Main points
Filecoin is a decentralized, blockchain-based cloud storage platform, and FIL coin is its native token.
FIL is one of a number of cryptocurrencies that have been charged by the U.S. Securities and Exchange Commission in recent months as being unregistered securities.
FIL encountered difficulties in 2022 and did not fare well in 2023, but can it return to the heights of 2021?
Filecoin is powered by its native FIL token and aims to leverage blockchain to make cloud storage technology truly decentralized. Although like most other cryptocurrencies, it went through a very rough time in 2022 as the market seemed to crash frequently, it looks like it will recover in 2023 as reports indicate that in the second quarter of 2023, there More people are using the system's storage. That year.
The U.S. Securities and Exchange Commission classified FIL as a potential unregistered security, sending the currency's price pummeled as investors sought to move their money to safer ground. Things got worse when the SEC sued the Binance and Coinbase exchanges in early June, causing Filecoin’s price to fall even further.
However, the market's recovery helped FIL regain some momentum, with a judge ruling that Ripple's XRP is not a security as long as it is sold on an exchange, helping to further boost the cryptocurrency and FIL.
But what is Filecoin (FIL)? How does Filecoin work? Let’s see what we can find and make some Filecoin price predictions.
From the white paper
Filecoin’s white paper – a technical document explaining what the platform is and what it actually does – says the network aims to capitalize on changes in the internet and meet the needs of people seeking more control and privacy.
It said: "Filecoin is a decentralized storage network that turns cloud storage into an algorithmic marketplace. The marketplace runs on a blockchain with a native protocol token (also known as "Filecoin"), and miners contribute money to Customers provide storage to earn this token. Instead, customers use Filecoin to hire miners to store or distribute data.
“Like Bitcoin, Filecoin miners compete to mine blocks and receive significant rewards, but Filecoin mining power is directly proportional to active storage, which directly provides a useful service to customers.”
Advantages and Disadvantages of Filecoin
Blockchain analytics company Messari recently released Filecoin’s quarterly report. In it, they outline some of the key advantages and disadvantages of blockchain.
They found that in the second quarter of 2023,
Revenue from storage users was $11.5 million, up $1.6 million year over year and $1.3 million sequentially.
Revenue from storage providers was $85.7 million, down from $258.8 million a year earlier and down from $102.4 million the year before.
Data capacity was 12.2 exabytes (EiB), down 16.7 EiB year-over-year and 13.8 EiB quarter-over-quarter.
Storage utilization was 7.6%, up from 0.5% a year ago and up from 4.1% in the previous quarter.
Advantages of Filecoin
Messari says Filecoin
has been able to encourage people to join the platform by using the Filecoin Plus program.
Has a simple user interface to help new users better use the system.
The storage user and provider community is actively growing.
Disadvantages of Filecoin
Messari also stated that Filecoin
The SEC is still investigating whether FIL is a security.
It has seen a drop in the amount of rewards it hands out to users, thus potentially discouraging people from using the system.
Service charges have been added.
Messari’s report is generally positive for Filecoin, what does this mean for Filecoin price predictions?
First, let’s talk about what Filecoin is.
Derived from Filecoin (FIL)
Filecoin aims to help people use cloud storage on the blockchain. The idea is that since the cloud is actually a decentralized network and people can access their files from any device with an internet connection, then logically the organization of the network is also decentralized.
Founded in 2014 by California cryptocurrency entrepreneur Juan Benet, Filecoin began as a sidechain for the interstellar file network storage system. However, it conducted an initial coin offering (ICO) in 2017 and launched its mainnet in 2020. Filecoin is backed by its native token, which is represented by FIL’s stock handle.
How Filecoin works
Filecoin uses a consensus mechanism called Proof of Spacetime. According to the Filecoin white paper, Proof of Spacetime features blocks created by miners who store data in them. This enables the protocol to provide data storage and retrieval in a decentralized manner.
Clients pay to store and retrieve data, and storage miners earn FIL by providing storage, while retrieval miners earn FIL by retrieving data. In addition to being used to reward miners, FIL can also be bought, sold and traded on exchanges.
FIL Price History
Now it’s time to review Filecoin’s price history. Keep in mind that while past performance is not indicative of future results, understanding how a coin has behaved in the past and what it did before can give us some context if we want to explain or make a Filecoin price prediction.
