Filecoin price hits 6-month high after 26% gain

  • Filecoin (FIL) rose amid news of upcoming network development.
  • FIL token price hits all-time high of $7.89 on Coinbase.
  • According to Friday’s news release, the Filecoin Virtual Machine (FVM) will launch on March 1, 2023.

Filecoin surged to its highest price level since Aug. 18, 2022 on Friday, sending the native FIL token to a high of $7.89 on the day and leading major cryptocurrency exchange Coinbase up 26%.

Gains in decentralized storage networks came after a recovery that started with a 5% rise on Tuesday, February 14th. Prior to that, a reversal in market sentiment saw FIL/USD fall nearly 13% on Feb. 9, with the value of the token he closing at $4.78.

We can’t predict Filecoin’s price with certainty, but let’s take a look at what likely catalyzed today’s stellar move.

What’s Behind Today’s Filecoin Price Surge?

Filecoin’s price has actually moved up significantly over the past two days, breaking above the major resistance of $6.00.

Filecoin price hits $7.89 all-time high on Coinbse. sauce: TradingView

According to CoinGecko data, FIL surged 55% over the past week, and with a 340% surge in 24-hour trading volume today, there appears to be some serious buying power behind the price surge.

The main trigger for today’s rally seems to have been the news that the Filecoin Virtual Machine will go live on March 1st.

Advantages of FVM over the Filecoin network

According to the Filecoin developer team, the launch of FVM will usher in a new era for the Filecoin blockchain.

Specifically, in Layer 1 networks, we see sophisticated systems with smart contracts and programmability. FVM also comes with greater scalability and much lower fees for users who want to interact with decentralized applications (dApps).

The primary use cases set to drive more traffic for the Filecoin blockchain and pave the way for more adoption are perpetual storage, streamlined access to decentralized finance (DeFi) and DataDAO. The Filecoin virtual machine is interoperable with the Ethereum virtual machine.

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