Focus: Supported by Amber Group, professional-grade execution. Annualized income of $509 million, vault performance stable. Asian market strategy, mobile-first Advantages: Institutional reputation, steady growth Key concerns: Small market share, competitive positioning Rating: B Investment Reference: Trading platform selection: Hyperliquid: Deepest liquidity, proven reliability. Lighter: Zero transaction fees, advantageous for high-frequency traders. EdgeX: Lower transaction fees than Hyperliquid, excellent mobile experience. Aster: Flexible multi-chain architecture, deeply integrated with the BNB ecosystem Token investment timeline: HYPE: Tradeable ASTER: Stay tuned for further developments LITER: TGE anticipates post-launch evaluation metrics in the first quarter of 2026. EGX: TGE anticipates Q4 2025, assessing initial performance. Main conclusions: Market maturity: The perpetual contract DEX sector has become clearly differentiated, with Hyperliquid establishing its dominance through sustainability metrics and community consensus. Growth strategies: Each platform targets different user groups – Hyperliquid (professional traders), Aster (retail/Asian markets), Lighter (technology-oriented), and EdgeX (institutional investors). Key metrics to focus on: The volume/OI ratio and revenue generation provide a clearer picture of platform performance than volume alone. Future Outlook: Lighter and EdgeX's post-TGE performance will determine their long-term competitive position. Aster's future depends on its ability to address transparency issues and maintain ecosystem support.

Author: PANews

2025/11/27

BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!

BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!

The post BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!   appeared on BitcoinEthereumNews.com. Crypto Presales The sell-off on October 10 wiped more than $1 trillion from the market. As a result, investors are now looking for the best crypto presales in 2025 where pricing is still accessible, to shield themselves from ongoing market declines. Consequently, new initiatives like Avalon X (AVLX), BlockDAG (BDAG), and Tapzi (TAPZI) are becoming popular as good investment options. However, among the lineup, Avalon X is standing out as the next big crypto for 2025. Unlike assets affected by market pressure, this crypto backed by real world assets offers stability. Hence, experts view Avalon X (AVLX) as a significant wealth-building opportunity and one of the best altcoins to invest in 2025. Avalon X has announced a 25% Black Friday bonus on all purchases. A notable highlight in their RWA rollout. BlockDAG Technology Captures Attention For investors interested in early-entry opportunities, crypto presales have become a preferred route. BlockDAG, currently selling at $0.0078. This title is driven by its Directed Acyclic Graph (DAG) architecture that enables multiple transactions to process simultaneously. With a focus on making blockchain more efficient, backed by continuing development updates and certified security, it’s no surprise that this fast-paced presale has raised millions in a short period. Tapzi GameFi Creates Web3 Space Frenzy For investors seeking new crypto launches in 2025 to bolster their portfolios, Tapzi, dubbed as the World’s first Web3 gaming platform is gaining quick recognition. The project redefines GameFi by allowing players to stake and earn through their skill against each other. Currently, the TAPZI token is selling at the price of $0.0035 per token. The project is secured and backed by a fast-growing community. However, in the presale market, innovation alone doesn’t drive momentum, investors are more likely to support projects with clear, credible narratives. That’s where Avalon X crypto stands out,…

Author: BitcoinEthereumNews

2025/11/27

Best Crypto Presale Right Now: BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!

Best Crypto Presale Right Now: BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!

The sell-off on October 10 wiped more than $1 trillion from the market. As a result, investors are now looking […] The post Best Crypto Presale Right Now: BlockDAG, Tapzi And Avalon X Unveiling 25% Black Friday Bonus!   appeared first on Coindoo.

Author: Coindoo

2025/11/27

Crypto News Today [Live] Updates On November 27,2025 : Bitcoin Price,Grayscale Zcash ETF,Upbit Hack and More……

Crypto News Today [Live] Updates On November 27,2025 : Bitcoin Price,Grayscale Zcash ETF,Upbit Hack and More……

The post Crypto News Today [Live] Updates On November 27,2025 : Bitcoin Price,Grayscale Zcash ETF,Upbit Hack and More…… appeared first on Coinpedia Fintech News November 27, 2025 07:22:28 UTC World Liberty Financial Buys $7.7M in WLFI Tokens Amid Buyback Program World Liberty Financial continued its buyback strategy by purchasing $7.7 million worth of WLFI tokens at an average price of $0.16 per token. The program uses 100% of treasury liquidity fees for token repurchases, reinforcing value for holders and …

