Why FTT Volume is up 450%?

The FTX collapse happened two years ago but is still a haunting memory for most crypto investors, especially the victims who lost their crypto holdings. However, with the lead elements behind the collapse facing the consequences, things were getting back in line, and as a result, the FTX token price has begun gaining strength. Interestingly, the FTT price has surged 12% due to the trading volume hitting the roof with a 450% increase in the last 24 hours.

Why Did FTT Volume Hit $161.31M After 450%?

With Sam Bankman and his associates like Caroline Ellison starting imprisonment, the FTX exchange is under new leadership. In the last two years, things have been moving in creditors’ favor, as the firm is focused on restoring the reputation but first on formulating a repayment plan for the victims.

Just yesterday, the FTX Debtors announced the $12B repayment under Chapter 11, effective on Jan 3, 2025. For the smooth distribution of these billions of funds, the firm has collaborated with the cryptocurrency exchange Kraken and digital custodian BitGo. More importantly, the initial creditor distribution will happen within 60 days of the effective date. In this, the creditors can claim their acknowledged holdings by cash or stablecoins.

The FTX Debtors today announced that the effective date for its Plan of Reorganization has been set for January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Read more here: https://t.co/7Hggm5cTlS

— FTX (@FTX_Official) December 16, 2024

Soon after this announcement, the funds began pumping into the token, leading to the FTT trading volume hitting the roof after a 450% increase within 24 hours. With that, the current TV is at $161.35M, which is much higher than the average. Not only that, the FTX token price also took the jump, raising hope against the holder for recovery of their losses.

FTX Token Price Surged 12%, $20 Next?

On December 16, the FTX official X page announced the debtor’s redistribution plan. At the same time, the FTX token price jumped from $2.5 to $3.1 within 1 hour. Although it had a correction since then, the FTT price stayed bullish, leading to a massive recovery from the earlier drop. It is currently trading at $2.97 after the earlier charts reported a bullish signal in the double-bottom pattern. With that, experts see a 550% FTT price surge, hitting $20. The FTX price near this was last seen right before the FTX crash. However, that is only possible if the charts maintain the pattern.

Regardless, other crypto analysts, including Crypto Signals’s FTX price prediction, see a potential jump to $$3.5 before hitting the $4.79 on the extended target.

Bottom Line

Two years after the FTX crash, things are moving in the creditor’s favor, as the debtors have introduced the repayment plan. It will focus on distributing around $12B of funds in cash or stablecoins, effective on January 3, 2025. This FTX news has played the biggest role in the FTX token price jump, as the investor’s interest returned to the asset, leading to the high FTT trading volume. However, similar jumps have happened before, especially with the Bull’s dominance and Bitcoin price hitting ATH, which is why the sustainability of this jump is contradictory. However, with the formation of a double bottom pattern, the FTT price can hit $20 if the pattern stays maintained.