FTX Token (FTT) Recent Rally Explained: Solana Token Redemption Kicks Off a Surge

FTX Token's (FTT) price erupted in the past 24 hours by over 28%, from a $1.78 low to a $2.29 high.

FTX Token (FTT) Surged 28% In a Day, Here’s Why

The price of FTX Token (FTT) has erupted by over 28% in the past 24 hours, surging from a $1.78 low to a $2.29 high. In the first hour of Thursday morning, it still managed to keep around 14% of its gain in the daily chart even though it had already retracted to $2.

Investor interest in FTT surged, as displayed by its more than 216% increase in trading volume in a day as $87.84 million worth of the crypto moved across wallet addresses. Meanwhile, the market cap of its 328.9 million circulating supply soared to $679.94 million. All these resulted in higher liquidity for the FTX token, with its volume/market cap rate reaching 11.98%.

Except in the seven-day range where it lost roughly 7% of its value, FTT has shown impressive performances in the longer timeframes. So far, it has accumulated above 61% and 97% over its one-month and one-year runs, respectively.

The FTX token’s current valuation, however, remained over 97% down from its all-time high of $85.02 three years ago. Its historic peak came a little over a year before the Sam Bankman-Fried-led crypto exchange platform filed for bankruptcy.

Solana Token Redemption Kicks Off a Rally

Despite its closure a couple of years ago, FTX’s collapse still resonates in the crypto market. Almost every development in its courtroom drama and decisions by its bankruptcy estate have kicked off significant price action for its token.

In the past 24 hours, Bitcoin (BTC) once again recovered the $68 territory, which led to renewed optimism in the broader crypto market. In fact, the event even trickled down to the spot crypto exchange-traded funds (ETFs) in the US over the period. Notably, spot Bitcoin ETFs closed with $458.5 million in net inflows, while Ether ETFs logged $24.2 million in total net inflows at Wednesday’s market close.

While greatly benefiting from BTC’s rebound, the FTX estate’s ongoing reorganization plan had more to do with FTT’s recent rally. Last Monday, the now-defunct exchange’s administrators unstaked an enormous amount of its Solana (SOL) tokens that were still locked in staking.

Based on observations from market trackers like Wu Blockchain, a Solana staking address that was linked to FTX and Alameda redeemed around 178,631 SOL. This was approximately $28 million during the start of the workweek’s prevailing SOL to USD exchange rate.

The funds were expected to be moved to major crypto exchanges, like Binance or Coinbase, as earlier reported by the crypto publication.