Author: CoinPedia

2025/11/27

Investor Slams Crypto’s Network Effects, Experts Disagree

Investor Slams Crypto’s Network Effects, Experts Disagree

The post Investor Slams Crypto’s Network Effects, Experts Disagree appeared on BitcoinEthereumNews.com. Santiago Roel Santos, founder and CEO of crypto investment company Inversion Capital, said cryptocurrencies are not subject to positive network effects, but other experts disagree. In a recent Substack post, Santos wrote that “crypto is priced for network effects it doesn’t have.” He also pointed to the network effect valuation system, Metcalfe’s Law, saying that it “doesn’t justify crypto’s valuation” and instead “exposes it.” Santos claimed that many of crypto’s network effects are adverse, due to congestion, such as higher fees, a worse user experience, and slower transactions. “Facebook didn’t get worse when it added 10 million users,“ he said. Other experts push back Some analysts agree that crypto may be overvalued, but others say Santos is applying the wrong framework. Santos admitted that new blockchains improved transaction throughput, but he claimed that this leads to lower friction, not compounding value. Still, he said that liquidity, developers and users can move while code can be forked, and value capture is weak. Related: DeFi is already 30% of the way to mass adoption: Chainlink founder Jasper De Maere, desk strategist at leading crypto market maker Wintermute, told Cointelegraph that deeming layer 1 blockchains overvalued due to negative network effects is “applying consumer-app logic to infrastructure,” expanding on the Facebook example. “Facebook’s back-end also had congestion and outages early on; those negative effects were simply internalized and abstracted.“ De Maere said that “users are not supposed to interact with L1s directly,” making monthly active users and user stickiness irrelevant. According to him, “the real network effects for an L1 exist at the validator, security and liquidity layer, not the end-user layer, and that’s where compounding actually happens.” Tomas Fanta, principal at the crypto investment firm Heartcore, said he disagrees with Santiago that fees worsen as usage grows. He said that on high-performance…

Author: BitcoinEthereumNews

2025/11/27

Important news from last night and this morning (November 26-November 27)

Important news from last night and this morning (November 26-November 27)

