Filecoin, which uses its FIL token, is trying to revolutionize cloud storage with blockchain to make it completely independent. In 2022, like many cryptocurrencies, it faced a lot of challenges due to frequent market crashes. But in 2023, it started to recover as more people began using its storage services, especially in the second quarter. The U.S. Securities and Exchange Commission (SEC) identified FIL as a potentially unregistered security, which negatively impacted its price because investors started looking for safer options. The situation worsened when the SEC took legal action against the Binance and Coinbase exchanges in early June, causing Filecoin’s value to drop even more. However, the overall market recovery helped FIL gain some momentum. Additionally, a court decision stating that Ripple’s XRP wasn’t a security as long as it was sold on exchanges had a positive effect on the cryptocurrency market, including FIL.
The Filecoin blockchain started in 2014 as a subsidiary of the InterPlanetary File System, a peer-to-peer storage network. It later branched out independently, conducting an initial coin offering (ICO) in 2017 that raised $205 million. The Filecoin mainnet, however, wasn’t launched until 2020. In March 2023, Filecoin introduced support for smart contracts and recently completed its Masterplan roadmap, establishing the network as a foundational “layer 0” for computational networks. Among ‘storage coins,’ Filecoin is the most prominent and recognized. The global demand for cloud storage is expected to increase, along with a growing trend towards decentralization. In this article, we’ll explore Filecoin’s current market status with in-depth technical analysis and future market performance from Filecoin price prediction.
Filecoin: A Quick Introduction
Cloud storage is a key concept in computing, allowing users to store data off their hard drives, potentially keeping their computers faster and less cluttered. It’s thought to be linked to blockchain technology and cryptocurrency, as blockchain offers a way to make transactions and store data collectively.
However, cloud storage isn’t without issues. A major concern is its centralized nature, which can be problematic for those who prefer decentralization. Filecoin aims to address these issues. Developed by Protocol Labs, Filecoin is a peer-to-peer network where users pay storage miners to keep their files secure over time. The Filecoin blockchain records these transactions, ensuring storage verification.
Users on Filecoin can choose from various storage miners, considering factors like cost, speed, security, and reliability. Every blockchain requires its cryptocurrency, and Filecoin has its own, called filecoin (FIL), used to compensate miners for providing storage.
As described in its whitepaper, Filecoin’s blockchain operates on a unique proof mechanism known as Proof-of-Spacetime. In this system, miners create blocks by storing data. Filecoin’s protocol offers a decentralized storage and retrieval service operated by independent storage providers. In this network: 1) clients pay for data storage and retrieval; 2) storage miners earn tokens through storage services; and 3) retrieval miners earn tokens by delivering data.
Filecoin: Proof-of-Spacetime
Filecoin employs a unique consensus method known as Proof-of-Spacetime, as detailed in its whitepaper. In this system, miners who store data are responsible for creating blocks. This design enables Filecoin to offer data storage and retrieval services in a decentralized way.
Clients using Filecoin pay for storing and accessing their data. Storage miners earn FIL, Filecoin’s native cryptocurrency, by providing storage space, while retrieval miners earn FIL by fetching data. Beyond rewarding miners, FIL can also be purchased, sold, and traded on various cryptocurrency exchanges.
In March 2023, Filecoin expanded its functionality by introducing the Filecoin Virtual Machine (FVM) to the network. This enhancement transformed Filecoin from solely a decentralized storage network with a payment system into a platform that enables developers to create decentralized applications (dApps) on top of it. Since the introduction of these smart contract capabilities, more than 2,500 smart contracts have been deployed, fueling the development of over 100 dApps within the Filecoin ecosystem.
The Filecoin network employs a modified version of proof-of-stake known as proof-of-replication to ensure the integrity of its service providers and their commitments. Proof-of-replication consists of two components:
- Proof-of-Storage: This requires Storage Providers to demonstrate that they have stored the specified number of data copies as they initially promised.
- Proof-of-Spacetime: In this aspect, Storage Providers must validate that they have maintained the stored data for the agreed-upon duration.
Advantages & Disadvantages
Messari’s recent quarterly report on Filecoin highlighted key points:
Advantages:
- Filecoin has attracted users through its Filecoin Plus program.
- User-friendly interfaces facilitate ease of use.
- It is actively building a community of storage users and providers.
Disadvantages:
- Filecoin is under SEC investigation regarding FIL’s security status.
- Rewards for users have decreased, possibly discouraging usage.
- Service charges on Filecoin have increased.
In Q2 2023, Filecoin showed changes in revenue, data capacity, and storage utilization compared to previous periods.
Filecoin Price Prediction: Price History
Let’s examine the price history of FIL. While past performance isn’t indicative of future results, it provides valuable context for making Filecoin price predictions.
Filecoin initially entered the market in late 2017 at around $11. It experienced a cryptocurrency market bubble, reaching over $25 in January 2018. However, the bubble burst, and by the summer of that year, FIL dropped below $5. For the next couple of years, its price remained around $5 during the “crypto winter.”
