Contents

1. On-Chain
   1.1. Active Users
   1.2. Chain TVL    
   1.3. Protocol TVL    
   1.4. Stablecoins    
   1.5. Bridge Activity    
   1.6. Protocol Fees    
   1.7. DEX Activity
2. Price Action   
   2.1. Returns by Timezone
3. Derivatives   
   2.1. Perps Futures Basis   
   3.2. BTC and ETH Put/Call Ratio   
   3.3. IV   
   3.4. RV   
   3.5. IV-RV   
   3.6. IV Term Structure    
   3.7. ETH-BTC IV Spread

Summary

• On-chain usage remained concentrated in a small set of chains. Tron again led daily active users, followed by BSC and Solana (for the 10th consecutive month), with the leadership group largely unchanged despite broader market weakness (Figure 1.1).

• Capital flows deteriorated across DeFi. Most major chains recorded negative TVL changes in both percentage and dollar terms, with the largest drawdowns concentrated on Ethereum and several emerging chains (Figure 1.2a–1.2c). 

• Stablecoin balances showed rotation rather than fresh inflows. A few networks recorded strong increases while others experienced sizeable outflows, highlighting liquidity migration across ecosystems rather than broad expansion of stablecoin supply (Figure 1.4a–1.4b).

• February’s risk-off move triggered a sharp spike in volatility early in the month. Short-dated BTC and ETH implied volatility surged before gradually compressing as markets stabilised later in the period (Figure 3.3a–3.3b).

• During the sell-off, realised volatility briefly exceeded implied volatility, pushing the IV–RV spread negative before the relationship normalised as conditions stabilised toward month-end (Figure 3.5a–3.5b).

February unfolded against a volatile macro backdrop as geopolitical developments and policy signals drove alternating risk-on and risk-off moves across global markets. Crypto initially traded in a consolidation range before coming under pressure late in the month alongside broader risk assets. On-chain usage remained resilient but concentrated, with Tron, BSC, and Solana continuing to dominate active user metrics. In contrast, capital trends weakened further. TVL declined across most chains and protocols while bridge activity pointed to net outflows from several ecosystems, suggesting continued risk reduction rather than new capital entering the space. Stablecoin balances showed a similar pattern of rotation across chains rather than broad expansion. Derivatives markets captured the shift in sentiment. A sharp volatility spike accompanied the early February selloff, with short-dated BTC and ETH implied volatility surging before gradually compressing as conditions stabilised. Realised volatility briefly exceeded implied volatility during the move, pushing the IV–RV spread negative before normalising later in the month.