An ancient whale that has interacted with the Ethereum Foundation has purchased 7318.56 ETH on-chain since yesterday. According to on-chain analyst @ai_9684xtpa, an ancient ETH whale who interacted with the Ethereum Foundation 10 years ago is accumulating shares. Starting yesterday, he bought 7318.56 ETH on-chain at an average price of $3016.09, worth $22.07 million. His most recent purchase was 40 minutes ago. He previously sold 12575 ETH at the ETH high on August 9th, at a cost as low as $0.875, and currently still holds 10529 ETH. Edel Finance's affiliated wallet has been accused of "buying up" 30% of the token supply, and its co-founder has denied the allegations. According to Cryptopolitan, blockchain analytics platform Bubblemaps has accused Edel Finance of snapping up 30% of the token supply ($11 million) during its token offering earlier this month. Their report indicates that approximately 160 linked wallets coordinated funding through Binance and MEXC, completing the purchase through a multi-layered new wallet structure before trading began. Half of the tokens were transferred to 100 secondary wallets linked to MEXC. These wallets employed a uniform obfuscation strategy, and the contract code explicitly contained the secondary wallet addresses, proving they were deliberately hidden. Furthermore, Edel failed to disclose this operation on Telegram, Twitter, or in official documents, raising concerns about transparency. Edel co-founder James Sherborne responded that the team planned to acquire 60% of the token supply and then lock it in a vesting contract. However, Bubblemaps countered that their token economics only allowed the team to obtain 12.7% of the tokens through a 36-month vesting plan (including a 6-month lock-up period). Bubblemaps argues that if Edel were sincere, it should have allocated the tokens in advance according to token economics, rather than employing a hiding strategy, questioning the legitimacy of their actions. Edel Finance reportedly aims to bring traditional stocks to on-chain lending, and its team includes former State Street and JPMorgan Chase employees. Arthur Hayes purchased $245,000 worth of ENA tokens in nearly one hour. According to Lookonchain, Arthur Hayes is buying back the tokens he previously sold. In the past hour, he purchased 873,671 ENA tokens at $0.281 each, worth $245,000. Two weeks ago, he sold 5.02 million ENA tokens at $0.275 each, worth $1.38 million. Tether confirmed to the Uruguayan Ministry of Labor that it will cease operations in the country. According to Elobservador, Tether Holdings Ltd. has confirmed to the Uruguayan Ministry of Labor and Social Security (MTSS) that it will cease operations in Uruguay and lay off 30 of its 38 employees. Since entering Uruguay, Tether planned to invest $500 million, including building three data processing centers in Florida and Taqualumbo provinces, with an estimated power consumption of 165 megawatts; it also planned to build a 300-megawatt wind and solar power park. Of the total investment, over $100 million had been secured, with an additional $50 million allocated to infrastructure construction, which would be owned by the Uruguayan Electricity Company (UTE) and the National Interconnected System. The company warned that continuing the project under current conditions is economically unfeasible. The 31.5 kV transmission contract model and associated costs in Florida province have increased operating costs, despite Tether's repeated applications for more competitive electricity pricing since November 2023. In its proposed alternative, the company suggested switching to 150 kV transmission fees and amending the power purchase agreement, a solution that could have brought economic benefits to Uruguay's power company and avoided unnecessary engineering projects. SpaceComputer raises $10 million in seed funding to support secure blockchain computing from space. According to The Defiant, space computing startup SpaceComputer has raised $10 million in seed funding, co-led by Maven11 and Lattice, with participation from Superscrypt, the Arbitrum Foundation, Nascent, Offchain Labs, Hashkey, and Chorus One. Individual investors include Marc Weinstein, Jason Yanowitz, and Ameen Soleimani. The company plans to build a satellite network to provide secure computing services for blockchain from space. SpaceComputer will use the funds to launch satellites equipped with SpaceTEE secure computing hardware, creating an orbital network that enables privacy-preserving computing and secure record-keeping. Its co-founders stated that the opportunities that space presents for decentralized technology are undeniable, and more and more applications will incorporate space computing layers. Previously, JPMorgan Chase's digital assets division conducted tokenized value transfer tests using low-Earth orbit satellites. The company is known for its satellite tests on SpaceX's Falcon 9 rockets and is currently collaborating with universities such as the Technical University of Munich and Cornell Technology to explore extraterrestrial blockchain computing. SpaceX has transferred 1,163 BTC to a new address, worth approximately $105 million. According to Onchain Lens, SpaceX has transferred 1,163 BTC to a new address, worth $105.23 million. pump.fun appears to have transferred another 75 million USDC to Kraken. According to on-chain analyst Yu Jin, pump.fun transferred another 75 million USDC to Kraken 8 hours ago. In the 12 days since November 15th, they have transferred a total of 480 million USDC obtained from their ICO sale to Kraken. A few days ago, the pump.fun team stated that they had not withdrawn any funds, but rather dispersed the USDC obtained from the ICO sale so that the company could reinvest it in its operations. However, as soon as these 75 million USDC entered Kraken early this morning, 69.26 million USDC were subsequently transferred from Kraken to Circle (the USDC issuer). The United States will extend some tariff exemptions on Chinese goods until November 10, 2026. According to Jinshi News, on November 26 local time, the Office of the United States Trade Representative announced that it would extend the tariff exemptions imposed under Section 301 investigations concerning Chinese technology transfer and intellectual property rights until November 10, 2026. The existing exemptions were originally scheduled to expire on November 29 of this year. BlackRock's SIO fund's IBIT holdings have increased to 2.39 million units, a quarterly increase of approximately 14%. According to SEC filings, BlackRock’s Strategic Income Opportunities held 2,397,423 IBIT units as of September 30, worth approximately $155.8 million at the time, an increase of about 14% from the 2,096,447 units filed in June. A whale once again spent 12.82 million DAI to purchase 4,234 ETH. According to Onchain Lens monitoring, the whale that had been dormant for three months further spent 12.82 million DAI to purchase 4,234 ETH. To date, this whale has cumulatively used 16.08 million DAI to purchase 5,343 ETH at an average price of $3,010, and still holds 55 million DAI in available funds. Vitalik donated 128 ETH each to Session and SimpleX to support private communications. Ethereum co-founder Vitalik Buterin published an article on the X platform stating that encrypted communication tools like Signal are crucial for protecting user digital privacy. Currently, there are two key directions for advancement in this field: enabling permissionless account creation and ensuring metadata