In October 2020, the Filecoin mainnet launch marked a turning point, and FIL closed the year at $24.35. Early 2021 was a bullish period for crypto, and FIL benefited from Chinese company Xinyuan Technology’s investment, leading to a more than 400% price increase in March. The peak came on April 1, with an all-time high of $237.24. Subsequently, the price declined, first gradually and then rapidly, reaching below $50 in July. Although there was a recovery, surpassing $100 in September, FIL eventually closed the year at $34.27, up about 45% year-on-year but significantly lower than the peak in April.
While 2021 proved to be a positive year for both the cryptocurrency sector and Filecoin, 2022 brought disaster to FIL and the entire industry. Despite reaching a high of $38.31 on January 5th, Filecoin’s value steadily declined. It hit a low of $16.56 on March 15th. A brief rally saw it peak at $27.31 on March 31st, but a slump in April turned into a full-blown crash in May. The market collapse, triggered by the depegging of the UST stablecoin and the collapse of the associated LUNA cryptocurrency, caused FIL to drop below $10.
June brought even more challenges as news of the Celsius Network (CEL) crypto lending platform canceling withdrawals confirmed a bear market. FIL reached a low of $4.82 on June 18th. Although there was a modest recovery, briefly surpassing $10 in late July and early August, it later stabilized between $5 and $6 for several months.
In November, the FTX (FTT) exchange’s collapse triggered another cryptocurrency crash. Amid the turmoil, FIL dropped to a low of $2.68 on December 16th before making a slight recovery to close the year at $3.01. This represented a decline of over 90% throughout the year.
In 2023, there have been some positive developments for both Filecoin and the cryptocurrency market. The coin experienced a rally, closing January at $5.23. Furthermore, the news of Filecoin developing its own virtual machine, a system enabling the creation of smart contracts (self-executing computer programs based on predefined conditions), contributed to a price boost in February. On February 19th, it reached a value of $9.40, marking its highest price in over six months.
However, the situation took a downturn. After the SEC informed Grayscale, an investment company that held a FIL trust, on May 17th that Filecoin was considered an unregistered security, its value dropped to approximately $4.55. Initially, it seemed like the market was dismissing these concerns, but the legal actions against Binance and Coinbase had a negative impact. By June 12th, FIL had fallen to $2.88.
There was a gradual recovery over the subsequent month, and on July 17, 2023, Filecoin was valued at around $4.41. In recent weeks of November, Filecoin made a bullish surge and reached a high of over $5.5.
Filecoin Price Prediction: Technical Analysis
Recently, the FIL coin price experienced intense bullish sentiment, which has triggered buyers near the immediate resistance levels. The price has made a breakout momentum above $4 as the BTC price touched a high of $38K. However, after surging above the $5.6-mark, Filecoin’s price sparked an intense selling momentum and declined heavily. The price has been facing minor rejections recently as it lost buyers’ confidence. A thorough technical analysis of the Filecoin token price reveals bullish indicators, which may soon send the price to new highs.
According to Coinmarketcap, the Filecoin token price is currently trading at $4.4, reflecting a decrease of 2.2% in the last 24 hours. Our technical evaluation of the Filecoin price indicates that the current bullish momentum may soon fade as bears are attempting to reverse the trend from the upcoming resistance at $4.8; however, bulls are trying to prevent the price from dropping below the immediate support level of $4. Examining the daily price chart, the FIL coin price has found support near the 23.6% Fib level, from which the price gained bullish momentum and attempted to break above multiple Fib channels. As FIL price continues to trade above the EMA200, buyers are gaining confidence to open further long positions and send the price to test its upcoming resistance. The Balance of Power (BoP) indicator is currently trading in a negative region zone at 0.17 as sellers are increasing their domination on the price chart.
To thoroughly analyze the price of a Filecoin token, it is crucial to take a look at the RSI-14 indicator. The RSI indicator recently experienced a decline as the Filecoin price failed to hold buyers’ demand near resistance channels. The trend line is currently hovering below the midline as it trades at level 39, hinting that further downward correction is on the horizon. It is anticipated that the Filecoin price will soon attempt to break above its immediate Fibonacci level to achieve its short-term bullish goals of around $5.7. If bears fail to plunge below the current 0.038 Fibonacci region, an upward trend might be on the horizon.
As the SMA-14 continues its swing by trading at 44, it trades slightly above the RSI line, potentially holding promises about the coin’s upward movement on the price chart. If FIL’s price makes a bullish reversal above $5.7, it can pave the way to resistance at $6.4. A breakout above will drive the coin’s price toward the upper limit of the Bollinger band at $7.6 and then to $9.5.
Conversely, if Filecoin fails to hold above the critical support region of $4.1, a sudden collapse may occur, resulting in further price declines and causing the coin’s price to trade near the Bollinger Band’s lower limit of $3.5. If the price fails to continue a trade above, it may trigger a more significant bearish downtrend to $2.9.
Filecoin Price Prediction By Blockchain Reporter
Filecoin Price Prediction 2023
The price of Filecoin is predicted to reach a minimum level of $4.67 in 2023. It can reach a maximum level of $5.08 with an average price of $4.90 throughout the year.
