Jumat, 26 Maret 2021

How Filecoin is up 50% in a week and could take more profits

After a week of significant gains, Filecoin (FIL) is shaping up to become one of the biggest earning cryptocurrencies of the month. Journalist Colin Wu has recorded increasing interest in the cryptocurrency and its file-sharing platform:

Filecoin surpassed $100, benefiting a large number of Chinese miners and investors. Reasons: the first investor token will be released over, Coinbase launched new storage tokens, the dual mining test of Filecoin and LPT started, the cooperation between Filecoin and LINK, etc. (…) A lot of Chinese funds are entering this industry.

Grayscale announcement and Chainlink’s partnership

With an annualized fee of 2.5% and $1.3 million in assets under management, investment firm Grayscale announced its Filecoin-based trust. The firm’s product will hold 16,000 outstanding shares that will be worth 0.99 FIL per share.

Another announcement around Filecoin that has positively impacted its price was consolidated with Chainlink. The cooperation will allow Filecoin’s integration with Chainlink’s oracle service to form “a bi-directional connection”:

As a result, smart contract developers will have a full Web 3.0 infrastructure stack including blockchains for on-chain logic and state changes, Chainlink oracles for off-chain communication and computation, and Filecoin for decentralized storage and data solutions.

In Grayscale’s latest report, the firm reported $40.3 billion in assets under management. The Grayscale Bitcoin Trust (GBTC) continues as the largest product with $34 billion of that total, followed by the Grayscale Ethereum Trust (GETH) with $5 billion.

Filecoin has managed to make significant gains, as mentioned, over the past week with a 27% rise to stand at an all-time high of $115. On the weekly and monthly charts, FIL shows gains of 177.1% and 229% respectively.

Filecoin FIL
Filecoin with strong upside momentum. Source: FILEUSDT Tradingview

The partnerships that have merged on Filecoin’s platform have given it the momentum to defy the downtrend negatively affecting Bitcoin’s price. Investors’ confidence in China and more buying pressure from Grayscale’s product might continue to push FIL’s price to new highs.



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