Sign in Subscribe

Weekly Index Highlights, February 3, 2025

Crypto saw broad declines in the past week, with SOL -9.88% and Avalanche -9.56% leading the losses. ETH staking yields fell to 2.75%, whilst volatility eased with BVXS down to 55.18. The CF BIRC & Cap Series saw sharp declines, reflecting risk-off sentiment & continued institutional repositioning.

CF Benchmarks

• 4 min read
Weekly Index Highlights, February 3, 2025

Market Performance Update

The digital asset market experienced a notable pullback over the past week, with all CME CF Single Asset indices posting declines. Solana (SOL) led the downturn, falling -9.88% weekly, though it holds a YTD return of +11.10%. Avalanche (AVAX) closely followed with a -9.56% drop, bringing its YTD performance to -15.08%. Chainlink (LINK) saw a significant weekly decline of -7.35%, though it retains a YTD gain of +8.78%. XRP (XRP) and Cardano (ADA) posted losses of -5.53% and -6.02%, bringing their YTD returns to +28.44% and +0.16%, respectively. Bitcoin (BTC) and Ether (ETH) also saw declines of -2.39% and -1.85%, with YTD performances of +5.45% and -7.75%.

Sector Analysis

The digital asset market saw a broad decline this week, with leaders and laggards emerging across CF DACS segments. In the Finance sub-category, Borrowing & Lending struggled, with SPELL leading losses at -11.72%, while ONDO showed relative resilience at -2.14%. Asset & Wealth Management saw LDO gain +4.15%, contrasting with YFI’s steep -9.42% drop. Trading platforms and Diversified Financial Services underperformed, with CRV (-14.01%) and AMP (-14.87%) leading declines. Culture assets struggled, particularly in Gaming, where PRIME (-11.68%) and AXS (-11.30%) lagged. Meme Coins were weak, with BONK (-17.40%) dragging the segment. Computing tokens saw the largest losses, with FET (-19.23%) and RNDR (-18.28%) declining sharply. Meanwhile, Settlement tokens were mixed; LTC gained +2.24%, but ALGO (-12.34%) and HBAR (-12.31%) suffered significant drops.

Staking Metrics

The CF Ether Staking Reward Rate Index (ETH_SRR) declined by -17.53 basis points over the past week, ending at 2.75%, marking a -5.99% weekly drop and a YTD decrease of -5.84%. The index saw fluctuations, peaking at 3.33% before trending downward.

Meanwhile, the CF SOL Staking Reward Rate Index (SOL_SRR) remained relatively stable, dipping slightly by -4.05 basis points to 6.88%, with a modest YTD gain of +7.05 bps. The data highlights continued declines and volatility in Ethereum staking yields, while Solana staking rates exhibited resilience with minor week-over-week fluctuations.

Market Cap Index Performance

Our CF Capitalization Series experienced declines across the board this past week, with diversified weightings underperforming their free float counterparts. The CF Large Cap Index (Diversified Weight) posted a -4.47% weekly loss, bringing its YTD return to +2.90%. The CF Broad Cap Index (Diversified Weight) saw a steeper decline of -4.77%, reducing its YTD performance to +2.17%. Free float market cap-weighted indices fared slightly better, with the CF Large Cap Index and CF Broad Cap Index dropping -3.22% and -3.36%, respectively. The CF Ultra Cap 5 and CF Institutional Digital Asset Index recorded weekly losses of -3.00% and -2.31%. The declines highlight broad market weakness, particularly in diversified-weight indices, despite moderate YTD gains.

Classification Series Analysis

The CF Classification Series faced broad declines this past week, reflecting persistent headwinds for digital asset verticals. The CF Blockchain Infrastructure Index recorded the steepest drop, falling -9.28% for the week, bringing its YTD return to -14.76%. The CF Digital Culture Composite Index followed closely, declining -8.32%, deepening its YTD loss to -17.79%. The CF Web 3.0 Smart Contract Platforms Index also struggled, posting a -7.12% weekly drop, reducing its YTD performance to -4.34%. Meanwhile, the CF DeFi Composite Index fell -4.46%, extending its YTD decline to -11.09%. The week’s sharp losses highlight ongoing pressure on higher-beta tokens as 2025 progresses, with infrastructure and culture-related assets facing the heaviest setbacks.