privacy. The instant messaging applications Session and SimpleX are actively exploring these directions. To this end, Buterin donated 128 ETH to each of them. However, Buterin pointed out that these two software programs are still imperfect and have not yet reached the ideal user experience and security performance. He stated, “Achieving strong metadata privacy protection requires decentralization, but decentralization is difficult, and users’ demand for multi-device support adds to the difficulty. At the same time, achieving Sybi/DoS resistance capabilities on the message routing network and the user end (not forcibly relying on mobile phone numbers) further increases the technical difficulty. These complex issues urgently require more professional attention and research.” DWF Labs launches $75 million DeFi investment fund According to The Block, crypto market maker DWF Labs has announced a new $75 million investment fund focused on decentralized finance (DeFi), targeting projects built on Ethereum, BNB Chain, Solana, and Base. This expands DWF's "incubation and venture capital building efforts," specifically seeking to invest in the next wave of founders focused on "solving real structural problems in areas such as liquidity, settlement, credit, and on-chain risk management, rather than incremental improvements to existing protocols." This includes tools such as perpetual DEXs with dark pools, on-chain money markets, and fixed-income or yield-generating products, areas "expected to see significant growth" as liquidity continues to migrate structurally on-chain. The new fund is funded by its own capital and is not currently accepting new investors. The World Federation of Exchanges is urging the U.S. Securities and Exchange Commission (SEC) not to allow crypto companies to "bypass" the rules. According to Reuters, the World Federation of Exchanges (WFE), an international non-profit organization of major global stock exchanges, stated in a letter to the U.S. Securities and Exchange Commission (SEC) this week that the regulator's proposed plan to allow crypto companies to sell "tokenized" stocks without regulation could harm investor interests. Several crypto companies plan to sell crypto tokens linked to listed stocks; however, to sell such products in the U.S., unregistered crypto companies need a no-action letter or exemption from the SEC. SEC Chairman Paul Atkins stated that the agency is working on developing an "innovation exemption" provision in securities law to allow crypto companies to experiment with new business models. The WFE letter points out that exemptions could pose risks to market integrity and weaken investor protection. WFE CEO Nandini Sukumar stated, "The SEC should avoid granting exemptions to companies attempting to circumvent regulatory principles that have protected markets for decades." The SEC published the WFE letter on its website but declined to comment. James Auliffe, head of the WFE's technical working group, stated, "We and cryptocurrency platforms should compete on a level playing field, and we should be subject to the same rules." Tether's CEO responded to S&P's ratings: "We are proud of your hatred," acknowledging the flaws in traditional rating models. Tether CEO Paolo Ardoino responded to S&P's rating on the X platform, stating: "We are proud of your 'hatred' for Tether. Those classic rating models designed for traditional financial institutions have historically led countless individuals and institutions to invest in companies that, despite receiving investment-grade ratings, ultimately failed. This has prompted global regulators to question these models themselves, as well as the so-called independence and objective assessment capabilities of all major rating agencies. When a company attempts to challenge the 'gravity' of this broken financial system, the propaganda machine of traditional finance becomes increasingly anxious—no company should dare to decouple from it. Tether, however, has built the first company in the financial industry that is over-capitalized and does not hold any toxic reserve assets. And we still maintain extremely high profitability. Tether itself is a living example that the traditional financial system is so riddled with holes that even those nominal 'emperors' are beginning to fear it." Previously, S&P Global downgraded USDT's stability rating to the lowest level, warning of the risks of Bitcoin exposure. JPMorgan expects the Federal Reserve to cut interest rates in December, overturning its forecast from a week ago. According to Jinshi News, JPMorgan Chase economists have revised their forecasts, now believing the Federal Reserve will begin cutting interest rates in December, reversing the bank's assessment a week earlier that policymakers would postpone rate cuts until January. A research team led by the bank's chief U.S. economist, Michael Feroli, said on Wednesday that statements from several key Fed officials (particularly New York Fed President Williams) supporting recent rate cuts prompted them to reassess the situation. Following the delayed release of the September jobs report last week, JPMorgan Chase had initially predicted that interest rates would remain unchanged in December. Currently, JPMorgan Chase expects the Fed to implement two 25-basis-point rate cuts, one in December and one in January. "We are re-locking our final rate cut timing to January," Feroli wrote in a report to clients. "While the outcome of the next FOMC meeting remains uncertain, we believe the latest round of statements from Fed officials has tipped the scales in favor of a December rate cut." Federal Reserve Beige Book: Economic activity was largely unchanged in recent weeks, but consumer polarization intensified. According to Jinshi News, the Federal Reserve's Beige Book showed that U.S. economic activity remained largely unchanged in recent weeks, with overall consumer spending declining further except for high-end consumers. The Beige Book noted a slight weakening in the U.S. job market and moderate price increases. The Fed stated in the report, "The overall economic outlook remains stable, with some surveyed businesses warning of risks of an economic slowdown in the coming months, while the manufacturing sector expressed cautious optimism." Due to the disruption of key economic data collection caused by the longest government shutdown in U.S. history, which lasted until November 12, field surveys reflecting the actual situation of businesses and consumers have been closely watched in recent months. Fed officials will not be able to obtain complete labor market and inflation data for October and November before the December policy meeting. Nasdaq ISE proposes raising the open interest cap for IBIT options to 1 million contracts. According to the Federal Register and several analysts, Nasdaq ISE has proposed raising the option position cap for BlackRock's Bitcoin spot ETF, IBIT, from 250,000 contracts to 1 million contracts. This cap was previously raised from 25,000 contracts in July 2025. Analysts say the proposal sends three significant signals: Surge in demand: ISE states that demand for IBIT options will continue to grow in 2025, and the current cap is limiting large institutional operations; Bitcoin's rise to "elite" status: The 1 million contract cap only applies to global systemic ETFs such as EEM and FXI, indicating that Bitcoin is being viewed as a core macro asset; Unlocking billions of dollars in hedging capacity: The existing 25,000 contract cap only