Current US president Donald Trump introduced a universal 10% tariff on imports and higher specific rates for countries like China and Japan, signaling a major shift in US trade policy.

On Apr 2, 2025, Donald Trump announced aggressive US tariffs, including a universal 10% levy on all imports alongside specific rates of 34% on China, 24% on Japan and 20% on the European Union (EU), while the absence of tariffs on Russia was a notable exception. This policy shift resulted in significant volatility in both traditional and cryptocurrency markets.

The timing of Trump's announcement was widely speculated to be strategic, occurring shortly after US stock markets closed in order to mitigate immediate market reactions. However, the following day, Apr 3, 2025, saw substantial declines: the S&P 500 dropped over 5.1%, and the Nasdaq Composite fell more than 5.6%, reflecting investor anxieties about potential economic disruptions and heightened inflation. 

This marked the fifth-worst trading day of the 2020s, with parallels drawn to the infamous Black Thursday in March 2020. But in stark contrast, Bitcoin displayed remarkable resilience, trading around $81.7K, a mere 6% drop from its local bottom of $77K recorded on Mar 10, 2025. This stability suggests that investors may increasingly be viewing cryptocurrencies as a hedge against geopolitical uncertainties, since Bitcoin’s decentralized nature allows it to operate independently of tariffs and supply chain disruptions that affect traditional assets.

Trump characterized the tariff announcement as the beginning of a "Liberation Day," introducing a two-tier system where the universal 10% tariff would take effect on Apr 5, 2025, while reciprocal tariffs targeting around 60 countries would follow on April 9. This reciprocal approach aims to counterbalance existing tariffs imposed by other nations on American products, pushing countries and regions like China, Japan and the EU to reconsider their trade policies. During his speech, Trump presented a chart illustrating the disparities in tariff rates, using it to justify the administration's stance on the need for these measures to correct long-standing trade imbalances.

The implications for Asian countries are particularly severe, with many facing the highest tariffs, including Cambodia at 49%, Laos at 48% and Madagascar at 47%. Economists who favor proactive trade policies view these tariffs as a negotiation tactic, often referred to as a "game of chicken," whereby the US essentially dares other nations to either accept new, more favorable trade terms or face increased costs for their exports to the US. 

Trump argues that many countries impose heavy taxes on American goods that make them less competitive abroad. He believes that by introducing these tariffs, other nations will be compelled to lower their own export taxes on US products, fostering fairer trade conditions. However, critics warn that this strategy could backfire, potentially igniting a trade war damaging to every country and area involved. They express concerns that retaliatory tariffs from other countries might lead to increased costs for American consumers and economic uncertainty for businesses. 

The success of Trump's tariff policy ultimately hinges on whether other nations choose cooperation over confrontation. Proponents of the strategy argue that countries might fear losing access to the lucrative US market, prompting them to negotiate more favorable terms for American exports. If successful, this could theoretically boost US jobs and profits.

In summary, as the situation evolves, the effects of these tariffs on global trade dynamics and market stability remain to be seen, with potentially far-reaching implications for both traditional and cryptocurrency markets.

Amidst the tumultuous landscape created by the recent tariff announcements, Bitcoin has demonstrated a surprising level of resilience. Despite the significant volatility affecting traditional markets, Bitcoin maintained robust support around $80K, showcasing its ability to withstand external economic pressures. This stability is particularly noteworthy when compared to mainstream public equities, which experienced substantial declines in response to the tariffs.

The magnitude of Bitcoin's price drawdown was considerably less severe than that of many established stocks, highlighting its unique position in the financial ecosystem. While indices such as the S&P 500 and Nasdaq Composite plummeted over 5%, Bitcoin's relatively mild decline suggests that investors may increasingly view it as a safe haven and alternative asset during times of economic uncertainty.

This resilience can be attributed to several factors. First, Bitcoin's decentralized nature allows it to operate independently of traditional market dynamics and geopolitical influences, making it less susceptible to the same shocks that impact equities tied to physical goods and international trade. Additionally, the growing acceptance of cryptocurrencies as a legitimate asset class has bolstered investor confidence, leading to a more stable demand for Bitcoin, even in volatile environments. In particular, Strategy’s (formerly MicroStrategy) continued accumulation of Bitcoin and BlackRock’s launch of ETP products in Europe continues to cement Bitcoin’s unique position in equity portfolio allocation.

