TL;DR

The market endured a roller coaster week driven by conflicting US inflation data, causing Bitcoin to rally to new highs before a sharp reversal. On Typus, trading volume cooled by 22% to ~$10.4M as the market consolidated. For the third straight week, traders proved adept at navigating the chop, booking +$22.8K in profits. As a result, LPs saw a -2.71% return, a direct reflection of paying out trader winnings. The key story, however, was a surge in conviction, with Open Interest recovering sharply to ~$2.1M, approaching its prior all-time high and signaling a highly leveraged market.

Macro Data Drives Market Roller Coaster

The prevailing market narrative this week was one of sharp volatility driven by macroeconomic signals. A soft CPI report early in the week fueled a risk-on rally, pushing major assets to new local highs. This optimism was later tempered by a hotter-than-expected PPI print, leading to a significant pullback. This whipsaw price action defined the trading environment.

On Typus, this translated into a cooldown in short-term trading activity following the previous week’s extremes. Total volume settled at a still-healthy ~$10.4M, a 22.19% decrease from the week prior. Despite the lower volume, user engagement showed underlying strength, with average Daily Active Users (DAU) rebounding by 12.76%.

LP Performance Reflects Trader Payouts Amidst TLP Upgrade

The TLP’s performance this week was a clear illustration of its core mechanics. The TLP token’s -2.71% return was driven by two main factors: a minor decline in the underlying asset basket of -1.69% and, more significantly, the net payout of ~$22.8K to profitable traders.

This was partially offset by a third factor: robust fee income. Despite lower trading volume, TLP fees actually grew by 20.81% to ~$12.8K , primarily due to strong funding fee income generated from the high level of sustained Open Interest.

This week also marks the official start of the TLP’s rebalancing to include suiETH and remove DEEP, a strategic move to enhance the maturity and stability of the pool.

TLP vs. SUI: A 30-Day Performance Deep Dive

The 30-day performance data highlights the TLP’s strength in generating superior risk-adjusted returns. The standard TLP strategy posted a +3.90% return over the period, while the TLP Stake strategy yielded +4.82%. Both significantly outperformed simply holding SUI spot, which returned +2.38%. The Sharpe Ratios confirm this, with the TLP Stake strategy (1.482) providing more than double the risk-adjusted return of SUI (0.691).

Traders Secure Third Consecutive Profitable Week

Traders demonstrated their skill in navigating the choppy market, booking a realized profit of +$22.8K. This marks the third consecutive profitable week, a strong trend reversal after the widespread liquidations in July. A note of caution remains, as the unrealized P&L for currently open positions sits at a negative -$28.6K, indicating some newer positions are underwater.

Open Interest Recovers Sharply, Nearing Prior Highs

While short-term trading volume cooled, long-term conviction surged. Total Open Interest reached ~$2.1M, a significant increase that approaches the all-time high of ~$2.5M seen in late July. This indicates that while day-traders may have paused, larger position traders are adding leverage with confidence. The sentiment is extremely bullish and concentrated, particularly in ETH, which shows a long/short ratio of over 2,000 , and BTC, with a ratio of over 100. This parallel growth may signal the early stage of a new altcoin rally.

The week represented a complex consolidation. The cooldown in volume was a healthy reset, but the explosion in leveraged, high-conviction Open Interest suggests the market is coiling for a significant move. The ability of traders to remain profitable while LPs took a small, mechanical loss demonstrates a balanced and functioning ecosystem, but the extreme bullish positioning warrants close monitoring for future volatility.