Dear cryptocurrency players, on February 18, 2025, FTX officially launched the first batch of creditor compensation plans, and a total of $1.6 billion in funds began to be gradually released. This not only marks a milestone in the FTX bankruptcy case, but also injects new liquidity into the market. Especially for ETH (Ethereum), this wave of capital inflow may be an excellent window for bargain hunting. Today, let's talk about how FTX compensation brings opportunities to ETH and its potential for explosion in the late bull market.
New liquidity opportunities brought by FTX compensation
FTX's compensation plan will release $1.47 billion to $1.65 billion in funds, with the first batch of $120 million being distributed on February 18 to small users holding claims below $50,000. Although the compensation is based on the prices in November 2022, this does not hinder the potential for funds to flow back into the market. Binance data shows that after similar incidents in the past (such as the Mt.Gox compensation), about 30%-50% of funds will be reinvested in the crypto market. The scale of FTX’s payout this time is larger, involving a higher proportion of “crypto native” users, and is expected to significantly improve market liquidity. As the second largest asset by market value, ETH is naturally one of the key areas of investment favored by investors.
Explosive power in the later stages of the bull market: Dual-driven by liquidity and ecosystem
Why is it said that ETH may explode in the later stages of the bull market? The liquidity from FTX compensation is just the starting point, and the deeper driving forces are as follows:
Capital rotation effect: After BTC rises to $100,000, market funds often shift to assets with better cost-performance. Binance's trading depth and ETH/USDT trading volume indicate that ETH has become a popular choice for capital rotation. Historical data shows that in the later stages of the last bull market, ETH outperformed BTC, with returns reaching as high as 150%.
Technical upgrades support: Ethereum's Prague upgrade (expected to be completed in April 2025) will further optimize network performance and reduce gas fees, attracting more developers to join. Binance has fully supported Layer 2 projects in the ETH ecosystem (such as $ARB $OP ), all of which lay a foundation for ETH's long-term value.
Ecological boom reignited: The liquidity brought by FTX compensation may reignite the DeFi and NFT boom. Data on the Binance chain shows that the total locked value in the Ethereum ecosystem has exceeded $50 billion. Once market sentiment improves, the demand for ETH will surge.
The $1.6 billion liquidity released from FTX compensation is like a timely rain, injecting vitality into the market.$ETH
Starting from a valuation low of $2,700, combined with technical and ecological advantages, ETH may experience an explosion in the later stages of the bull market. Acting now might allow you to ride the wave of this dividend. Are you ready?