TL;DR

The broader crypto market staged a powerful rally this week as macroeconomic fears subsided, with assets like ETH soaring. In contrast, Typus Perps entered a “cool-down” phase following the prior week’s massive liquidation event, with trading volume declining by over 52% to ~$13.3 million. LPs reaped the benefits of the market upswing, capturing a strong +8.41% return. Traders remained largely on the sidelines, booking a near break-even result, while Open Interest held firm at ~$1.5 million, signaling underlying bullish conviction remains.

Market Rallies, But Trading Activity Cools After Liquidations

This week was a tale of two stories. In the broader market, a significant rally took hold as the previous week’s fears of an economic slowdown were replaced by renewed optimism for looser monetary policy. This risk-on sentiment drove strong gains across the board, with ETH, in particular, showing impressive strength.

However, on the Typus platform, the market was still digesting the aftershocks of last week’s “Great Liquidation.” Trading activity entered a necessary cooling-off period, with total volume decreasing by over 52% to ~$13.3 million. Average daily volume and DAU saw similar declines. This divergence suggests that while long-term sentiment is bullish, short-term speculative traders are exercising more caution.

Strong Market Uplift Delivers +8.41% Return for LPs

It was an excellent week for liquidity providers, who benefited directly from the broad asset price rally. With strong gains in key assets like SUI (+16.89%) and DEEP (+23.30%), the TLP’s underlying basket appreciated by a healthy +8.77%. The TLP token itself delivered a similarly strong return of +8.41%. As expected in a trending market with lower fee generation this week, the TLP’s return was driven primarily by asset appreciation.

A Cautious Week for Traders Results in Break-Even Performance

After the prior week’s historic losses, traders adopted a much more cautious stance. This resulted in a near break-even week, with a very small realized loss of only ~$1.3K. The data suggests that much of the short-term, aggressive trading has subsided for now. However, the unrealized P&L for currently open positions remains at a very healthy +$76.9K, indicating that the long-term positions that survived the previous week’s turmoil are now deeply in profit.

Open Interest Stays Firm, Signaling Underlying Conviction

Despite the significant drop in trading volume, total Open Interest remained remarkably stable, holding firm at around ~$1.5 million. This is a key insight: while short-term traders are on the sidelines, a strong base of long-term position holders remains. The market sentiment is still clearly bullish, with a strong long/short ratio of 5.18 , driven primarily by conviction in SUI and ETH. This signals that while the market is taking a breath, underlying conviction in the uptrend remains high.

Looking ahead, the week represented a healthy consolidation for the Typus ecosystem. The broader market’s bullish recovery provided strong returns for LPs, while the platform’s trading activity cooled down, allowing traders to reset after a period of extreme volatility. The stable and bullishly-positioned Open Interest provides a strong foundation, and the key question is when the short-term traders will return to amplify the market’s next major move.