Amid the current rebound by most cryptocurrencies like Ethereum Classic, Filecoin (FIL) has become an attractive investment opportunity for most investors, especially since its current price is affordable.
We have produced several other cryptocurrency price predictions, including Cardano price prediction to help investors and traders understand the cryptocurrency market outlook, and here is a price forecast of Filecoin to help traders, as well as investors looking to buy it, understand what to expect in the future Filecoin price movements.
Filecoin had a very productive year in 2021. However, 2022 and beyond are set to be better. Projects like Filecoin Energy Dashboard and Filecoin Community Roadmap highlight the progress made in 2021, and proposed developments provide insight into how successful Filecoin will be in the future.
Filecoin Partnerships
Filecoin got into many partnerships in 2021. One such partnership is metaverse. Metaverse is a virtual AI space powered by Web 3.0. They’ve helped build cutting-edge virtual human engines; virtual celebrities buy partnering w/ Gaming, GameFi & #NFT ecosystem projects.
Filecoin Latest Developments
One of the latest developments in Filecoin is Filecoin Plus. Filecoin Plus is a storage platform that can facilitate deals between verified clients. Filecoin Plus introduced a layer of social trust to the network on 02nd June 2022.
Proposed Developments
One proposed development is Inflow music, released in February 2022. Inflow enables musicians to monetize their songs by sharing them with their fans. This social token platform lets musicians earn WITH the support of their community!
What is Filecoin (FIL)?
FIL cryptocurrency is the native cryptocurrency of the Filecoin blockchain.
Filecoin (FIL) facilitates data storage, on-exchange token trading, and file retrieval within the Filecoin blockchain ecosystem.
Filecoin does not have a total maximum supply since miners actively add new coins into the market every time.
For example, in the fall of 2020, 3.5 million FIL tokens were released to the Filecoin miners who participated in the so-called “Space Race” testnet phase that intended to increase the capacity of data handled by the Filecoin network by about 325 pebibytes.
What is the Filecoin blockchain?
Filecoin blockchain is an open-source distributed cloud (off-site) storage platform that participants can store important information.
The project was first conceptualized in 2014 as a peer-to-peer file storage network, an Interplanetary File System (IPFS)
The project’s mainnet was launched in October 2020 after conducting an Initial Coin Offering that raised $205 million in 2017.
The Filecoin blockchain records information sent to it by its participants, and the records can be retrieved in the future but cannot be erased since they become part of the blockchain network.
The blockchain uses the proof-of-spacetime and the proof-of-replication consensus mechanism in validating new blocks. The proof-of-replication helps ensure that the same data is not replicated in the network, while the proof-of-spacetime allows storage of information for a given amount of time.
The Filecoin ecosystem has two types of miners; the retrieval miners and the storage miner.
The retrieval miner nodes in the Filecoin blockchain network compete to serve users (clients) with any requested data as quickly as possible. In a nutshell, they retrieve the stored information and avail it to any person who demands to view the data.
In exchange for retrieving the stored information, the retrieval miners are rewarded with FIL coins as fees. This reward encourages more nodes to want to participate in the mining.
On the other hand, the storage miners provide storage space to users for up to a specific time. Therefore, they are in constant competition to land contracts to offer storage to people needing storage space.
Once a storage miner strikes a deal with a user to offer the storage space, the miner holds the client’s data and seals it. In exchange for providing clients with storage space for their information, the storage miners are rewarded in FIL fees.
The storage miners are the ones responsible for mining new Filecoin blocks. And they, in return, earn block rewards for mining the new blocks.
How does the Filecoin network work?
Unlike centralized cloud storage solutions like Cloudflare or Amazon (companies with central command centers), Filecoin offers decentralized cloud storage. Therefore, data or information stored in the Filecoin blockchain is more easily retrievable and, at the same time, hard to censor.
By being decentralized, Filecoin allows participants to be the custodians of their data, and it is easily accessible to anyone who can access the internet throughout the world.
Who is Filecoin’s founder?
Filecoin network was founded by Juan Benet, an American computer scientist responsible for creating the Interplanetary File System (IPFS).
Benet is also the founder of Protocol Labs, which he founded in 2014.