Furthermore, the current market sentiment indicates a shift in the way that investors perceive Bitcoin, particularly as an effective hedge against inflation and geopolitical risks. As traditional markets grapple with the ramifications of aggressive tariff policies, Bitcoin's ability to hold steady at the $80K level may attract more institutional interest, reinforcing its position as a viable alternative investment.

In conclusion, Bitcoin's resilience within the tariff-induced volatility not only highlights its potential as a digital asset, but also suggests a broader acceptance among investors seeking diversification and stability in uncertain economic times. This comparative strength against mainstream equities could signal a pivotal moment in the evolution of cryptocurrency as a mainstream financial instrument. 

Advanced

Intro to Santiment.png

Bybit x Santiment: Tariffs-led whipsaw solidifies Bitcoin’s resilience

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

As markets near US president Trump's "Liberation Day" for tariffs, crypto remains volatile. BTC has dropped from a local high of $88K to $82K amid signs that tariffs will affect many countries. Implied volatility has spiked and then eased. Other derivatives market metrics show that BTC and ETH volatility smile skews remain significantly skewed toward puts, a level last seen in March 2023.

Please check out the report’s highlights.

BTC options show signs last seen in March 2023

As crypto prices remain highly correlated with macro-sensitive assets, the week began with a surge in short-tenor implied volatility for BTC and ETH. The sell-off continued as President Trump announced tariffs affecting about 90 countries. BTC's front-end volatility quickly fell below longer maturities, and short-dated volatility smiles briefly favored OTM puts, reminiscent of levels seen during the March 2023 US banking crisis. 

SOL options remain the least traded among major cryptocurrencies (i.e., BTC and ETH), but there was a significant rise in call options this week, dominating both volume and open interest. Following the Mar 28, 2025 expirations, many contracts weren’t reopened, with the notional size of call contracts decreasing from over $3.2M to around $2.5M. However, there has been a slight increase in the notional size of open put options, as traders respond to a continued decline from the January all-time high of $250.

block-scholes-x-bybit-report.jpeg

Bybit X Block Scholes crypto derivatives analytics report (Apr 2, 2025): BTC option skews show a bearish sign last seen in 2023

Fidelity recently announced that it would be launching its own stablecoin, to be pegged to the US dollar. Learn more here.

After first making headlines upon filing paperwork for its very own money market fund, Fidelity seems to be taking the next step toward this grand goal by issuing its own 

 pegged to the US dollar could be the start of a multi-stage scheme to help crypto achieve mainstream adoption.

If you're new to fund-issued stablecoins, or perhaps a crypto beginner whose attention has been piqued, you might be wondering how Fidelity’s stablecoin could impact the crypto market. From highlighting how the Fidelity stablecoin differs from its other fiat-backed counterparts (e.g., 

) to elaborating on the possible motives for launching it, here's everything you need to know about the proposed Fidelity stablecoin.

Founded in 1946, Fidelity Investments has built a reputation as a leader in financial services. To date, it's managed trillions of dollars in assets for individuals and institutions alike. 

Known for its innovative approach to investing, Fidelity has consistently stayed ahead of the curve by embracing new technologies and trends. From mutual funds to retirement accounts, it's fair to say that Fidelity is a trusted name in finance, and has successfully established its presence, thanks to its storied legacy in financial services.

Fidelity’s foray into crypto isn’t new. With the demand for digital asset services growing larger over time, the company has quietly been building its presence in the crypto space through 

 since 2018, with dedicated service that provides custody and trading services for institutional and individual investors.

By launching its own stablecoin, Fidelity is taking this commitment toward 

 innovation to the next level, signaling its belief in the long-term growth potential of digital assets.

Like many of its popular stablecoin counterparts, Fidelity’s stablecoin is pegged to the US dollar. This ensures price stability, a critical feature for traders looking to mitigate risk amid 

. Built on blockchain technology, this stablecoin is ostensibly designed to integrate seamlessly with Fidelity’s broader ecosystem of tokenized financial products. This means users can expect a secure, efficient and transparent digital asset that aligns with Fidelity’s high standards.

 like Tether’s USDT and Circle’s USDC dominate the market, Fidelity’s offering brings something unique to the table: trust. As a regulated financial institution with decades of experience, Fidelity offers a level of credibility that few other stablecoin issuers can match. Furthermore, its focus on regulatory compliance positions it as a safer alternative for both retail and institutional investors.

