The on-chain options market has reached unprecedented trading volumes, with $44 million recorded in the first week of February and $28 million in the last week of January. The majority of this activity is concentrated in the Ithaca and Derive protocols, which accounted for $26 million and $11 million in trading volume, respectively, last week. Overtime, the third-largest protocol, saw $2 million in trading volume. The surge in trading volume is attributed to several factors, including the declining attractiveness of USDT lending yields on Aave, which have fallen to around 2%. This has prompted investors to seek alternative investment opportunities with higher returns. Additionally, market anticipation for Hyperliquid's upcoming HIP-4 market may also be contributing to the increased activity.