Filecoin (FIL) Surges Ahead of FVM Launch
Filecoin (FIL) has seen a dramatic 31% increase in the past 24 hours, reaching $7.60 at the time of writing and climbing into the top 100 by market capitalization.
Filecoin (FIL) has been steadily reaching new highs throughout January 2023, with a notable surge on February 17, ahead of the launch of Filecoin Virtual Machine (FVM). FVM is a software that supports smart contracts, enabling developers to design decentralized applications on the Filecoin network.
Filecoin announced that it will launch smart contracts in Mar'23, making it a fully-fledged L1. FIL rose by 23% in 24 hours. There are currently 3,785 active miners on the Filecoin network, storing 18.767 EiB of information, and staking 134,023,969 FIL.
— Wu Blockchain (@WuBlockchain) February 17, 2023
The network first introduced FVM at the FIL Singapore conference in September 2022, with the official launch scheduled for March 23. Currently, there are 3,785 active miners on the Filecoin network, storing 18,767 EiB of data and staking 134,023,969 FIL.
According to announcements, FVM is compatible with the Ethereum Virtual Machine (EVM), allowing Filecoin to form flexible cross-chain bridges between networks. Many developers and users believe that EVM compatibility and integration with layer-2 blockchains will reduce gas fees and increase transaction speeds, potentially bolstering Filecoin's position in the DeFi community.
The addition of FVM will officially establish Filecoin as a layer-1 blockchain. In anticipation of the FVM launch, the price of FIL has risen from $5.38 to a peak of $7.90 on the morning of February 18.
FIL is currently trading around $7.58, marking a 32% increase over the past 24 hours. The coin ranks 25th in market capitalization with $2.95 billion and has a daily trading volume of $1.6 billion.
1-Hour Chart of FIL/USDT on Binance as of 09:05 AM, February 18, 2023
Filecoin is a platform designed and developed by Protocol Labs, allowing users to rent decentralized data storage. The project utilizes Proof-of-Storage and Proof-of-Replication consensus mechanisms to reward nodes that store and verify data.
Overall, Filecoin has seen limited progress beyond FVM, with recent developments including the integration of decentralized storage technology into the metaverse and partnerships with Harvard University, following its "hot" status in China in April 2021.
The development team has recently decided to cut 21% of its workforce as part of cost-cutting measures amid the ongoing economic downturn.
