The native tokens of shared storage protocols have seen an impressive surge over the past week, with Filecoin’s FIL token leading the charge. FIL has risen an impressive 62% from $5 to $8.10 in the past seven days, outperforming both Bitcoin and Ethereum which have risen 10% and 7%, respectively. Analysts attribute the surge to the increased usage of the platforms, demonstrating the potential of decentralized storage networks.
Filecoin (FIL) has seen a jump in its price as the Filecoin Virtual Machine (FVM) is set to launch in March. The FVM will create a runtime environment for smart contracts, enabling new applications and increased usage. Protocol Labs, the company behind Filecoin, has stated that the FVM will allow users to create perpetual storage contracts, on-chain cloud solutions, data DAOs, and DeFi contracts. This news has caused a surge in FIL’s price, as investors anticipate the potential of the FVM. With the launch of the FVM, Filecoin is set to become a major player in the smart contract and DeFi space.
The computing and storage networks market has seen a 16% increase in the past week, with Storj (STORJ) and Siacoin (SC) leading the way. The CoinDesk Computing Index, which measures the market capitalization weighted performance of computing protocols, has also seen a 16% increase. Decentralized storage is becoming an increasingly attractive option for businesses looking for cost-effective alternatives to Amazon Simple Storage Service (S3). This is due to the competitive pricing of decentralized storage compared to S3. As the decentralized storage market continues to grow, it is likely that more businesses will take advantage of the cost savings offered by these networks.
Bitcoin (BTC) and Ethereum (ETH) prices dropped on Tuesday, with BTC trading at around $24,273, down 2.2%, and ETH trading at $1,647, off 3.5%. According to analysts from crypto exchange Bitfinex, the recent rally of BTC to over $25,000 was driven by both over-leveraged long positions and liquidating over-eager shorts. Long positions are held by investors who believe an asset will increase in value, while short positions are held by those who believe an asset will decrease in value. The crypto market is volatile, and investors should be aware of the risks associated with trading digital assets.
Traders who bet on Bitcoin price increases and decreases have liquidated a combined total of $309 million in the past seven days, according to crypto data provider Coinglass. Bitfinex’s analysts have commented that this type of price action usually results in a range formation, and suggest that traders should scale out of positions partially and wait for the range to form without a strong directional bias. This could be a good strategy for traders who are looking to make profits from Bitcoin’s volatile price movements without taking on too much risk.
