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Filecoin (FIL) is a decentralized storage network and cryptocurrency backed by Google Ventures and Protocol Labs. It promises to bring a new level of efficiency, security, and availability to the world’s digital information. Since it was released in August 2020, Filecoin has seen an impressive rally in its price due to growing demand for efficient data storage solutions.
Even though it experienced severe corrections along with the rest of the crypto market over recent weeks, many experts believe that this drop may have been temporary. The question remains: will Filecoin prices go back up soon?
In this article we’ll be exploring what could potentially cause it to rise or fall again and make some predictions on whether we can expect FIL prices to stabilize or experience another hike soon.
Filecoin’s Recent Network Developments
The Filecoin Virtual Machine (FVM) has been officially launched this year, presenting a unique layer of storage utilization for the Filecoin network. This exciting development marks yet another milestone in the growth and expansion of the Filecoin ecosystem, with FVM providing an innovative way to create custom storage solutions tailored to an individual’s needs.
With FVM, developers have unprecedented control over their applications’ cloud-native data and increase efficiency and scalability within distributed web services via customizable smart contracts.
Factors Influencing FIL Price
The price of Filecoin is highly influenced by the same factors that affect other cryptocurrencies. Supply and demand are some of the most important market forces driving prices, as with any asset or commodity.
Market speculation and investor sentiment can also play a role in how much an individual coin is worth at any given time. With cryptocurrency being new, there is a lot less research and understanding available than with more established markets like stocks or commodities, so predicting its future performance can be difficult.
In addition to supply and demand trends, Bitcoin’s success has had an effect on many altcoins including Filecoin as well. If Bitcoin remains strong it could lead to increased interest in other coins like Filecoin which will further drive up prices in the short term but may not sustain them for long periods of time due to the relative illiquidity of such assets.
Current Filecoin Market Analysis
Today’s Filecoin price is $3.34, with a trading volume of $86,788,598 in the past 24 hours. Filecoin’s value has decreased by 0.31% today. It’s ranked #31 on CoinMarketCap and has a total market value of $1.48 billion. There are 449.15 million coins in circulation, and no set maximum supply is available.
On April 21, 2021, FIL’s value reached its highest ever at $237.62, up from its lowest ever of $19.95 on Dec. 30, 2020. There’s $114.87 million of FIL available, but the most there can ever be is $1.97 Billion.
The token has been in a significant bearish pressure since the last year and has been trading below its launch price of $11 continuously.
Can Filecoin go up in 2023?
According to our Filecoin Prediction for 2023, the price of Filecoin could be as low as $2.94 or as high as $7.01. Its cost might be around $4.97 on average. According to the Digital Coin Price predictions, the FIL price will range from $3.27 to $3.88 in October 2023, with an average expected value of around $3.58.
By December 2024, the forecasted price of Filecoin is $8.20, a significant increase. According to the technical indicators, the long-term market is bullishly inclined. Filecoin’s price volatility over the previous month was 6.26%, with 15 out of 30 days ending in positive values.
Crypto experts project Filecoin’s November 2023 price to be at an average of $3.77 after looking at its historical and 2023 price trends. They predict it could decrease to a low of $3.67 and possibly increase to a high of $3.86.
Based on historical trends, analysts estimate that Filecoin could trade for as little as $3.63 in 2024. With a potential peak price of $5.38 and a yearly average trading price of $7.12, it may go up in the future.
Conclusion
What will happen to the price of Filecoin (FIL) is uncertain. The cryptocurrency market is incredibly unpredictable and volatile. That implies that anything could happen in the future, regardless of how much study, analysis, or forecasting has been done on the project.
Investing in any highly speculative asset, such as FIL, is best done with a wait-and-see mentality. Before making any investment, investors should always conduct their due diligence and be aware of the risks involved.