Fidelity’s stablecoin represents a deliberate effort to integrate its institutional expertise with blockchain’s efficiencies. By creating a dollar-pegged digital asset, the firm aims to serve as a trusted intermediary for clients navigating both traditional and crypto markets. Moreover, the Fidelity Digital Assets division has already laid the groundwork through Bitcoin custody services and 

. The proposed stablecoin extends this infrastructure, allowing institutional investors to transition seamlessly between volatile cryptocurrencies and stable-value instruments without exiting Fidelity’s ecosystem.

The stablecoin market has grown exponentially, surpassing $200 billion in 2025. This surge is largely being driven by demand for volatility hedging and cross-border payment efficiency. Fidelity recognizes that traders and institutions increasingly require reliable on-ramps between fiat and crypto. Its stablecoin offers a compliant alternative to incumbents, such as Tether and Circle, who face lingering skepticism about reserve transparency. By entering this space, Fidelity would not only meet immediate demand, but position itself as a leader in institutional-grade digital assets, thus appealing to risk-averse entities.

The US regulatory landscape under the current administration has shifted decisively toward crypto-friendly policies, and the Stablecoin Innovation Act and the GENIUS Act are advancing through Congress, aiming to establish clear rules for reserve backing and 

 compliance. Designed with Treasury reserves and audit transparency, Fidelity’s stablecoin aligns with these impending standards. By proactively adopting regulatory best practices, Fidelity avoids the scrutiny faced by Tether — and positions its stablecoin as a “gold standard” for institutional adoption.

Stablecoins generate revenue through interest earned on reserve assets. For example, Tether reported over $6 billion in net income in 2024 from its treasury holdings. Fidelity already manages $80 billion in its Treasury Digital Fund, and can potentially monetize its stablecoin reserves while offering competitive yields to clients. This creates a dual revenue stream, consisting of fees from asset management and interest from stablecoin reserves.

The stablecoin market remains dominated by Tether and Circle, but their retail-focused models leave room for institutional alternatives. Fidelity’s brand reputation, combined with its existing relationships with hedge funds and pension plans, gives it a unique edge. For example, its stablecoin could integrate directly with retirement accounts, allowing 401k participants to allocate to crypto without custody risks. This differentiation is critical as rivals like BlackRock and Franklin Templeton expand their tokenized offerings.

While details are still scarce, the following are some likely use cases for the Fidelity stablecoin.

Using Fidelity’s stablecoin for staking

One of the most exciting use cases for Fidelity’s stablecoin is staking. For traders and investors, staking offers an opportunity to 

 by locking up their assets in support of blockchain networks. With Fidelity’s stablecoin, users could stake their holdings with confidence, knowing they’re backed by one of the most trusted names in finance.

Enhancing market liquidity and capital efficiency

Fidelity’s stablecoin is also expected to enhance liquidity across trading platforms. By providing a reliable medium of exchange that 

 fiat currency and digital assets, this stablecoin could streamline trading operations and reduce transaction costs, creating a win-win for traders and exchanges.

Facilitating real-world asset (RWA) tokenization

Fidelity's stablecoin is strategically positioned to drive the tokenization of RWAs by democratizing access through fractional ownership of commodities and real estate, thus streamlining the trading and settlement of tokenized securities as a stable exchange medium. This could ultimately foster a more efficient and transparent payment ecosystem for tokenized goods and services.

How will this impact the current crypto landscape?

Legitimization and mainstream adoption of crypto

Fidelity's established reputation within traditional finance lends significant credibility to the crypto space. This legitimacy can alleviate concerns among mainstream investors who have been hesitant, due to perceived risks or a lack of understanding. By offering a regulated stablecoin, Fidelity signals that digital assets are becoming a legitimate part of the broader financial landscape, encouraging greater participation from institutional and retail investors alike. This increased confidence can lead to wider adoption of crypto-related products and services, integrating them into everyday financial transactions.

