Glassnode has observed a slowdown in options trading activity over the past month, with a significant drop in funding flows. The network activity indicates a reduced demand for bullish leverage and short-term hedging, as the at-the-money implied volatility (IV) has decreased to 44%, a decline of over 10 points. Despite the drop in IV, the 25D skew remains positive, indicating that put options are still priced higher than calls. This pricing suggests a continued caution towards downside risks, with no indications of an imminent breakout pattern in the market.