FTX Drops $5B Bomb—Altcoin Season Inbound?

Bankrupt exchange FTX just coughed up $5B in recovered assets—and the crypto streets are buzzing. Where’s that cash headed next?

Altcoins primed for liftoff. With FTX clawbacks hitting creditors’ wallets, traders are betting the spillover pumps ETH, SOL, and other alts. History says liquidity floods downhill—last cycle’s repayments kicked off a 200% alt rally.

Watch the whales. FTX’s fire sale could trigger volatility, but smart money’s already front-running the narrative. (Because nothing moves markets like a crisis-turned-comeback story—ask any hedge fund manager nursing a 2022-sized wound.)

Regulators? Still figuring out stablecoins. Meanwhile, degens are leveraging up. Typical.

$5 billion back in circulation

FTX’s second round of creditor repayments – totaling over $5 billion – has officially begun.

This is a big step in the exchange’s ongoing bankruptcy resolution.

Payouts are being processed via BitGo and Kraken. Eligible claimants across both U.S. and international classes are now receiving significant portions of their locked funds.

Of course, phishing alerts accompanied the rollout, but the broader market implications were hard to miss.

This injection of stablecoin liquidity could prompt a fresh wave of trading, particularly in altcoins, as investors cautiously shift toward optimism.

Altcoin extinction!

A striking 10.5% of active cryptocurrencies disappeared in just two months. That’s more than 1,000 projects delisted or abandoned in less than two months.

Recent data showed a sharp drop in the number of listed projects since March 2025; even as Bitcoin’s price has continued climbing.

Source: Alphractal

The cause? A mix of failed experiments, rug pulls, illiquid token collapses, and the fallout from a brutal Q1 bear market. Many teams either shut down their projects, delisted them, or quietly migrated them to new ecosystems.

While painful for speculators chasing hype-driven tokens, this wave of natural selection is setting a cleaner stage for altcoins with real traction.

Leaner market, stronger foundation

After many projects collapsed, the remaining ones have real staying power. They feature stronger communities, clear utility, and healthier liquidity.

This market maturity reduces distractions from low-effort tokens. It also shifts focus to credible altcoins.

Additionally, $5 billion in fresh capital is returning through FTX creditor repayments. This strengthens the setup.

Now, solid fundamentals align with real liquidity. Smarter capital may fuel the next altcoin season, replacing speculation-driven trends.