Filecoin FIL price history
Filecoin (FIL) started trading in 2017 December 2017, a short period after conducting its ICO. The trading started long before the Filecoin mainnet was released.
Between December 2017 and May 2020, FIL traded below $30. Then, starting mid-May, the Filecoin price started rising, and the bull trend continued until 01st April 2021, when it hit its highest price of $237.24.
After hitting its all-time high in mid-May 2021, Filecoin took a bearish turn, which continued until mid-July when the market turned bullish again. It is important to note that the Filecoin price remained above its beginning price even during the past bearish trend.
Filecoin price data presented by CoingeckoGoing by the above table from Coingecko, it is evident that the FIL coin has been on a bearish momentum over the last 30 days despite the mass adoption of Bitcoin and other cryptocurrencies as well. Institutional investors are also attracted to the crypto industry as seen from the significant increase in adoption rate.
Going by the above table from Coingecko, it is evident that the FIL coin has been on a bullish momentum over the last 30 days due to the mass adoption of Bitcoin and other cryptocurrencies. Institutional investors are also attracted to the crypto industry, as seen from the significant increase in the adoption rate.
Filecoin technical analysis
Unable to go past the 87 USD resistance level, the Filecoin price dropped down to the support level at 55 USD.
In the 4-hour price chart, the cryptocurrency is trading above the 50-day Moving Average and the 100-day Moving Average. This makes the price momentum of Filecoin in the next few days quite critical for FIL’S price. The current circulating supply is at 111,591,681 FIL.
In the past month, we have seen quite a bearish price scenario for Filecoin (FIL) price as the price of Filcoin dropped by more than 6% on 21st September, 15.2% on 24th September, and by 7.67% on 26th September. The month of September has been quite bearish for all cryptocurrencies. But, the month ended with a price surge of 19%.
And although the values of the resistance and support levels differ by a small margin, the Walletinvestor website reflects the same in its Filecoin technical analysis.
Filecoin price prediction by Wallet Investor
Filecoin price prediction by DigitalCoinPrice
Filecoin price prediction by TradingBeasts
Should you invest in Filecoin (FIL)?
According to Walletinvestor.com, FIL is considered a green coin, and the Filecoin forecast earnings are predicted to keep growing up to 2026, based on the growing need by people worldwide to get an online storage space where they can store their information.
Although Filecoin’s current price is still way smaller than Bitcoin’s price, which is currently the most valued cryptocurrency, Filecoin has shown that it can be a profitable investment in the long term.
Where Can You Buy Filecoin (FIL)?
Suppose you are looking to buy Filecoin (FIL). In that case, there are several exchanges where you can do that, including Kraken crypto exchange, Gemini decentralized crypto exchange, and Huobi crypto exchange. You can exchange crypto here daily.
Conclusion
Going by the above Filecoin forecast based on the USD predictions, FIL has excellent prospects of continuing its current bullish trend.
Additionally, the Filecoin blockchain network has a great potential for growth since it aims at solving one of the world’s perennial problems of file storage. By offering a decentralized data storage solution, people worldwide can easily store their data online without relinquishing the ownership of the data to a third party. In a nutshell, Filecoin participants retain data ownership.
At the same time, the FIL coin price prediction shows it can be a good investment opportunity for those looking for a cryptocurrency to invest in. If one bought the Filecoin (FIL) today, they would almost double their investment in a year for every Filecoin coin they purchase, depending on the above Filecoin price forecast.
If one bought 100 five coins at the current averaged price of $83.4, and the above FIL prediction is maintained, he would at least double his investment according to our long-term forecasts. Investing in Filecoin is one of the wisest investment decisions, but you need to do your research too.
The beauty of it is that Filecoin does not have a high price, meaning anyone can own one Filecoin coin contrary to the likes of Bitcoin. Even after 2022, the price of Filecoin will still be easily affordable to many if the above Filecoin price forecast holds.
Although the Filecoin price forecast shows a promising future ahead, one should be alive to the fact that the cryptocurrency market is highly volatile, and large crypto market swings do occur in fractions of seconds. Therefore, they should seek investment advice before deciding to invest in the Filecoin blockchain technology and its native cryptocurrency, FIL.
Source: https://www.cryptopolitan.com/filecoin-price-prediction/