Filecoin Price Prediction 2024
In 2024, 1 Filecoin is expected to reach a minimum level of $6.86. The FIL price can reach a maximum level of $8.20, with an average price of $7.05 throughout the year.
FIL Price Forecast for 2025
In 2025, the price of Filecoin is expected to reach a minimum value of $9.87. The FIL price can reach a maximum value of $11.86 with an average value of $10.15.
Filecoin (FIL) Price Prediction 2026
In 2026, the price of Filecoin is forecasted to be around a minimum value of $13.81. The Filecoin price can reach a maximum of $17.00 with an average trading value of $14.32.
Filecoin Price Prediction 2027
In 2027, the price of Filecoin is predicted to reach a minimum level of $19.06. The FIL price can reach a maximum level of $23.44 with an average trading price of $19.63.
Filecoin Price Prediction 2028
In 2028, Filecoin’s price is forecast to reach the lowest possible level of $26.72. The FIL price could reach a maximum level of $32.45 with an average forecast price of $27.70.
Filecoin (FIL) Price Prediction 2029
The price of Filecoin is predicted to reach a minimum value of $37.98 in 2029. It could reach a maximum value of $47.31 with an average trading price of $39.09 throughout the year.
Filecoin Price Forecast 2030
In 2030, the price of Filecoin is predicted to reach a minimum level of $54.14. The FIL price can reach a maximum level of $64.50 with an average trading price of $55.70.
Filecoin (FIL) Price Prediction 2031
In 2031, the price of Filecoin is predicted to reach a minimum value of $77.36. It could reach a maximum value of $95.86 with an average trading price of $80.15.
Filecoin Price Prediction 2032
In 2032, Filecoin’s price is forecast to reach the lowest possible level of $119.04. The FIL price could reach a maximum level of $135.66 with an average forecast price of $122.24.
Filecoin Price Target: By Experts
DigitalCoinPrice forecasts that by 2023, Filecoin could reach a maximum of $10.14, with an average price of around $9.94. The expected minimum price is around $4.10.
The projection suggests that FIL will see a steady increase over time, with an anticipated maximum of $24.78 by 2028. During this period, the coin’s minimum and average prices are estimated to be $21.97 and $23.27, respectively.
Looking further ahead to 2031, Filecoin is expected to achieve a maximum price of $66.17, while its average trading price could hover around $65.24. The minimum trading price for the coin during this time is projected to be $63.62.
Coincodex’s current Filecoin price prediction suggests that the price of Filecoin is expected to decrease by -0.10%, reaching $4.40 by December 5, 2023. Their technical indicators indicate a Bearish current sentiment, with the Fear & Greed Index showing 74 (Greed). In the past 30 days, Filecoin has experienced 19/30 (63%) green days and 9.93% price volatility.
According to Coincodex’s forecast, it is currently not an advisable time to purchase Filecoin. Considering the historical price trends of Filecoin and BTC halving cycles, Coincodex estimates the lowest price for Filecoin in 2024 to be around $4.19. Conversely, they predict that Filecoin’s price could soar to as high as $34.51 in the following year.
Is Filecoin A Good Investment? When To Buy?
The FIL token, serving as a utility token, is integral to the functioning of its network. The network’s popularity and the quality of services offered significantly impact the Filecoin token’s price. This factor is paramount when forecasting FIL’s price. The creators of Filecoin assert that with widespread adoption and its open market approach, Filecoin could emerge as the fastest and most cost-effective method for internet data storage.
The quarterly State of Filecoin reports are invaluable resources, offering comprehensive insights into the ecosystem, thereby aiding in more accurate and data-driven Filecoin price predictions. The 2023 Q2 report indicates positive growth trends for Filecoin, especially in its core service of persistent decentralized storage.
In May 2023, the SEC classified Filecoin’s FIL token as a security in a communication to Grayscale, known for creating investment trusts focused on cryptocurrencies. This development has caused caution among some investors regarding holding or purchasing Filecoin. It also raises the possibility of Filecoin being delisted from exchanges in the future, although this has not occurred as of now.
Despite no immediate indications of Filecoin experiencing a rapid surge in value, its robust utility platform and distinctive proposition in decentralized storage continue to appeal to a diverse range of users. However, an investment of around $3.5 might turn profitable in the long term.
Conclusion
The introduction of smart contract capabilities has enhanced Filecoin’s utility spectrum. Filecoin’s FVM, developed on the Ethereum Virtual Machine (EVM) framework, enables decentralized applications (dApps) from other EVM-compatible networks to seamlessly integrate with Filecoin. This compatibility facilitates easy network bridging, a feature already utilized by platforms like Axelar and Celer. This expansion in utility, coupled with its status as a leading storage coin, presents a strong argument for Filecoin’s prospective success.
The development team of Filecoin has completed their development roadmap, laying a robust groundwork for the coin’s future prospects. Filecoin has consistently been a popular choice in the storage coin market. However, the question remains: does this popularity position Filecoin as one of the top coins to invest in for 2023 and 2024?
It is advised to do your own research and conduct expert opinions before investing in volatile crypto assets.
Source: https://blockchainreporter.net/filecoin-price-prediction/