supports approximately $125 million in hedging positions, far from meeting the needs of sovereign wealth funds or pension funds. If the proposal passes, it will open up over $1 billion in option hedging capabilities for them. Avail officially launched on the Nexus mainnet, creating a unified liquidity execution layer across multiple chains. According to The Block, the modular blockchain platform Avail has launched its cross-chain execution layer, Nexus, on its mainnet, supporting multiple ecosystems including Ethereum, BNB Chain, and Base. Nexus employs an intent-driven architecture and multi-source liquidity aggregation, allowing users to seamlessly transfer assets and execute operations across different chains. Unified verification will be achieved through Avail DA in the future. The platform aims to eliminate the complexity of bridging and chain switching, provide a unified user experience, and improve the usability of Web3 applications. S&P Global downgraded USDT's stability rating to the lowest level, warning of the risks associated with Bitcoin exposure. According to The Block, credit rating agency S&P Global downgraded Tether's USDT stability rating to "5" (the weakest level), citing increased risk asset allocation, insufficient disclosure, and the inability of current reserves to absorb the impact of a sharp drop in Bitcoin prices. USDT is currently backed by approximately 5.6% of its issuance in Bitcoin, exceeding its 3.9% reserve buffer. S&P noted that USDT may face undercollateralization risks if high-risk assets decline simultaneously. As of September 30, Tether's risk assets (including Bitcoin, gold, secured loans, corporate bonds, and other investments with limited disclosure) accounted for 24% of its reserves, up from 17% a year ago. Upexi plans to raise $23 million through a private placement to strengthen its SOL Treasury strategy. According to The Block, Nasdaq-listed Upexi (UPXI) announced a private placement of up to $23 million in shares and warrants to support its core Solana treasury strategy. The offering price is $3.04 per share including warrants, initially raising $10 million, with an additional $13 million if all warrants are exercised. Despite recent market corrections causing its Solana holdings to lose over $200 million in value, Upexi remains committed to a long-term cash holding strategy and will use the proceeds for general operations and further Solana accumulation. Bitwise launched a DOGE spot ETF on the NYSE, ticker symbol "BWOW". According to The Block, Bitwise officially launched the Bitwise Dogecoin ETF (ticker symbol: BWOW) on the New York Stock Exchange today, providing a compliant investment channel for Dogecoin (DOGE) holders. Naver plans to acquire Upbit's parent company, Dunamu, in an all-stock deal for $10.3 billion. According to Bloomberg, South Korean tech giant Naver announced it will acquire Dunamu, the operator of South Korea's largest cryptocurrency exchange Upbit, in a $10.3 billion all-stock transaction through its financial subsidiary Naver Financial. Upon completion of the transaction, Dunamu will become a wholly owned subsidiary of Naver Financial, allowing Naver to accelerate its digital asset strategy and promote the issuance of a Korean won stablecoin. Upbit currently holds over 80% of the South Korean market share. Binance will launch IRYS perpetual contract trading pair According to a Binance announcement, Binance Futures will launch USDⓈ margin-backed IRYSUSDT perpetual contracts at 24:00 (Beijing time) on November 26, supporting leverage up to 20x. USDC Treasury issues $500 million USDC on the Solana blockchain. According to Whale Alert monitoring, at 22:21 and 22:22 (UTC+8), the USDC Treasury issued 250 million USDC on the Solana chain, for a total of $500 million. Vitalik proposed increasing gas costs for inefficient operations to address network expansion. Ethereum co-founder Vitalik Buterin tweeted that he expects Ethereum to continue scaling next year, but the growth will be more targeted. He proposed a possible path to increase the block gas cap by 5 times, while simultaneously raising the gas costs of inefficient operations, such as creating new storage stores (SSTOREs), calling pre-compiled contracts, large contract calls, and complex arithmetic operations, in order to improve network processing efficiency. Grayscale filed an S-3 registration statement with the SEC, proposing to convert the Zcash Trust into an ETF. SEC filings show that Grayscale Zcash Trust (ZEC) has submitted Form S-3, proposing to list on the NYSE Arca and be renamed "Grayscale Zcash Trust ETF" with the ticker symbol "ZCSH". The filing discloses: the custodian is Coinbase Custody, and the prime broker is Coinbase; each basket (10,000 shares) currently requires approximately 817.0998 ZEC; currently, only cash redemptions are supported, but in-kind redemptions may be opened in the future depending on regulatory approval; the trust is a Delaware statutory trust, and its objective is to track the price of ZEC (net of fees and liabilities). Thailand's data regulator has ordered World to delete over 1.2 million iris scans and suspend operations. Thailand's Personal Data Protection Commission has ordered World (formerly Worldcoin), the digital identity project co-founded by Sam Altman, to delete approximately 1.2 million iris scan records and suspend operations in Thailand, ruling that exchanging cryptocurrency for biometric data violates local data laws. Local cryptocurrency platforms Binance, Bitkub, and Orbix have warned users to exercise caution when trading WLD. According to the Bangkok Post, executives at M Vision, the contractor responsible for installations in Thailand, have objected, claiming the deletion would result in losses of approximately $31 million for users. Bolivia plans to incorporate stablecoins into its financial system. According to Solid Intel, Bolivia's Minister of Economy has announced plans to integrate stablecoins into the country's formal financial system. Data: Micropayment transactions on Polygon surpassed 500,000 in November, a 23% increase compared to October. Leon Waidmann, Head of Research at Onchain, tweeted that half of all payment transactions on Polygon are "small" transfers, ranging from $10 to $100. This falls within the range of everyday credit card transactions and merchant payments. In November 2025, small payment transactions ($10-$100) on the Polygon chain surpassed 500,000, a 23% increase from October. This range corresponds precisely to everyday credit card transactions and merchant payments, indicating that Polygon is gradually becoming a core payment channel for crypto cards and PayFi applications. Data sources include major payment service providers such as Coinbase Commerce, Moonpay, Revolut, and Rain. The ChinaAMC Hong Kong Dollar Digital Currency Fund will be listed and traded on the Hong Kong Stock Exchange on November 28. According to an announcement from the Hong Kong Stock Exchange, the ChinaAMC Hong Kong Dollar Digital Currency Fund (stock code: 3471) will be listed and traded on the Hong Kong Stock Exchange on November 28, 2025. A large transaction of over 1000 ETH was detected in Vitalik's wallet address. According to Arkham on-chain data, a large transfer of 1,009 ETH, approximately $2.94 million, just occurred between the vitalik.eth wallet addresses. Subsequently, 1,006 ETH were transferred to an address starting with 0x3C77 (presumably still belonging to Vitalik), and then to the privacy protocol Railgun: WETH Helper (0x402).

