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 taken an interest in the Interplanetary File System (IPFS) service. Filecoin, despite its massive price drop, is still creating decentralized competition for the more 'centralized' cloud services provided by Amazon Web Services or Microsoft Azure:
- Filecoin's service does not give access to stored data to giant corporations. 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 nearly $8 million. Filecoin's customers may be primarily large corporations that don't want to give access to data to the biggest techies operating in cloud computing, and don't have enough hard drive capacity to store it;
The number of new contracts processed on the Filecoin blockchain has accelerated since June 2022. Source: Messari, Filecoin
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Open account Try demo Download mobile app Download mobile appThe network's large customers are currently the largest NFT token exchanges like OpenSea and MagicEden. It can be expected that as NFT's popularity grows, the number and volumes from these 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 more than 85% of its market capitalization since the beginning of the year, more than the cryptocurrency average;
The number of data stored by the network grew by an impressive 82% quarter-on-quarter. Source: Messari, Filecoin
- Filecoin's protocol is being 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 beginning 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 primarily from the US, 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 (FVM) protocol, which will eventually make the network compatible with Ethereum-processed smart contracts.
Filecoin chart, M15 interval. The price of the cryptocurrency is near the 71.6 Fibonacci retracement, near $4.78. A downward breakthrough could result in a quick test of previous minima near $4.6. Source: xStation5
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