Filecoin Price Up 24.53% – Time to Buy FIL Coin?

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Filecoin (FIL) accumulated significant gains over the past 24 hours, which pushed the price above the $100 mark.

The price increase has been attributed to the recent new developments in the Filecoin network. This article explores the Filecoin project and its potential for growth. Time to buy FIL? Let’s find out.

Filecoin: Decentralised Storage Network

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Filecoin was founded by Juan Benet after raising $205 million in an initial coin offering (ICO) in 2017. Although the project was expected to be launched in mid-2019, the mainnet wasn’t ready until mid-October 2020.

Filecoin is based on IPFS, or the InterPlanetary File System, a decentralised web hosting service built by Protocol Labs. The network is secured through proof-of-replication (PoR) and proof-of-spacetime (PoST).

Filecoin is a blockchain network that stores data in a decentralised manner. The system leverages decentralisation to store users’ data, making it easily retrievable and hard to censor. Filecoin empowers users to be the custodians of their data. Users pay competitive prices to storage miners to ensure their files are stored correctly and safely over time.

FIL, Filecoin’s native currency, is used for transactions on the network. The coin is also used to reward storage miners on the network in exchange for providing computer storage.

FIL on the Rise

Filecoin’s phenomenal rise today comes amidst rallies from large-cap crypto assets like Bitcoin and Ethereum, with both rising 2.98% and 1.66%, respectively. FIL increased in value by 24.53% in the past 24 hours and is now trading at $116.36. This current price is the storage token’s highest since June 4 this year, when it traded at $87.87.

FIL’s recent bullish momentum started last week Tuesday when the coin began its ascent from $76.9 to $78.34. By Friday, it had increased to $90.62. Then in a huge jump on Sunday, FIL rose from $96.04 in the morning to $114.21 in the evening.

The upward trajectory has persisted since, bringing the coin to its current price. FIL’s market cap is almost at $12 billion, and the asset is now the 18th largest cryptocurrency. Investors interested in this asset may want to buy FIL now.

FIL: Technical & Fundamental Analysis

FIL’s technicals on the chart show that it may likely continue its upward pace. The coin’s relative strength index (RSI) stands at 77.84, indicating that it is above the overbought zone.

FIL is currently trading above the 20-day moving average (MA) price of $116.16, indicating a bullish trend. This is positive news for investors who want to buy FIL.

Analysts at Wallet Investor predict that FIL would rise from $116.229 to $125.283 in one year, and in five years, it will trade at $336.377. Another digital asset data site Digital Coin offers an even more bullish FIL coin prediction for the coming years.

According to Digital Coin, FIL would trade at an average of $206.03 in the next one year and $406.92 in five years.

The recent strength in FIL’s price comes after CryptoKitties creators Dapper Labs (and Flow) announced a partnership with Filecoin to improve non-fungible tokens (NFTs) ownership and storage.

Dapper Labs believe that Filecoin’s provable and decentralised storage combined with the firm’s experience with NFTs and Flow’s IPFS content addressing would complement each other. In addition, Filecoin is actively working with other developers in the cryptocurrency space to expand its ecosystem. The network has announced several collaborations already.

The network inked a deal with decentralised finance (DeFi) platform JigstackDAO, which plans to use Filecoin and its IPFS storage system to store NFTs.

On August 6, Filecoin partnered with Chainlink’s oracle protocol to launch a grant initiative for projects in the crypto space. The initiative aims to speed up the development of hybrid smart contracts to leverage code running on the blockchain while managing data computation processes off-chain.

Last month, Filecoin also collaborated with Polygon to accelerate Web3 interoperability between the two networks. A bridge was created between Filecoin and Polygon to offer free storage costs for DeFi projects that use the bridge.

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About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.