Author: PANews

2025/11/27

The next big thing in crypto: on-chain options

The next big thing in crypto: on-chain options

Source: variant.fund Compiled by: Zhou, ChainCatcher If the core value of cryptocurrencies lies in providing new financial pathways, then the lack of widespread adoption of on-chain options is perplexing. In the US stock market alone, daily trading volume for individual stock options is approximately $450 billion, representing about 0.7% of the total market capitalization of the $68 trillion US stock market. In contrast, daily trading volume for cryptocurrency options is approximately $2 billion, representing only 0.06% of the approximately $3 trillion market capitalization of cryptocurrencies (relatively 10 times lower than stocks). Although decentralized exchanges (DEXs) currently handle over 20% of cryptocurrency spot trading volume, almost all options trading is still conducted through centralized exchanges (CEXs) such as Deribit. The difference between traditional options markets and on-chain options markets stems from early design limitations and the lack of infrastructure that enabled them to meet two key elements of a healthy market: protecting liquidity providers from bad order flows and attracting good order flows. The infrastructure needed to address the former is now in place—liquidity providers can finally avoid being devoured by arbitrageurs. The remaining challenge, and the focus of this article, is the latter: how to develop effective market entry strategies (GTMs) to attract high-quality order flows. This article argues that on-chain options protocols can thrive by targeting two distinct sources of high-quality order flows: hedgers and retail investors. The Trials and Tribulations of On-Chain Options Similar to the spot market, the first on-chain options protocol draws on the order book, a market design that dominates traditional finance. In the early days of Ethereum, transaction activity was sparse and gas fees were relatively low. Therefore, order books seemed like a reasonable mechanism for options trading. The earliest example of options order books can be traced back to EtherOpt in March 2016 (EtherDelta, the first popular spot order book on Ethereum, was launched a few months later). However, in reality, on-chain market making is very difficult; gas fees and network latency make it challenging for market makers to provide accurate quotes and avoid losing trades. To address these issues, next-generation options protocols employ Automated Market Makers (AMMs). Instead of relying on individuals to conduct market transactions, AMMs obtain prices from either the internal token balance of liquidity pools or external price oracles. In the former case, the price is updated when traders buy or sell tokens in the liquidity pool (changing the pool's internal balance); the liquidity provider itself does not set the price. In the latter case, the price is updated periodically when a new oracle price is published on-chain. Protocols such as Opyn, Hegic, Dopex, and Ribbon adopted this approach from 2019 to 2021. Unfortunately, AMM-based protocols have not significantly increased the adoption of on-chain options. The reason why AMMs can save gas fees (i.e., prices are set by traders or lagging oracles rather than liquidity providers) is precisely because their characteristics make liquidity providers vulnerable to losses from arbitrageurs (i.e., adverse selection). However, what truly hinders the widespread adoption of options trading is perhaps that all early versions of options agreements (including those based on order books and automated market makers) required short positions to be fully collateralized. In other words, sold call options had to be hedged, and sold put options had to be cash-backed, making these agreements capital inefficient and depriving retail investors of a crucial source of leverage. Without this leverage, retail demand diminishes as the incentive disappears. Sustainable Options Exchanges: Attracting High-Quality Order Flows and Avoiding Low-Quality Order Flows Let's start with the basics. A healthy market needs two things: Liquidity providers' ability to avoid "bad order flows" (i.e., avoiding unnecessary losses). "Bad order flows" refer to arbitrageurs profiting at the expense of liquidity providers, thus gaining virtually risk-free profits. The strong demand stems from the need to provide a "high-quality order flow" (i.e., to make money). A "high-quality order flow" refers to traders who are not price-sensitive and who, after paying the spread, generate profits for the liquidity provider. A review of the history of on-chain option protocols reveals that their past failures stemmed from the failure to meet both of the above conditions: Early options protocols' technological infrastructure limitations prevented liquidity providers from avoiding bad order flows. The traditional method for liquidity providers to avoid bad order flows was to update quotes on the order book for free and frequently, but delays and fees in the order book protocol in 2016 made on-chain quote updates impossible. Migrating to Automated Market Makers (AMMs) also failed to solve this problem because their pricing mechanisms are relatively slow, putting liquidity providers at a disadvantage in competition with arbitrageurs. The requirement for full collateral eliminates the option function (leverage) valued by retail investors, which is a key source of high-quality order flow. Without other on-chain option usage solutions, high-quality order flow is impossible. Therefore, if we want to build an on-chain options protocol by 2025, we must ensure that both of these challenges are resolved. In recent years, numerous changes have demonstrated that we can now build infrastructure that enables liquidity providers to avoid bad order flows. The rise of application-specific (or industry-specific) infrastructure has significantly improved market design for liquidity providers across various financial application areas. Among the most important of these are: speed bumps for delayed order execution; order placement-only prioritization; order cancellation and price oracle updates; extremely low gas fees; and censorship resistance mechanisms in high-frequency trading. With the help of innovation at scale, we can now build applications that meet the requirements of a good order flow. For example, improvements in consensus mechanisms and zero-knowledge proofs have made block space costs low enough to enable sophisticated margin engines to be implemented on-chain without full collateralization. Solving the problem of bad order flow is primarily a technical issue, and in many ways, it's actually "relatively easy." Admittedly, building this infrastructure is technically complex, but that's not the real challenge. Even if the new infrastructure enables the protocol to attract good overflow traffic, it doesn't mean that good order flow will magically appear. Instead, the core question, and the focus of this article, is: assuming we now have the infrastructure to support good order flow, what kind of marketing strategy (GTM) should the project employ to attract this demand? If we can answer this question, we have a chance to build a sustainable on-chain options protocol. Price-insensitive demand characteristics (good order flow) As mentioned above, a good order flow refers to price-insensitive demand. Generally, price-insensitive demand for options mainly consists of two types of core customers: (1) hedgers and (2) retail customers. These two types of customers have different goals, and therefore use options in different ways. hedge funds Hedgers are institutions or businesses that believe risk reduction is valuable enough and are willing to pay a certain amount above market value. Options are attractive to hedgers because they allow them to precisely control downside risk by choosing the exact price level at which losses are stopped (the strike price). This differs from futures, where hedging is either/or; futures protect your position in all circumstances but do not allow you to specify the price at which protection takes effect. Currently, hedgers account for the vast majority of cryptocurrency options demand, and we expect this to come primarily from miners, who are the first "on-chain institutions." This is evident from the dominance of Bitcoin and Ethereum options trading volume, and the fact that mining/validation activity on these chains is more institutionalized than on other chains. Hedging is crucial for miners because their income is denominated in highly volatile crypto assets, while many of their expenses—such as salaries, hardware, hosting, etc.