Filecoin [FIL] is making a stunning comeback in 2023, is this why?

  • At the time of writing, FIL has jumped 25% from the previous day.
  • Filecoin’s daily cumulative revenue over the past 180 days was second only to Ethereum.

After experiencing significant stress for most of 2022, Filecoin’s [FIL] The bullish rally has seen impressive gains since the start of 2023. The coin is up 25% from the previous day at press time, according to data from CoinMarketCap.

How much is 1,10,100 FIL worth today?

One possible reason for the continued increase could be the excitement behind the smart contracts that will soon be released on the network, as pointed out by Wu Blockchain above. In addition, the introduction of smart contracts could lead to the adoption of the Filecoin network, which specializes in data storage.

The big upgrade is calling the Filecoin community

The launch of the Filecoin virtual machine [FVM] on the mainnet is expected to bring smart contracts and user programmability to the Filecoin blockchain. Prior to the launch, FIL will be holding a one-day event called The Countdown to FVM, which will feature exclusive FVM content and a manufacturer expo.

However, the buzz has not penetrated through other network parameters. Transaction fees have dropped sharply in the last week, which could discourage new validators from entering the network, Token Terminal pointed out.

On the other hand, earnings for FIL holders plummeted 67% after hitting a monthly high on February 7. The network traffic also left a lot to be desired.

Source: Token Terminal

Despite the drop in recent days, Filecoin’s cumulative daily revenue over the past six months was $11.9 million, second only to Ethereum [ETH].

Source: Token Terminal

Investor sentiment is becoming favorable

Filecoin recorded excellent growth on the DeFi front as well, with its total lock value (TVL) hitting an all-time high on February 15, according to data from DeFiLlama. This growth was fueled by the Filet decentralized mining platform.

Source: DeFiLlama

Read Filecoin [FIL] Price Prediction 2023-24

According to Santiment, FIL seemed to get the thumbs up from investors as evidenced by the positive weighted sentiment for the token. The Binance Funding Rate was positive, indicating that there was significant demand in the derivatives market, which could push the price further.

However, the slight drop in development activity may be a cause for concern as the Filecoin community has been eagerly awaiting the releases of the proposed improvements.

Source: Santiment

Leave a Comment