Market stabilization and increased liquidity

The substantial capital that Fidelity brings to the market can significantly increase liquidity, reducing price volatility and making crypto assets more attractive to traditional investors. Increased liquidity facilitates smoother trading and reduces the risk of significant price swings, creating a more stable and predictable market environment.

Fidelity's involvement encourages dialogue between regulators and established financial institutions, leading to clearer and more comprehensive regulatory frameworks for stablecoins and other digital assets. By leveraging its existing compliance and risk management expertise, Fidelity can contribute to the development of robust security standards and best practices for the crypto industry. This increased regulatory clarity and security can reduce the risk of fraud and market manipulation, fostering greater trust and confidence among investors.

he introduction of a regulated stablecoin from a trusted institution can accelerate the integration of traditional financial products and services into the 

 (DeFi) space. Such integration can lead to the development of innovative financial instruments, such as tokenized securities and decentralized lending platforms, bridging the gap between TradFi and DeFi while allowing for far greater capital efficiency within the DeFi space.

Driving crypto infrastructure standardization

Fidelity's participation can drive the development of standardized infrastructure and interoperability protocols, facilitating seamless transactions across different blockchain networks and traditional financial systems. This standardization could improve the efficiency and scalability of the crypto market, thereby enabling greater adoption and integration with existing financial infrastructure.

What are the challenges that Fidelity may face?

While Fidelity's late entry into the stablecoin market is promising, due to its institutional credibility and regulatory focus, it does face substantial challenges. At the top of the list of Fidelity’s potential challenges: competing with established stablecoin giants like USDT and USDC will require Fidelity to demonstrate superior transparency, security and seamless integration of the Fidelity stablecoin within existing ecosystems. 

Building trust with a potentially hesitant crypto native demographic and overcoming established network effects will also require strategic partnerships, competitive incentives and a flawless track record in maintaining a stable peg to the US dollar.

The regulatory environment surrounding stablecoins is rapidly evolving. Recent developments such as the 

 (GENIUS) Act signal a more favorable stance toward crypto in the United States. For companies like Fidelity, this creates an opportunity to innovate within clear regulatory frameworks while addressing concerns around transparency and accountability. However, this evolving legislative landscape doesn't mean that Fidelity is out of the woods yet. This is especially so because regulations aren’t uniform across all jurisdictions. Therefore, Fidelity will need to demonstrate regulatory agility and adaptability to navigate these varying requirements.

Lastly, while there’s speculation that the Fidelity stablecoin could play a huge part in the company’s tokenized money market fund offering, there’s currently nothing set in stone. This is due to the inherent complexities of integrating a newly launched stablecoin into existing financial products, as well as the need to navigate potential regulatory hurdles related to that integration. Since Fidelity Digital Assets and 

 are two separate entities, there will likely be some coordination needed before Fidelity can incorporate its stablecoin into its onchain bond market.

Fidelity’s launch of its own stablecoin marks an important milestone in the evolution of digital finance. By combining stability with trust and regulatory compliance, this new offering has the potential to reshape the way traders interact with crypto. For beginners looking for a safe entry point into crypto, as well as experienced traders seeking reliable tools for staking and liquidity management, Fidelity’s stablecoin offers an enticing proposition. 

Likewise, for institutional traders, the proposed stablecoin provides a compliant and secure bridge between traditional finance and DeFi, unlocking new avenues for managing assets and diversifying portfolios. While challenges remain, Fidelity’s entry is poised to accelerate the integration of digital assets into mainstream finance, ultimately paving the way for wider adoption and innovation.

Intermediate

fidelity stablecoin.png

Fidelity’s new stablecoin: A bold step into crypto stability

Learn how Amnis Finance (AMI) transforms APT staking with liquid staking solutions. Earn rewards, maintain liquidity, and explore DeFi opportunities seamlessly.

 (DeFi) enthusiasts passionate about exploring the endless opportunities in the crypto market.

, through which your assets are locked for a fixed period and can’t be used for other purposes, liquid staking solutions offer the flexibility to channel your staked assets to yield-generating ventures while preserving liquidity. 

