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After a stressful time in 2022, Filecoin (FIL) made impressive gains in 2023 as the token surged 25%, reshaping the landscape for Filecoin mining. One of the reasons for this continued rise of Filecoin can be the buzz behind the launch of Filecoin smart contracts that could drive Filecoin’s mainstream adoption. There are other reasons why Filecoin experienced impressive growth in 2023 that could have a snowballing effect in the next year.
In this article, we will explore why Filecoin is one of the most promising crypto for traders in 2024 by highlighting certain key elements that contribute to the token’s success and growth.
The Phenomenal Filecoin in 2023
In 2023, Filecoin launched FVM (Filecoin Virtual Machine) on its mainnet to bring user programmability and smart contracts to the Filecoin community. Before its release, FIL organized an event called The Countdown to FVM that featured exclusive content on FVM and builders’ showcase.
Nevertheless, the excitement did not permeate via other networks, and the transaction fees sharply declined later, discouraging new validators from joining the network. Alternatively, revenue from the Filecoin token holders plummeted by almost 67% after striking its peak earlier this year.
Filecoin gained its smart contract capabilities earlier this year with the FVM release on the network. This development increased the utility of FIL tokens from being a mere decentralized public storage network to enabling developers to create decentralized applications on the network.
In terms of FIL price action in 2023, it is currently projecting a bullish rally. The year 2023 started with a positive sentiment, and the price jumped from $3.1 to $8.4 in just one month. Later, the coin witnessed profit booking, and the price went down. However, since last month, the token has been showing some bullish price action, with the current price trading around $4.27.
Factors Behind Filecoin’s Success
Filecoin is a peer-to-peer network service employing native cryptocurrency and blockchain to deliver its storage services. The Filecoin crypto, FIL, supports every transaction on the network and allows miners to earn FIL tokens by storing the files.
A single company does not control the pricing structure of FIL as it is an open network where all users can participate. Although this provides greater flexibility, it can be challenging for organizations within certain storage budgets. At the core of the Filecoin ecosystem, the token is designed to allow efficient use of storage services by developing a marketplace for any unused storage capacity.
This can be achieved through a blockchain network of storage providers who earn FIL tokens by providing storage space to the clients, who in turn pay miners in FIL to retrieve and store data. Filecoin uses a proof-of-spacetime and proof-of-replication consensus method to ensure secure data storage.
It is an essential component of the Web3 ecosystem since it offers a decentralized infrastructure for retrieving or storing data and allows the development of applications. The main role of Filecoin in Web3 is to make the decentralized internet more transparent and open to eliminate monopolistic control by large corporations.
The Future of Filecoin in 2024
Filecoin currently stands at the 30th position in the crypto market, with a market cap of $1,983,697,579. The price of an FIL token is $4.26, and the circulating supply is 465,178,102 FIL tokens. According to our Filecoin forecast, the minimum and maximum price of FIL is predicted to be between $5.70 and $8.20, making it a fairly good investment in 2024.
Currently, Filecoin has been trading at a moderate momentum, but the value may reflect a considerable recovery in the next bullish trend. However, pessimistic investors may find the digital asset standing firm on the ground as it may not reach the stars anytime soon.
Challenges and Consideration
2024 is vital for the entire crypto industry as the next Bitcoin halving event is scheduled. Suppose the community behind FIL makes the most of the year by benefiting from FIL community-building initiatives and developmental upgrades. In that case, the price of FIL tokens might propel to a high of $8.20.
However, various factors like negative criticisms, regulatory concerns, technological vulnerabilities, competition, and soaring inflation rates can never be ruled out. In those circumstances, the value of FIL may sink to the low of $5.70. That being said, the absence of any fulfilling event may limit the FIL price to an average level of $7.14 in 2024.
Conclusion
To summarize, various industries such as healthcare, finance, social networks, video streaming, and many more have benefited from Filecoin’s storage services. With Filecoin, users can tap into a variety of use cases that are capable of converting any application online into decentralized ecosystems.
With these developments, there is a great future for Filecoin investors. Investors can expect the bullish trend to continue in 2024 as additional Filecoin-powered financial services are launched and the adoption rate of Filecoin’s FIL tokens increases on a global level.
However, like any form of investment, it must be noted that the Filecoin price is highly dynamic and requires extensive research before making any investment decision.