TL;DR

🚀 June Highlights:

• Paradex: Achieved $3.5B in trading volume, with the launch of cross-chain bridging through integrations with Layerswap and RhinoFi.
• Paradigm: Captured 25% of the global options market share with a total volume of $15B.

Q3 Kickoff

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July was a month marked by significant milestones that we're excited to share with you. Paradigm continues to dominate the market, capturing an impressive 25% of the global option share and reaching a remarkable $15B in total volume. On the Paradex front, we recorded $3.5B in trading volume, further solidifying its crucial role within our ecosystem.

We're also proud to announce that cross-chain bridging is now live on Paradex, thanks to integrations with Layerswap and RhinoFi. This new feature allows users to seamlessly move tokens across different blockchains, enhancing liquidity and offering greater flexibility within our platform.

With these key achievements in mind, let's dive into the details of July's developments.

Paradex Key Performance Metrics

In the past month, Paradex recorded a Monthly ADV of $115M, with a Monthly Total Volume of $3.5B. Total fees paid amounted to $869K, while we maintained 378 active users. The Total Open Interest reached $28.9M, contributing to a Monthly TVL of $18M. Additionally, traders earned a total of 4.4M points.

Cross-Chain Bridging Live on Paradex

This July, we proudly launched our first cross chain bridging integration with Layerswap and RhinoFi. This will allow users to move tokens from one blockchain to another, facilitating the flow of value and liquidity across disparate ecosystems. With these partnerships, we're taking a significant step forward in enhancing our ecosystem and offering more flexibility to our users.

Summer Flush

Sentiment then did a U-turn as fears subsided and political events seized the limelight. First the Republican Party Platform for the 2024 election was released, vowing to “end Democrats’ unlawful and unAmerican Crypto crackdown” and defending the right to mine bitcoin, self-custody and transact freely. Sentiment was bolstered by the announcement of Ohio Senator JD Vance as the VP on the Republican ticket. Spot reclaimed 65k and vols rebound as the positive Spot/Vol correlation was reinstated. As the market grew euphoric, flows began to trend towards the bullish Q4’24 and Q4’25. Following the spot move, call skew for the 30-day to 180-day tenors widened, skew showed a spread about 8 to 10 vol handles. These later tenors saw increased activity, highlighted by the Dec 24 and Mar 25 100k calls prints.

The last week of July saw an interesting development, with 2 Aug vol bid beyond 70v as market participants traded Trump’s speech at the Bitcoin Conference in Nashville.

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Top 10 BTC Strucures on Paradigm:‍

1. 1350x BUY 12 Jul 24 58000 Put 
2. 1165x SELL 27 Dec 24 100000 Call 
3. 1025x SELL 26 Jul 24 67000 Call 
4. 1000x BUY 2 Aug 24 70000 Call 
5. 1000x BUY 27 Dec 24 100000 Call
6. 900x SELL 27 Dec 24 100000 Call
7. 875x BUY 2 Aug 24 50000 Put 
8. 800x SELL 27 Dec 24 110000 Call 
9. 800x BUY 2 Aug 24 74000 Call 
10. 725x SELL 30 Aug 24 70000 / 27 Dec 24 95000 CCal

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ETH option volumes were muted in July. On July 23rd nine spot ETH ETFs began trading, eight new products and the converted Grayscale Trust (ETHE). $1.2 billion in inflows into the new products were overwhelmed by $1.7 billion in outflows from ETHE. 

Eth’s options flows were circled around front-month call buyers and sellers. As discussed in earlier newsletters, the price action upon Bitcoin’s ETF release was not immediately positive and there buyers of the backend 2024 and early 2025 emerging as price is euphoric. Other notable flows are Sept and Dec upside buyers via outrights and call spreads. 60d ATM IVs opened July at 66v and closed the month at 58v. Notable Sep 3200 straddle purchased at the end of July with ~70k of vega traded.

‍Top 10 ETH Structures on Paradigm:

1. 10000x BUY 30 Aug 24 3200 Call 
2. 8250x BUY 27 Sep 24 4000 Call 
3. 7750x SELL 30 Aug 24 3600 Call 
4. 7375x BUY 27 Sep 24 3200 Straddle 
5. 7375x SELL 2 Aug 24 3700 / 30 Aug 24 4000 CCal 
6. 5000x BUY 27 Dec 24 3200/4200 CSpd 
7. 4900x SELL 27 Dec 24 3500 Call 
8. 4500x BUY 27 Sep 24 3000/3900 CSpd 
9. 4285x BUY 27 Dec 24 4000 Call 
10. 4250x SELL 2 Aug 24 3450 Call

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Stay informed and engaged with us through "Paradigm Edge" and "Paradex" Telegram channels — your go-to resources for navigating this ever-changing crypto derivatives landscape.

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Sincerely,
The Paradigm Team 💜