One such platform is Amnis Finance, a pioneering liquid staking protocol on the 

 that provides investors with yield-bearing tokens to leverage DeFi opportunities.

 is a liquid staking platform on the Aptos blockchain whose users can stake their APT tokens and earn rewards through DeFi activities, such as 

Offering a staking APR of 8.02%, Amnis is exclusive to Aptos, a 

 with superior technology known as Move, designed for scalability, security and low-cost transactions.

Through Amnis, those who hold APT (the native token for the Aptos network) can stake their tokens and receive tokens of equivalent value, which they can now use for trading and investing opportunities without unstaking their locked tokens.

Furthermore, Amnis has created new financial instruments that are attractive to institutional investors. These instruments use a yield tokenization concept that splits tokens into yield-bearing and principal tokens.

At the heart of Amnis Finance’s operations is an innovative staking structure designed to provide the involved parties with efficient and flexible investing. Amnis system is powered by smart contracts that enable APT token holders to effortlessly maximize returns without having to lock their capital or run a validator’s node.

The basic architecture of Amnis is composed of the following components:

, it issues amAPT. The user can then use these tokens to participate in the Aptos DeFi ecosystem, or stake them on Amnis to receive stAPT tokens and generate rewards.

, maintaining a 1:1 peg with APT. Users who stake their APT tokens through Amnis Finance receive an equivalent amount of amAPT, which can be utilized across various DeFi platforms without forfeiting staking rewards. This design ensures that users retain flexibility and can engage in activities such as lending, borrowing and liquidity provision, while their assets continue to generate staking yields.

 that allows investors to instantly withdraw their amAPT tokens. This convenient withdrawal feature helps them bypass the 14-day waiting period common with traditional staking.

Amnis Finance has established a reserve mechanism to ensure price stabilization in case of market surges. When necessary, the platform may buy back amAPT, and the profits are transferred to the Amnis treasury.

For users seeking to maximize their staking returns, stAPT offers an auto-compounding yield-bearing option. By depositing amAPT into the stAPT vault, users receive stAPT tokens that represent their share in the staking pool.

As staking rewards accumulate, the value of stAPT increases proportionately, eliminating the need for manual restaking and providing a seamless way to enhance staking yields over time.

Beyond its dual-token model, Amnis Finance introduces an innovative approach to yield optimization through yield tokenization. This process involves 

 yield-bearing assets (such as stAPT) into standardized yield tokens (SY), which are then divided into principal tokens (PT) and yield tokens (YT).

The PT token represents the original value of the staked asset, and can be redeemed at a 1:1 ratio upon maturity, while YT signifies the portion of interest generated over time. This segmentation allows users to tailor their investment strategies by separately managing principal and yield components, offering greater control and flexibility in crafting financial outcomes.

 for the Amnis Finance ecosystem. It’s designed to ensure a balanced ecosystem on the network. AMI token holders can propose changes and vote on key matters regarding the operation of Amnis Finance. AMI is also used as an incentive to promote the adoption of the Amnis Finance liquid staking ecosystem.

Amnis Finance has a total supply of 1 billion AMI tokens, allocated as follows:

Furthermore, Amnis Finance has a token emission schedule (spread over 48 months) that’s designed to facilitate decentralization, ensure balanced distribution and incentivize participants. The vesting schedule is shown below:

 to reward its early adopters and active contributors to its ecosystem. The details of the AMI airdrop are as follows.

30 million AMI tokens were set aside for the Amnis Retroactive Airdrop, in which 10,000 users received rewards for their participation (based on their rankings). The snapshot for those who qualify for this airdrop ran from Nov 7, 2023, to Mar 25, 2025.

Eligibility was determined based on accumulated retroactive points earned through various activities, such as minting APT to amAPT on Amnis, providing amAPT/APT liquidity on platforms like Liquidswap and PancakeSwap, and depositing stAPT with Aries Markets.

In addition to the Retroactive Airdrop, Amnis Finance has allocated 5 million AMI for holders of Draconian NFTs, with each NFT granting its holder 1,500 AMI tokens.

