TL;DR

A weak US jobs report fueled a rally in traditional risk assets, but the crypto market’s reaction was notably muted, signaling a period of consolidation. On Typus, trading activity rebounded with volume increasing by 37% to ~$8.4M. LPs enjoyed a solid +2.31% return, primarily driven by the rising asset basket. Trader losses narrowed significantly to -$15K, and Open Interest recovered strongly to ~$1.7M, suggesting the market is stabilizing and building a new foundation.

Crypto Lags Broader Market Rally as Volume Rebounds

The prevailing market narrative this week was driven by a weak US jobs report, which solidified expectations for a Federal Reserve rate cut. While this news propelled traditional risk assets like gold and equities to new highs, the crypto market’s response was comparatively sluggish. This divergence suggests that after recent volatility, crypto traders are in a more cautious consolidation phase, waiting for a stronger catalyst.

Despite this broader market uncertainty, activity on the Typus platform saw a healthy rebound. Total trading volume increased by 37.37% to ~$8.4 million. However, average Daily Active Users (DAU) continued to decline, which may be partly attributable to the current pause in official trading competitions.

LPs Capture Market Upside with +2.31% Return

It was a solid and straightforward week for liquidity providers. The TLP token delivered a positive return of +2.31%, closely tracking the performance of its underlying asset basket, which gained +2.49%. The return was primarily driven by price appreciation in key assets within the pool, such as SUI (+4.53%) and xBTC (+2.65%). Fee income saw a sharp decline from the previous week’s record high, which was expected due to a normalization of funding fees after the major liquidation event.

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

The 30-day performance data continues to highlight the TLP’s value in turbulent markets. Over the past month, a period which included significant market downturns, the TLP Stake strategy limited losses to just -3.89%. In stark contrast, a strategy of simply holding SUI spot would have resulted in a -13.23% loss. The Sharpe Ratios further confirm that the TLP strategies provided far superior risk-adjusted returns during this volatile period.

Trader Losses Narrow Significantly, Signaling Stabilization

After several weeks of extreme outcomes, trader performance began to normalize. Realized losses for the week were -$15K, a dramatic improvement from the heavy losses of the prior weeks. This significant reduction in losses suggests that the market is finding a new equilibrium after the recent major deleveraging events. The nearly flat unrealized P&L (+$237) further supports this theme of stabilization.

Open Interest Rebounds as Trader Attention Shifts

The clearest sign of returning confidence was the strong recovery in Open Interest, which grew from ~$1.1M last week to ~$1.7 million. The report’s observations note that this rebound was primarily driven by activity in SUI. More interestingly, a clear shift in trader focus is emerging, with Open Interest in assets like XRP and XAU (Gold) surpassing that of BTC this week. This may indicate that traders are beginning to position themselves for new market narratives.

The key takeaway this week is the theme of stabilization. While the broader market digests macroeconomic news, activity on Typus shows signs of building a healthier foundation. Trader losses have normalized, and Open Interest is recovering strongly, albeit with a notable rotation of interest into new assets. This suggests the market is preparing for its next major move.