Volatility 

The CF Bitcoin Volatility Index Settlement Rate (BVXS) declined significantly over the past week, falling by -9.48% to settle at 55.18. Year-to-date implied volatility metrics also dropped, with an -11.14% YTD change. Realized volatility followed a similar downward trend, beginning the week at 46.57 and ending at 44.85. 

An analysis of the CME Bitcoin Volatility Surface reveals increased convexity over the past week, despite a flattening skew across strike ranges as of January 31, 2025. This suggests growing dispersion in market expectations, with traders positioning for potential asymmetric volatility moves. The declines in both implied and realized volatility indicate a shift in sentiment, yet the rise in convexity highlights the potential for sudden market shifts.

Interest Rate Analysis

The CF Bitcoin Interest Rate Curve saw a sharp repricing across tenors this past week, with significant declines in both short- and medium-term rates. The SIRB dropped to 0.32%, a steep decline from last week’s 3.75%. The 1-Week tenor fell to 0.85% (-411 basis points), while the 2-Week and 3-Week rates declined to 1.09% (-344 basis points) and 2.59% (-215 basis points), respectively. Medium-term tenors also adjusted downward, with the 1-Month rate at 4.30% (-73 basis points) and the 5-Month rate plummeting to 0.00% (-261 basis points). These shifts suggest easing short-term borrowing demand as market participants reassess liquidity needs and risk exposure.

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell any of the underlying instruments cited including but not limited to cryptoassets, financial instruments or any instruments that reference any index provided by CF Benchmarks Ltd. This communication is not intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. Please contact your financial adviser or professional before making an investment decision.

CF Benchmarks Ltd (“CF Benchmarks”), a company registered in England and Wales with company number 11654816 and authorised and regulated by the Financial Conduct Authority. Information about us can be found on the Financial Services Register (register number 847100).

Registered Office: 6th Floor One London Wall, London, United Kingdom, EC2Y 5EB.

You agree not to, and have no rights to, use the CF Benchmarks Data to create, calculate, issue, settle, maintain, support or develop any financial instruments (including but, without limitation exchange traded products, certificates, warrants, contracts for difference, swaps, binary options, structured products), indices, products, services (including but without limitation, portfolio management services, pre- and post-trade risk management services, or valuation services) or any other derivative works without the express written consent of CF Benchmarrks.

You agree not to analyze, reverse-engineer or disassemble any CF Benchmarks data and not to insert any code or product to manipulate the Website content in any way that affects any user’s experience. Unless CF Benchmarks gives you prior written permission, use of any Web browsers (other than generally available third-party browsers), engines, scripts, software, spiders, robots, avatars, agents, tools or other devices or mechanisms (such as crawlers, browser plug-ins and add-ons, or other technology) to navigate, access, copy in bulk, retrieve, harvest, index, search or analyse any portion of the Website is strictly prohibited.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of CF Benchmarks Ltd. Use and distribution of the CF Benchmarks data requires a license from CF Benchmarks or its authorized licensing agents.

All information is provided for information purposes only. All information and data contained on this website is obtained by CF Benchmarks, from sources believed by it to be accurate and reliable. Such information and data is provided "as is" without warranty of any kind.

CF Benchmarks, nor its directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or implied, either as to the accuracy, timeliness, completeness or merchantability of any information or of results to be obtained from the use of the CF Benchmarks indices or the fitness or suitability of the same indices for any particular purpose to which they might be put. Any representation of historical data accessible through CF Benchmarks indices is provided for information purposes only and is not a reliable indicator of future performance.

No responsibility or liability can be accepted by CF Benchmarks nor their respective directors, officers, employees, partners or licensors for any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this website or links to this website.

CF Benchmarks and its respective directors, officers, employees, partners or licensors do not provide investment advice and nothing accessible through CF Benchmarks, should be taken as constituting financial or investment advice or a financial promotion. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of any assets.

CF Benchmarks is a member of the Crypto Facilities group of companies which is in turn a member of the Payward, Inc. group of companies. Payward, Inc. is the owner and operator of the Kraken Exchange, a venue that facilitates the trading of cryptocurrencies. The Kraken Exchange is a source of input data for certain CF Benchmarks indices. Payward, Inc. is the owner and operator of the Staked, a venue that operates the block production nodes for decentralized PoS protocols on behalf of institutional investors. Staked.us is a source of input data for certain CF Benchmarks indices.

Please refer to the individual product family documentation for more information about applicable input data sources.