Furthermore, to commemorate its token generation event (TGE) and honor community support, Amnis Finance launched an Exclusive TGE NFT Airdrop campaign. This initiative allows participants to earn rare NFTs and claim a share of a 1 million AMI reward pool. The claiming period for Exclusive TGE NFT holders began on Apr 2, 2025, and will remain open for 12 months.

 on Bybit’s Spot trading platform. To celebrate this listing, Bybit is holding two Token Splash events in which a total of 

Amnis Finance is revolutionizing the Aptos ecosystem by unlocking the full potential of the APT token through liquid staking. By converting APT into amAPT, users can earn staking rewards while they maintain liquidity and access to DeFi opportunities.

With added benefits like a Retroactive Airdrop and NFT-based rewards, Amnis incentivizes active participation and long-term engagement. As the platform continues to grow, it’s empowering users to put their APT to work more efficiently, increasing both flexibility and yield.

Whether you're a DeFi enthusiast or a long-term holder, Amnis Finance is a powerful tool for maximizing your Aptos staking potential.

amnis finance.png

Amnis Finance (AMI): Maximizing APT potential with a liquid staking protocol

Bybit Learn

Crypto

Trading

Ethereum’s Dencun Upgrade is the next major update to the network that core developers have chosen to work on. Learn more about it in this article.

Skinny_Banner-1600x400.webp

Even after countless upgrades to the Ethereum blockchain, we’re only 

 in 2022, Ethereum’s post-Merge upgrade schedule is likely to follow its original road map, which 

, which allowed Ether stakers to finally withdraw their deposited ETH, we’re seeing Ethereum’s core developers resume their post-Merge road map now that the way forward has been paved.

Known as the “Dencun” Upgrade (a portmanteau of “Deneb” and “Cancun”), the Ethereum blockchain’s upcoming upgrade aims to improve the network’s overall scalability and security. In total, the upgrade comprises five Ethereum Improvement Proposals (

) that will supposedly increase data storage and lower costs. 

Curious as to how the team will set out to accomplish this? From 

, here’s all you need to know about the Ethereum Dencun Upgrade and how it might impact ETH prices once it’s fully implemented this year.

Ethereum’s Dencun Upgrade is the next major step forward for the network that core developers have chosen to work on. Labeled the “Surge” portion of the 

’s road map, Dencun aims to improve the blockchain’s maximum number of transactions per second (

) without sacrificing concerns like security and ease of development for Layer 2 decentralized applications (

It's important to note that the Ethereum Dencun Upgrade isn’t merely a software update, but rather a significant milestone for Ethereum. In a nutshell, Dencun aims to improve the network's 

 and security, and to lower transaction fees — which could attract more users to the network. According to 

 of the Ethereum Foundation, October 2023 was a feasible goal for Dencun's activation. However, the upgrade was later 

, a possibility that had been discussed by core developers. The launch for the Ethereum Dencun Upgrade will likely be in the first quarter of 2024, and will include the following EIPs:

If you would like to check the progress of the update, you can do so 

Proto-Danksharding & Blob Carrying Transactions

As a new transaction format that’s introduced by 

, a binary large object (BLOB) refers to large data packets integrated into Ethereum’s network to boost overall transaction throughput. These “blobs” consist of additional information temporarily stored on the Ethereum consensus layer, which facilitates a more cost-effective and affordable solution for reducing overall gas fees.

Blob-carrying transactions essentially allow a transaction sender to attach a large chunk of data, akin to how large files are attached to emails prior to sending them. This ultimately frees up more space for transaction data on 

 protocols, which will make transactions more affordable in the long run as it reduces the fees for posting data to Ethereum.

What Is the Deneb Upgrade, and How Does It Differ From the Cancun Upgrade?

If you’re just getting started within the Ethereum ecosystem, you may be curious about the term "Cancun" being thrown around by some crypto enthusiasts. Essentially, this is a reference to the upcoming Ethereum network upgrade, which will involve updates to both the 

. The Cancun Upgrade specifically pertains to the update of the Ethereum execution layer, while the Deneb Upgrade focuses on the network’s consensus layer. 

These upgrades will be taking place simultaneously, so there's no need to worry about any potential delays in the execution of either one. It's worth noting that both updates are being implemented to improve the overall efficiency and security of the Ethereum network, which is exciting news for anyone involved in the Ethereum ecosystem. Whether you're a seasoned user or just starting out, this upgrade is definitely something to watch for.

 will be implemented primarily to provide data availability support for the highly awaited EIP-4844, known as Proto-Danksharding. That aside, Deneb will also include the following EIPs:

Why Is Everyone Talking About the Ethereum Dencun Upgrade?

