FTX Token (FTT), the native cryptocurrency of the now-defunct exchange FTX, has risen 2.8% over the past 24 hours and is trading above $1.24.
While not dramatic, these gains continue a rebound from recent lows near $1.12 reached earlier in the week.
The uptick comes as the FTX creditor community gains renewed momentum ahead of the second phase of bankruptcy distributions, a program totaling $5 billion.
So what might this distribution initiative, due to begin on May 30, 2025, mean for FTT?
Recent price action for FTX Token
Over the past month, FTT has posted a notable advance of roughly 32%, fueled largely by speculation about the bankruptcy estate’s upcoming distributions.
Still, the token faced downward pressure last week, sliding to about $1.12 before recovering to $1.24 in the last 24 hours.
The pullback threatened to stall the altcoin’s momentum amid broader market headwinds.
After an initial pause in the estate’s plan to distribute more than $5 billion to creditors starting May 30, 2025, the token experienced renewed weakness.
Now that distributions—expected to range from roughly 54% to 120% of original claims—are set to begin, trading activity around FTT has increased.
According to CoinMarketCap data, daily volume rose 21% in the past 24 hours, reaching $26.7 million.
FTX distributions and potential price implications
The bankruptcy estate’s plan to return more than $5 billion to creditors marks a key milestone in the exchange’s recovery process.
Expectations surrounding the announced payouts previously helped fuel a 14% jump in FTT’s price, reflecting investor optimism tied to the distribution timeline.
Some market participants view the repayments as constructive for confidence in FTT, which could translate into renewed demand as creditors receive funds.
However, the fallout from FTX’s collapse in November 2022 continues to weigh on the token; FTT collapsed below $1 following the exchange’s implosion and remains far below its peak.
FTT did reach an all-time high near $85 in September 2021, but recent months have shown signs of resilience despite ongoing uncertainty.
🚨TOMORROW :
FTX will begin distributing $5B in stablecoins to creditors starting May 30th.
Creditors are getting their funds paid in stables, so expect potential huge inflows of capital to pour into the crypto markets throughout the weekend📈
Also keep an eye on $FTT (FTX… pic.twitter.com/HVW9k63ca3
— Bitcoinsensus (@Bitcoinsensus) May 29, 2025
Although FTT has mostly traded below $2, periodic rallies have lifted prices temporarily, often tied to news about the bankruptcy process.
A February 2025 post from jailed former CEO Sam Bankman-Fried triggered a short-lived 30% rally that pushed FTT to $2.34 before the price retreated.
That pullback was severe: FTT dropped to a low of $0.78 in early April 2025.
Bears may still pressure the token, but ongoing speculation about creditor repayments and shifting market sentiment are likely to be major catalysts for FTT going forward.