The upcoming implementation of the Filecoin Virtual Machine (FVM) has triggered more activity on the Filecoin network, with the price of the cryptocurrency rising almost 30% in 24 hours, fuelled by Bitcoin's simultaneous rally. The implementation of the FVM is due to take place later today, it will transform Filecoin into an Ethereum-compatible blockchain enabling further scalable network expansion and smart contract processing. The network upgrade will be supported by the Binance exchange. The Filecoin price has erased the vast majority of the losses of recent weeks.
- However, a key catalyst for Filecoin will be the increase in demand for decentralized storage, which is still relatively small compared to the current size of the Filecoin network;
- Investors believe that, similar to the Ethereum Virtual Machine (EVM), the FVM will drive increased programmability and developer interest in Filecoin;
- The cryptocurrency is a decentralised storage system. Filecoin's task is to create an economy of data, storable in a 'decentralized cloud'. No one but the owner can access it;
- In 2022, Lockheed Martin and Harvard University, among others, declared an interest in Filecoin's system, IPFS (Interplanetary Files System);
- The market sees the project as 'crypto-competition' for Amazon's AWS, Google Cloud or Microsoft Azure cloud computing. The network is still at a very early stage of development;
- Data shows that the network has seen more than 228% growth in trading volume against a pending FVM update, since the beginning of March. More than 50,000 viewers are following the network's live implementation event.Data from Defillam shows that Filecoin's TVL (total deposited value on the network) increased by more than 20% between 12 March and 13 March.
Filecoin, D1 interval. The price is climbing around the local peaks from the end of February. The key resistance zone appears to be between $8 and $12 and is defined by previous price reactions, including peaks from the summer of 2022. If the resistance is overcome and the price of BTC rises, a path to as high as $26 i.e. the March 2023 peaks could be opened for Filecoin. Source; xStation5
