Filecoin (FIL) is one of the most well-known currencies in the cryptocurrency storage sector. Last month, the FIL price and market value rose to new heights. On April 1, the coin hit $ 233.68 as the top 10 cryptocurrencies were captured by market value.
Filecoin is essentially a decentralized cloud storage network that allows users to be rewarded when they sell redundant storage on an open source platform. Filecoin is produced by Protocol Labs.
While FIL’s period in the top 10 was short-lived, it is important to note that Filecoin’s fully diluted market value has reached $ 450 billion. That’s almost half of the $ 1 trillion dollars that Bitcoin held recently for 10 consecutive days.
Over the last 30 days, Filecoin has seen a unique gain of around 440%, trading around the $ 42 mark and trading in the $ 184 range. Although the price has fallen around 20% from the all-time high on April 1, it is an incredible achievement in itself that it has stabilized at three times the price before the rally.
On March 17, the FIL token received a new print from the market. Grayscale Investments, the benchmark index for the company’s interest in cryptocurrencies, announced new funds that will invest in five cryptocurrencies. These tokens are LINK, Filecoin and Livepeer from Chainlink, Basic Attention Token (BAT) and Decentraland (MANA). As a result of this announcement, the FIL price rose by 40% within 48 hours, which indicates that society and the market as a whole have responded positively to this development.
“Data is the most valuable commodity today, and there is a constant race to find the cheapest price and the most efficient way to store data,” said Mary Tatipuet, marketing director of Gate.io, a cryptocurrency exchange, for reasons . why Filecoin gets institutional attention. Martin Gaspard, analyst at CrossTower – Digital Asset Exchange, told Cointelegraph how this announcement actually affected markets:
The Filecoin Trust had only $ 8.1 million in assets as of April 5, 2021, according to Grayscale. This is a very small amount compared to the last $ 1 billion in 24-hour trading volume that CoinGecko shows, indicating that there are other major drivers behind the price increase. ”
Cameron Winklewos, co-founder of the Gemini Stock Exchange, indicated that he was not surprised by the “high” price of the symbol. He cited key proposals that the Filecoin project had made, such as “the amount of network storage capacity”, as the main drivers of growth. Tatebot further commented: “Bitwise 10 Crypto Index Fund and Grayscale have added FIL, while The9 Limited and New Universal have invested millions of dollars in Filecoin mining.”
However, many different factors play a role here.
The Chinese market plays a key role in Filecoin.
Chinese-based crypto-journalist Wu Blockchain tweeted that on the day FIL reached a full-time high, China’s largest trading exchange, Huobi, recorded a significant trading volume with a 24-hour trading volume of $ 24.2 billion. … On the same day, this size was almost three times the size of Ether (ETH) and Bitcoin (BTC). Gaspard further stated:
Filecoin is popular in China and creates great interest from Chinese miners who have to provide the FIL token as security, which leads to demand for the token. Furthermore, due to the lack of mining platforms BTC and ETH, Filecoin mining seems to be an attractive option for these miners. ”
As of April 9, Huobi accounted for almost 40% of Filecoin’s daily sales, according to CoinGecko. These data confirm the view that interest in Filecoin is primarily driven by retail investors and miners in China. The hype surrounding this symbol in China is such that there are reportedly even posters in the subway announcing Filecoin.
This is similar to the Bitcoin stickers placed in London’s Soho, except that Filecoin is a clear ad that encourages retail investors to buy the token.