When Filecoin first hit the public market in late 2017, it was valued at around $11, before being valued at $25 during the cryptocurrency bubble the following January. After that, the market plummeted and FIL spent about $5 over the next two years or so.
Things improved again in October 2020 with the launch of mainnet, with FIL closing the year at $24.35. Things got even better in the new year as the market boomed, with FIL hitting an all-time high of $237.24 on April 1. The coin then fell, falling below $50 over the summer, bouncing back above $100 in September, only to fall again by the end of the year, closing at $34.27.
In 2022, the cloud hanging over Filecoin broke, prices collapsed, and the market suffered a series of crashes, falling below $10 in May and $5 in June. It rallied back above $10 in July and August, but then fell and closed at $3.01.
2023 started off well, with the coin rising to $9.40 on February 19, but then falling. Following news reports, investment firm Grayscale, which holds the FIL trust, was informed by the SEC on May 17 that Filecoin was an unregistered security worth approximately $4.55. While the market initially appeared to be simply dismissing concerns, lawsuits from Binance and Coinbase hammered the token, which dropped to $2.88 on June 12.
FIL recovered over the next month or so, and as of July 17, 2023, FIL was worth approximately $4.41
At that time, the total amount of FIL in circulation was 1.9 billion, of which the total amount of FIL was 436.7 million. This brings the cryptocurrency’s market capitalization to $1.9 billion, making it the 30th largest cryptocurrency by this metric.
Filecoin Price Analysis
Filecoin was shocked by the news that the SEC was suing Binance and Coinbase exchanges. The coin was trading at $4.66 before the Binance case was announced on June 5, falling to $2.88 on June 10, a 38% drop in just five days. By July 17, the index had recovered more than 50% from its lows.
Filecoin Price Prediction
So much said and done, let’s now take a look at some Filecoin price predictions made as of July 17, 2023. Keep in mind that price predictions, especially when they involve potentially volatile commodities like cryptocurrencies, often end up being predicted. Incorrect. Also, keep in mind that many long-term cryptocurrency price predictions are made using algorithms, which means they can change at any time.
1. CoinCodex’s short-term price prediction for Filecoin in 2023 is somewhat complicated. The site says FIL will have a tricky week or so, falling to $4.39 by July 22, but will likely recover in the weeks after, reaching $5.06 by August 16. However, the site's technical analysis is neutral, with 15 indicators giving bullish signals and 14 giving bearish signals.
Filecoin Predictions for 2023
In terms of other Filecoin cryptocurrency price predictions for this year, CryptoPredictions.com states that FIL should recover to $5.25 by the end of the year. Digital Coin Price was even more enthusiastic, saying the coin would trade at an average price of $9 in 2023.
Filecoin Predictions for 2025
As for Filecoin’s long-term price prediction in 2025, DigitalCoinPrice says the cryptocurrency will be worth an average of $45.81 that year, while CoinPriceForecast suggests it will trade at $13.76 in June and $14.59 in December. Price Prediction Network, meanwhile, has made a price prediction for FIL, with its price surging to around $74.22.
Is FIL a good investment?
Filecoin has suffered over the past 18 months or so, losing over 90% of its value since the fall of 2021. While it initially seemed to ignore the SEC's apparent classification of it as an unregistered security, regulators Binance and Coinbase have put it back in the spotlight. Despite this, it remains firmly among the top 50 cryptocurrencies by market capitalization and is not without its fans. We'll have to see how the market reacts and whether it recovers over time.
Will FIL rise or fall?
No one really knows now. While many price forecasts are generally optimistic, price forecasts are often wrong, at least in the long run. Also remember that prices tend to keep climbing as ecology develops!
Should I invest in FIL?
You need to do your own research on FIL before investing in Filecoin. But the most important thing is to never invest more money than you can afford to lose, and at the same time adopt a fixed investment method.
Frequently Asked Questions
How many Filecoins are there?
As of now, the total amount of FIL in circulation is less than 2 billion, of which the total circulating amount of FIL is 470 million.
Will Filecoin hit $100?
It can be done, but most sites indicate that even if it does, it won't be around for quite some time. PricePrediction.net says FIL prices should hit triple digits by 2025.
What is Filecoin used for?
The Filecoin blockchain is a decentralized remote storage network, and the FIL cryptocurrency is used to help support it