Filecoin cryptocurrency (FIL) price reached its highest level last week in more than two months, with cryptocurrency prices soaring and filecoin developers announcing a series of collaborations.
Filecoin gained up to 100% on Aug 23, hitting $82,13 since the market bottomed on July 21. At the time of this writing (August 30th), the currency had yielded some of those gains to trade around $73,11.
In this article, we examine recent storage-based cryptocurrency developments and pricing prospects for the rest of this year and beyond.
In this article, we will discuss:
What is Filecoin?
Launched out of testing mode in October 2020, Filecoin is a peer-to-peer network developed by Protocol Labs. Users pay competitive prices to storage miners to ensure their files are stored correctly and securely over time. O blockchain Filecoin records transactions to provide file storage verification and transfer the native FIL cryptocurrency currency.
Unlike other cryptocurrency miners, who receive coins in exchange for complex calculations to verify transactions, Filecoin miners receive FIL coins in exchange for providing computer storage. Storage miners are defined as any individual or organization with free disk space on an Internet-connected computer.
Filecoin effectively facilitates the creation of an open market for file storage. Users can choose among mining companies to find one that offers the best balance of cost, speed, security and reliability to meet their needs. The Filecoin protocol eliminates the need for each provider to create a different application programming interface (API) or advertise their offering, reducing barriers to entry and creating a decentralized environment of independent providers.
The Filecoin protocol is enabled by Web3, the next-generation Internet, where decentralized platforms give users, rather than centralized applications run by large corporations, control over their data. This allows them to share files with colleagues over a network like Filecoin, reducing the risk of censorship and denial of service attacks.
The Filecoin concept follows the trend of increasing data center capacity as the launch of high-speed 5G telecommunications networks enables the transfer of larger data files and content creation and streaming services continue to grow.
Filecoin has seen its share of controversy since it was launched in October. Some miners were reported to have suspended operations in response to Filecoin's economic model, as they were required to stake large numbers of tokens as collateral to get started. Lack of liquidity and a sharp rise in the price of FIL led miners to borrow currency at high interest rates to participate, having purchased expensive computer equipment to meet mining requirements.
Filecoin launches collaborations
Filecoin is working with other developers in the cryptocurrency space to expand its ecosystem and has announced several collaborations in recent weeks.
On Aug. 17, Mask Network and Filecoin said they were collaborating to bridge the gap between Web2 and Web3, providing decentralized storage for Mask users. The Mask browser extension will allow users to upload files to the Filecoin network and share them over their networks with or without encryption.
On August 20, Filecoin reported that it was collaborating with Polygon to accelerate Web3 interoperability between the two networks. Filecoin and Polygon have recently created a bridge between the two blockchains, offering free storage costs for any projects that use the bridge.
They are also running two joint hackathons to encourage developers to build new apps using the bridge.
On Aug. 24, JigstackDAO, a governance platform for decentralized finance (DeFi) products, said it would use Filecoin and its IPFS storage system to store non-fungible tokens (NFTs).
On August 26, Filecoin launched a collaboration with Dapper Labs to build an NFT ecosystem on the Flow blockchain and establish best practices for storing NFT data. Dapper Labs, known for launching the CryptoKitties blockchain video game and the NBA Top Shot NFT market, designed the Flow blockchain for extensive scale and low-cost transactions designed to facilitate decentralized applications (dApps). Flow projects that integrate Filecoin solutions will be eligible to receive $5.000 grants and the opportunity to participate in future acceleration programs.
Filecoin price recovers from lows
The FIL coin launched at a price of around $30 on October 14, 2020, hitting $63 the next day, dropping to $22,49 on October 22nd. The price returned to $36 on October 25th, then traded again between $28-$30 by the end of December, when it dropped to $21.
The cryptocurrency remained relatively stable in 2021 until February 9, when it rose from $27,57 to $48,21. It dropped to $34,60 on Feb 26, then started to climb to $96,17 on March 17, in response to an announcement that the grayscale cryptocurrency investment giant has launched a fund. filecoin investment.
On March 17, there was a “double deposit” of filecoin, crediting twice to a miner's account. The proof-of-work algorithm that protects cryptocurrencies is designed to avoid spending the same funds twice, indicating a possible bug in the Filecoin code.
The cryptocurrency continued its rally, peaking at $237,24 on April 1st. The price subsequently fell and was pulled down as the broader cryptocurrency markets collapsed to record levels. The price hit a low of $40,12 on July 21, before rising to $82,13 on August 23. It has since weakened to the $73 level.
What do cryptocurrency watchers predict for the filecoin forecast (FIL / USD) in 2021?
Filecoin Price Forecast: Will the currency trend increase?
According to CoinCodex, the short-term technical analysis indicators for filecoin are bearish, with 9 giving bullish signals and 15 bearish. The three- to ten-day, 21-day and 200-day simple moving averages (SMAs) were giving sell signals at the time of writing (August 30), while the 50- and 100-day SMAs were giving buy signals. The moving average convergence divergence (MACD), the momentum indicator and the relative strength index (RSI) were neutral.
With a pivot point value of $73 on Aug. 30, there was support at $72,61 up to $70,01 and resistance at $75,20 up to $77,80.
Cryptocurrency data site DigitalCoin offers a bullish forecast of FIL currencies for the coming years. She estimates that the average price will be $114,51 in 2021, rising to $130,52 in 2022 and $222,31 in 2025. For the long term, she projects that the price will average $321,68 in 2028 , up to a peak of $354,97.
Online forecasting service Wallet Investor is more optimistic in its cryptographic filecoin price forecast. She expects the price to rise from $74,05 at the beginning of September to $105,80 at the end of 2021. For the period 2022-2025, she projects the price to rise from $177,73 at the end of 2022 to $ 390,72 at the end of 2025.
The currency price forecast predicts that FIL's price will rise from $118,07 at the end of 2021 to $330,98 at the end of 2025 and to $403,28 by the end of 2030.
It's important to keep in mind that cryptocurrency markets are extremely volatile, making it difficult to accurately predict what a currency's price will be in a few hours and even more difficult to provide long-term estimates. As a result, analysts and online forecasting sites can make their predictions wrong. We recommend that you always do your own research and consider the latest market trends, news, technical and fundamental analysis and expert opinion before making any investment decisions. And never invest more than you can lose.
How and where to buy FIL coins in 2021
Are you wondering how to buy filecoin? You can get the currency from cryptocurrency exchanges like Coinbase, Gemini and Binance. You can then withdraw the coins to a secure software or hardware wallet for safekeeping.
Frequently asked questions
Is filecoin a good investment?
Cryptocurrencies are highly volatile assets, making them riskier than other forms of investment. Whether FIL is a good investment for your portfolio depends purely on your risk tolerance and asset allocation. You should assess the level of risk you are prepared to accept before investing and never invest money that you cannot afford to lose.
Will the filecoin price go up?
Forecast sites predict that FIL's price will continue to rise in the long term. In the short term, price volatility will be driven by sentiment in the cryptocurrency markets as well as the adoption of its blockchain-based storage services.
When reading forecasts from analysts and other analysts, keep in mind that they can be wrong. The analysts you choose to believe depend on your own research and insight into market conditions.
How much will the FIL coin be worth in 2030?
The currency price forecast predicts that FIL's price could reach $400 in 2030. It is important to keep in mind that, given the volatility in the cryptocurrency markets, long-term forecasts may change frequently.