Can Filecoin [FIL] Sustain Its performance Before FVM Mainnet Launch?

Mar. 7, 2023
Can Filecoin [FIL] Sustain Its performance Before FVM Mainnet Launch?

The decentralized storage system Filecoin [FIL] has seen an increase in income owing to the engagement of storage providers and consumers over the last year. The active participation of these stakeholders suggested that both demand and supply increased across the board.

According to Messari, the Filecoin supply-side and protocol income contributed significantly to the network’s KPIs. Active storage deals and capacity expansion resulted in Filecoin’s storage growing by 1755.7% YoY, per crypto-data library data.

Source: Messari

This increase meant that consumers now had more storage capacity for data, making it more accessible and trickier to filter. Will the project, however, achieve this milestone as the Filecoin Virtual Machine (FVM) Mainnet launch approaches?

Filecoin aims to establish a smart contract runtime environment on its network through the FVM update. This implies that users can participate in an open-data economy while Filecoin becomes fully Ethereum [ETH] Virtual Machine (EVM) compliant.

As a result, ERC-20 tokens would be launched directly on the Filecoin network. Regarding storage, the FVM would give long-term storage proofs so that providers could duplicate and rectify blockchain flaws.

The Rise and Fall Of Filecoin’s Social Dominance

Despite the promise of improved storage performance, the Filecoin ecosystem has yet to reach its peak. According to the Santiments Statistics, the weighted sentiment was -0.335 at the time of writing.

The on-chain analytic engine used most messages and the unique social volume condition to understand this statistic. The fall demonstrated that Filecoin had received more negative attention than usual.

Source: Santiment

Therefore, the project’s social dominance peaked between March 1 and 4, despite having decreased to 0.162% at the time of publication. The trend of this measure displays the proportion of attention an asset receives among the top 100 cryptocurrencies by market capitalization. According to the previous discovery, FIL has no significant market share.

Meanwhile, FIL demonstrated what the FVM might accomplish on March 4 at the Ethereum Denver event. Per the project, the Mainnet launch will strengthen Filecoin’s position as the leading L1 with access to the open data ecosystem.

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Colin Evra, the Interplanetary File System (IPFS) Head at Filecoin, stated, The FVM launch is the first stage in the Filecoin master plan, introducing smart contracts and user programmability to the open data market.

Rida Fatima

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An ardent wordsmith with a rich five-year background in delving into the realms of finance and cryptocurrencies. Alongside curating captivating blogs, Unique's talents extend to crafting imaginative and engaging content.