Like The Merge, the Ethereum Dencun Upgrade represents yet another step in the right direction for the Ethereum Foundation and its core developers as they strive to complete the 

 portion of their road map. The execution of Dencun for the Ethereum blockchain marks the first significant step toward overall project progress, since Proto-Danksharding is a key EIP that must be executed to enhance transaction throughput. 

This has once again sparked interest in the long-term value of investing in Ethereum. It continues to become the most widely adopted smart contract platform to deliver on fulfilling the promises of its road map. With Dencun being imminent, interest is peaking in the potential upcoming volatility to come from the execution of this major network upgrade.

The Ethereum Dencun Upgrade has already gone live on the Goerli and Holesky testnets and the Sepolia testnet faucet, and users are anticipating its mainnet launch.

What Does the Ethereum Dencun Upgrade Aim to Achieve?

From scalability to better security, here are some of the most talked-about improvements to come with the Ethereum Dencun Upgrade.

The temporary storage and retrieval of off-chain data via Ethereum nodes will resolve the key issue of scalability for the Ethereum blockchain. Proto-Danksharding will significantly increase transaction throughput, which can improve the overall user experience as transactions are processed at a greater rate without fear of congestion or being bogged down by traffic demands. 

The introduction of Proto-Danksharding and related EIPs is expected to address the issue of high gas fees on the Ethereum network. By optimizing transaction processing and reducing the burden on network resources, the upgrade may lead to transaction costs as low as a fraction of a cent. This remarkable fee reduction would be particularly beneficial for investors who frequently engage with the Ethereum ecosystem and its related DApps. From 

, this could lead to even greater adoption of the Ethereum network in the future.

The Dencun Upgrade also incorporates various improvements and bug fixes, enhancing the overall security and stability of the Ethereum network. For ETH investors, this will mean a more robust ecosystem with reduced vulnerability to potential attacks or network disruptions. By satisfying a critical area of the 

, crypto enthusiasts and newcomers who invest based on a network’s security and stability may have more confidence in investing in ETH for the long haul.

The Impact of the Ethereum Dencun Upgrade on ETH Prices

Taking into account the Ethereum Foundation’s solid track record of executing network upgrades, the Ethereum Dencun Upgrade sounds like nothing but good news for 

 and long-term investors. This is because implementing the numerous EIPs will help strengthen Ethereum’s core fundamentals and facilitate mass adoption once interest builds again in crypto during a bull run.

Conversely, this might also be a case of “buy the rumor, sell the news,” whereby ETH traders and speculators may decide to sell off their ETH holdings or short-sell ETH once the Dencun Upgrade is completed. This is intended to take advantage of retail investors and traders buying up ETH on the basis of 

Keen to learn how you can profit from the near-term volatility caused by the Ethereum Dencun Upgrade? Read on as we cover our 

 takes on how ETH prices might move post-Dencun update.

Ways to Profit from the Ethereum Dencun Upgrade

Here are our thoughts on how to trade ETH in the event of pronounced Ether price volatility. All of our outlooks will be based on the ETH chart displayed below, and represent possible scenarios in which ETH prices could fluctuate.

Understanding how to identify strong support levels for purchasing during dips can significantly enhance your trading success. 

As we analyze the price chart, it's clear that Ethereum has experienced significant volatility with a pattern of peaks and valleys. Notably, there seems to be a consolidation phase above the $2,200 level, which might be interpreted as a support zone. This area could be significant for traders who follow the strategy of 

, hypothesizing that the price is more likely to rebound from these levels.

With the Ethereum Dencun Upgrade approaching, market participants may be closely watching the $2,200 level. Upgrades like Dencun often bring heightened attention, and can influence investor sentiment. If the upgrade is expected to have a positive impact on Ethereum's network efficiency and overall value, we might observe its price stabilizing or increasing as the event draws closer.

Ether could potentially hover around this price range, as investors may view the upgrade as a catalyst for future value appreciation. It's common for prices to consolidate before such events as investors take a “wait-and-see” approach. This period of consolidation may represent a form of equilibrium in which the market is balancing optimism about the upgrade's potential benefits against the inherent risks and uncertainties.