—are denominated in fiat currency. retail Retail investors refer to individual speculators who aim to profit but lack experience—they typically trade based on intuition, belief, or experience rather than models and algorithms. They generally prefer a simple and easy-to-use trading experience, and their driving force is getting rich quickly, rather than rationally considering risks and rewards. As mentioned above, retail investors have historically favored options due to their leverage. The explosive growth of zero-day options (0DTEs) in retail trading exemplifies this—0DTEs are widely regarded as a speculative leveraged trading instrument. In May 2025, 0DTEs accounted for over 61% of S&P 500 index option trading volume, with the majority of that volume coming from retail users (especially on the Robinhood platform). Despite the popularity of options in the financial trading world, retail investor acceptance of cryptocurrency options is virtually zero. This is because there is a better cryptocurrency tool for retail investors to leverage long and short positions, which is currently unavailable in the financial trading world: perpetual contracts. As we've seen in hedging, the biggest advantage of options lies in their level of sophistication. Options traders can consider going long/short, timeframe, and strike price, making options more flexible than spot, perpetual, or futures trading. While more combinations offer greater granularity, which is exactly what hedgers desire, they also require more decision-making, often overwhelming retail investors. In fact, the success of 0DTE options in retail trading can be largely attributed to the fact that 0DTE options improve the user experience of options by eliminating (or significantly simplifying) the time dimension (“zero day”), thus providing a simple and easy-to-use leveraged tool for going long or short. Options are not considered leverage tools in the cryptocurrency space because perpetual contracts are already very popular and are simpler and easier to leverage for long/short positions than 0DTE options. Perpetual contracts eliminate the factors of time and strike price, allowing users to continuously leverage long/short positions. In other words, perpetual contracts achieve the same goal as options (providing leverage for retail investors) with a simpler user experience. Therefore, the added value of options is significantly reduced. However, options and cryptocurrency retail investors are not entirely without hope. Beyond simple long/short operations using leverage, retail investors crave exciting and novel trading experiences. The sophisticated nature of options means they can deliver entirely new trading experiences. One particularly powerful feature is allowing participants to trade directly on volatility itself. Take, for example, the Bitcoin Volatility Index (BVOL) offered by FTX (now closed). BVOL tokenized implied volatility, allowing traders to directly bet on the magnitude of Bitcoin price fluctuations (regardless of direction) without managing complex options positions. It packaged trades that typically require straddles or straddles into a tradable token, making volatility speculation easy and convenient for retail users. Marketing strategies targeting price-insensitive demand (good order flow) Now that we have identified the characteristics of price-insensitive demand, let’s describe the GTM strategies that the protocol can use to attract good order flows to the on-chain options protocol for each characteristic. Hedgers GTM: Meet the miners where they are. We believe the best marketing strategy to capture hedging flows is to target hedgers, such as miners currently trading on centralized exchanges, and offer a product that allows them to own the protocol through tokens while minimizing changes to their existing custody setup. This strategy mirrors Babylon's user acquisition approach. When Babylon launched, a large number of off-chain Bitcoin hedge funds already existed, and miners (some of the largest Bitcoin holders) were likely already able to leverage these funds for liquidity. Babylon primarily built trust through custodians and staking providers (especially in Asia), catering to their existing needs; it didn't require them to try new wallets or key management systems, which often require additional trust assumptions. Miners' adoption of Babylon indicates their emphasis on the autonomy to choose custody options (whether self-custody or choosing another custodian), gaining ownership through token incentives, or both. Otherwise, Babylon's growth would be difficult to explain. Now is an excellent time to leverage this global trading platform (GTM). Coinbase's recent acquisition of Deribit, a leading centralized exchange in the options trading space, poses a risk to foreign miners who may be unwilling to deposit large sums of money in US-controlled entities. Furthermore, the improved viability of BitVM and the overall improvement in the quality of Bitcoin bridges are providing the necessary custodial guarantees for building an attractive on-chain alternative. Retail Marketing Promotion: Providing a Brand New Transaction Experience Instead of trying to compete with criminals using the same tricks they use, we believe the best way to attract retailers is to offer them novel products that simplify the user experience. As mentioned above, one of the most powerful features of options is the ability to directly observe volatility itself without considering price movements. On-chain options protocols can create a vault, allowing retail users to trade long and short positions on volatility through a simple user experience. Traditional options libraries (such as those on Dopex and Ribbon) were vulnerable to arbitrage by arbitrageurs due to their inadequate pricing mechanisms. However, as we mentioned earlier, recent innovations in specific infrastructure applications have provided clear reasons why it's possible to build an options library free from these problems. Options chains or options aggregations can leverage these advantages to improve the execution quality of long/short volatility options libraries while also enhancing order book liquidity and order flow. in conclusion The conditions for the success of on-chain options are finally gradually being met. The infrastructure is becoming increasingly mature, sufficient to support more efficient capital utilization schemes, and on-chain institutions now have a real reason to hedge directly on-chain. By building infrastructure that helps liquidity providers avoid bad order flows and by constructing on-chain options protocols around two price-insensitive user groups—hedging clients seeking precise trades and retail investors seeking entirely new trading experiences—a sustainable market can ultimately be established. With this foundation, options can become a core component of the on-chain financial system in unprecedented ways.

