- Our Filecoin price analysis will go into the main value proposition is focused on data storage and distribution, and its storage capacity recently crossed one exbibyte, or over 1B gigabytes
- Filecoin’s native token, FIL, launched on October 15, three years after it raised over $200M in its ICO, and investors ballooned the price to over $130
- Given its fledgling trading history, Filecoin has been making strategic partnerships to bolster its ecosystem and network capabilities
At the time of this writing, Filecoin (FIL) is trading at $29.75 USD with a market capitalization of $1,326,459,934 USD, currently ranking #22 on Coin Market Cap. FIL has performed well in the past few months, reaching its all-time high of $131.86 on October 15, when the mainnet launched. That price is the result of an ICO three years in the making, more on that later.
Filecoin is different from other cryptocurrencies because their value proposition is focused on decentralized data storage, giving people control over their data. Indeed, Filecoin’s economic model revolves around the idea of a marketplace for data. Users can sell storage space to others.
Still, data storage is just one of Filecoin’s offerings. Users can still buy, sell, and trade FIL tokens.
A History Lesson
Back in 2017, Filecoin raised $205M in an ICO, a milestone at the time. Since then, ~1000 developers across ~230 projects have been built atop Filecoin’s network. Filecoin has also been considerably popular in China. Eight out of ten miners on the testnet – released in December 2019 – were Chinese.
It might be difficult to tell whether the Chinese are attracted to Filecoin’s purported benefits or that they are simply attracted to crypto mining. China accounts for ~65% of computing power on Bitcoin. Still, Chinese companies have been talking about Filecoin since 2018.
Back in September, ~400 miners came together on Filecoin’s testnet and increased the network’s data capacity by 325+ pebibytes. Needless to say, that’s a lot of space; seven times the entire written works of mankind in all languages to be precise. Miners were rewarded with 3.5M FIL tokens.
Filecoin Price Analysis
Filecoin’s mainnet launched in October. Its price reflected three years of work, and the price shot up to over $130. Unsurprisingly, that price didn’t last long. FIL was trading at ~$45.17 by the following day, and ~$21.04 by October 23. It quickly rebounded to $34.76 just two days later.
Soon after launch, TRON founder Justin Sun accused Filecoin founders, namely Juan Benet, of pulling an exit scam by selling 1.5 million FIL tokens for $200 each, or $300M altogether, before FIL’s price dropped 70%. The accusations didn’t hold, though. Crypto Twitter called out Sun for his shady moves with both TRON and BitTorrent, the company Sun acquired back in 2018.
Besides, Juan Benet squashed Sun’s accusations with evidence of Sun’s machinations.
The general public opinion is that Filecoin’s fundamentals are strong. After all, its ICO was highly anticipated three years ago, reaching a record raise. And CoinList, one of the many exchanges that now list FIL, was specifically created to handle Filecoin’s ICO.
Since then, FIL has traded within the $30 range. The price had two small peaks of ~$33 in November but remains fairly consistent as we finish 2020. That’s to be expected, as Q4 is often a quiet period for the crypto markets.
Recent Strategic Partnerships
Given FIL’s short trading history, much of the excitement is happening behind the scenes. In November, Infrastructure providers Anchorage and Tokensoft collaborated to wrap FIL (wFIL) so it could be used on Ethereum. This move aims to enable DeFi products to be built using wFIL.
On the same day as that announcement, Filecoin announced that its storage space had reached over one exbibyte, or, over one billion gigabytes. Filecoin also announced a plan to launch an incubation hub in partnership with crypto exchange Huobi, supported by a $10M fund.
This strategic partnership will help develop Filecoin into a sustainable ecosystem, which includes incubation and investment for new projects, and community development. Indeed, if there’s one thing Filecoin has to offset FIL’s short trading history, it’s their dedicated community.
And Filecoin is engaging with their community through their blog. The cryptocurrency market has the difficult job in educating the masses about Web 3.0, the next era of our internet revolution. While we won’t dissect the nuances of Web 3.0, rest assured that one of its hallmark characteristics will be decentralization. Therefore, cryptocurrencies are in an advantageous spot.
Future Price Predictions
Investors generally have a bullish attitude towards FIL. Walletinvestor.com forecasts a $49.48 price in 2020, climbing to $142.70 by 2025.
Digitalcoinprice.com has a similar outlook. They believe FIL will reach $66.53 in 2020, over $100 in 2021, and almost $200 by 2025.
In the short term, Coincodex.com is largely bearish on FIL because it has failed to move beyond key resistance zones.
The reality is that forecasts for FIL will be difficult given its recent launch, and therefore, a lack of data. But it seems like crypto heads largely have faith in Filecoin’s mission and intrinsic value. If its ICO and launch is any indication of success, Filecoin will likely be a powerful position going forward.