FOMO is a powerful driving factor in the crypto space — and this could certainly be the case with the essential Dencun network upgrade. Thanks to FOMO, traders might jump on the ETH bandwagon if the upgrade proceeds without a hitch. To take advantage of this FOMO-induced ETH rally, it might make sense to build a trading plan around a stop market leveraged long order and buy the 

 would want to see ETH prices retest the bottom of the ascending channel at around $2,200. If ETH can break through this price barrier, we might see its price surge toward the $2,700 to $2,800 range.

While the long-term prospects of the upcoming Ethereum Dencun Upgrade might sound bullish on a fundamental level, there are still a host of other factors that could cause ETH prices to decline in the short term. Some of these negative catalysts include:

Any negative crypto news might cause a breakthrough of Ether’s existing area of support and result in ETH prices heading toward $2,000. If you have a bearish outlook on Ethereum and ETH prices, it would be ideal to build a trading plan around a stop market leveraged short order by buying the leveraged Perpetual token pair 

If you're interested in trading Ethereum and making a profit off of the Ethereum Dencun Upgrade, then you might want to read our guide on how to get started with trading ETH. 

. From there, you can locate ETH3L pairs if you're bullish, or ETH3S pairs if you're bearish. 

Once you're in the trading interface, it's important to change your order type to 

. This type of market order can help you maximize short-term gains while limiting your maximum loss, thanks to the 

 in place. (For trading beginners, the stop-loss feature keeps your losses fixed, according to your risk tolerance, so you can trade with greater confidence.)

Before inputting your price levels, it's crucial to check for 

, which can be useful when placing your price levels. However, keep in mind that the strength of these levels can vary based on your personal risk appetite.

Assuming you’ve funded your account, you can proceed to input the fields present in your ETH3L or ETH3S leveraged token stop market order. Once you’ve inputted all the necessary information, submit the order to place your trades. With these tips in mind, you should be able to get started with trading ETH on Bybit and potentially profit from the Ethereum Dencun Upgrade.

: Calculated as (Entry − Exit before rebalancing)

: Calculated as (Exit − Entry + Volatility Decay + Fees)

Keen on reading more about strategies for trading with Spot and Derivative products on Bybit? Check out our guide on 

Other Ways to Profit from the Ethereum Dencun Upgrade With Bybit

Exploring other ways to profit from the Ethereum Dencun Upgrade? Look no further! Bybit is running a total of 

 for you, with a total prize pool of 415,000 USDT to maximize your gains.

In preparation for the Dencun Upgrade originally planned for October 2023, Bybit hosted two events. If you didn't get a chance to participate in these events, continue reading to discover the upcoming Ethereum Dencun Upgrade events we have lined up!

Learn to Earn From the 5,000 USDT Prize Pool

The first event took place two weeks before the initially-planned Dencun Upgrade, as users could show off their knowledge of the upgrade to earn a share of the 5,000 USDT prize pool!

Take part in the Learn to Earn campaign’s quiz, and get all the answers correct to be eligible for rewards. The first 600 new users to get all answers correct received 5 USDT each, while the first 500 existing users to get all the answers correct, received 4 USDT.

The second event is known as the Cancun Supreme Scorer 2023. It took place from Sep 25, 2023, 10AM UTC through Oct 13, 2023, 10AM UTC.

To take part in this event, users were required to follow the rules below:

If they wanted to boost their points, they could do so as follows:

The grand prize pool stands at 80,000 USDT, split as follows:

The Point Ranking Prize Pool is broken down as follows:

The Prediction Ranking Prize Pool is broken down as follows:

Stay tuned for the following six events, which will provide you with even more opportunities to earn with Bybit! Check out 

Deposit and Earn from the 30,000 USDT Prize Pool — New Users Exclusive

The Deposit and Earn event is being held exclusively for new users. To participate, simply complete the following steps:

Once you’ve completed the above steps, you’ll receive 20 USDT. Please 

 that rewards will be distributed on a first-come, first-served basis.

Trade to Earn From the 60,000 USDT Prize Pool

Ethereum Dencun Upgrade: The Impact on ETH Prices

Grab Up to 5,000 USDT in Rewards

Grab Up to 5,000 USDT in Rewards