Author: PANews

2025/11/27

Elon Musk’s SpaceX moves 1,163 Bitcoin worth $105M

Elon Musk’s SpaceX moves 1,163 Bitcoin worth $105M

The post Elon Musk’s SpaceX moves 1,163 Bitcoin worth $105M appeared on BitcoinEthereumNews.com. Key Takeaways SpaceX moved 1,163 Bitcoin worth $105M to a new wallet, following a larger transfer last month. The moved funds are believed to be for custody reasons, with SpaceX’s wallet now holding 6,095 BTC. A crypto wallet associated with SpaceX moved 1,163 Bitcoin valued at around $105 million to a new wallet today, according to Arkham Intelligence data. The transfer comes after the Elon Musk-owned space exploration company sent $268 million in Bitcoin to a new address last month. Analysts suggest SpaceX may have moved the funds for custody purposes rather than selling them. The labeled wallet currently holds 6,095 Bitcoin worth almost $553 million. Following a three-year dormancy period, the wallet resumed activity in late July, sending out $153 million worth of Bitcoin. Bitcoin is currently trading near $91,000, up 3.5% over the past 24 hours, according to CoinGecko. Source: https://cryptobriefing.com/spacex-bitcoin-transfer-wallet-november/

Author: BitcoinEthereumNews

2025/11/27

Stunning $105 Million Crypto Movement Shakes Markets

Stunning $105 Million Crypto Movement Shakes Markets

The post Stunning $105 Million Crypto Movement Shakes Markets appeared on BitcoinEthereumNews.com. The cryptocurrency world was electrified today when a SpaceX Bitcoin address transferred a staggering 1,163 BTC worth approximately $105 million to a new wallet. This massive movement, tracked by Onchain Lens, has sent ripples through the crypto community and raised important questions about institutional cryptocurrency strategies. What Does This SpaceX Bitcoin Transfer Mean? The recent SpaceX Bitcoin transaction represents one of the largest institutional crypto movements this month. According to blockchain analysts, the transfer occurred in a single transaction, moving the funds to a completely new address. This type of large-scale movement typically indicates either portfolio rebalancing, security upgrades, or strategic repositioning. SpaceX has been quietly accumulating Bitcoin since 2021, when Elon Musk first revealed the company’s cryptocurrency holdings. However, this particular SpaceX Bitcoin transfer stands out due to its timing and scale. Market observers are closely watching whether this signals a broader trend in corporate cryptocurrency management. Why Are Institutional Bitcoin Moves So Important? When major companies like SpaceX make significant Bitcoin transactions, the entire market pays attention. Here’s why these moves matter: Market confidence indicators – Large transfers can signal institutional sentiment Price impact potential – Movements of this size can affect liquidity Adoption trends – Shows how corporations are integrating crypto into treasury management Regulatory implications – Demonstrates compliance with financial regulations The SpaceX Bitcoin transaction comes at a crucial time when institutional adoption is accelerating. Many corporations are following Tesla’s lead in adding cryptocurrency to their balance sheets, making movements like this SpaceX Bitcoin transfer particularly significant for market analysts. How Do We Know It’s Really SpaceX? Blockchain analytics firms like Onchain Lens use sophisticated tracking methods to identify wallet ownership. While Bitcoin transactions are pseudonymous, several factors help identify the SpaceX Bitcoin address: Previous transaction patterns matching known corporate movements Connection to other verified institutional…

Author: BitcoinEthereumNews

2025/11/27

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