Filecoin is the cryptocurrency of a project that creates a decentralized platform for data storage. Its creators have partnerships with Harvard University and US defense giant Lockheed Martin, among others, who have been interested in the Interplanetary File System (IPFS) service. Filecoin, despite its massive price drop, still creates decentralized competition for the more “centralized” cloud services provided by Amazon Web Services or Microsoft Azure:
- The Filecoin service does not provide access to stored data to companies. Data is stored by decentralized nodes building a network and encrypted. The blockchain is still relatively small, with the largest node operator holding 1.5 million tokens, valued at almost $8 million. Filecoin customers can be mainly large companies that do not want to give access to data to the biggest technicians operating in cloud computing, and do not have enough hard disk capacity to store them;
The number of new contracts processed on the Filecoin blockchain has accelerated since June 2022. Source: Messari, Filecoin
The big clients of the network are currently the biggest NFT token exchanges like OpenSea and MagicEden. It can be expected that as the popularity of NFTs increases, the number and volumes of such exchanges for Filecoin will increase. Unfortunately, the growing popularity of the network itself is not fully correlated with the price of Filecoin, which has lost over 85% of its market capitalization since the start of the year, more than the average cryptocurrency.
The amount of data stored by the network increased by 82% quarter over quarter. Source: Messari, Filecoin
- The Filecoin protocol is built by nearly 7,000 developers. According to CoinDesk, the decentralized file storage and exchange protocol has seen a 700% increase in the number of data providers since the start of this year. According to Colin Evran of Filecoin Protocol, the number of suppliers is growing at a rate of 20% per month, with orders coming mainly from the United States, South Korea and Hong Kong. According to the founders, 20,000 individual users are currently using the protocol;
- In 2023, Filecoin intends to launch the Virtual Machine Protocol (FVM), which will eventually make the network compatible with smart contracts processed by Ethereum.
Graph filecoin, interval M15. The price of the cryptocurrency is near the 71.6 Fibonacci retracement near $4.78. A breakout to the downside could lead to a quick test of previous lows near $4.6. Source: xStation5
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Filecoin price drops despite customer growth ⚡
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