Filecoin fundamentals may make it plausible for the digital currency to sustain the 9th largest crypto ranking as the project seeks to offer a highly sustainable and secure decentralized storage system.
Decentralized storage system Filecoin (FIL) is seeing the best of its days as its continuous growth has earned it a place as the 9th largest cryptocurrency by market capitalization. According to Coindesk, a major factor fueling the upsurge in the price of the asset is its addition to the Grayscale Trust back in March, through which it has been seeing a lot of institutional demands.
Per the data gleaned from the Bybt, a cryptocurrency derivatives analytics provider, the Grayscale Filecoin Trust recorded its largest inflow of 29,550 on Thursday, April 1, accounting for the bulk added to the Trust since it was launched on March 17th. The Filecoin Trust has a total of 45,500 FIL cryptocurrencies accumulated to date.
The institutional demand has fueled the attainment of a new all-time high price for FIL coins which is trading at $234.54, up 50.52% in the past 24 hours at the time of writing according to data obtained from CoinMarketCap. The coin has seen more than 162% growth in the past week and over 490% leap in the month-ago period, reaffirming the consistency of market players in getting it to this historic price level.
Amidst all the growth, Filecoin has valiantly displaced Litecoin (LTC) as the 9th largest cryptocurrency by market capitalization. Per market cap outlook, FIL coins is currently worth $14,845,450,976 while Litecoin’s is pegged at $13,219,975,189 at the time of writing.
Can Filecoin Fundamentals Help It Sustain Its 9th Largest Cryptocurrency Ranking?
Filecoin fundamentals may make it plausible for the digital currency to sustain the 9th largest crypto ranking as the project seeks to present to the world a highly sustainable and secure decentralized storage system. The operational model of Filecoin directly competes with centralized storage services providers including but not limited to Amazon Web Services (AWS) from the tech giant Amazon.com Inc (NASDAQ: AMZN), and Cloudflare from Cloudflare Inc (NYSE: NET).
Founded by Juan Benet, the creator of the Interplanetary File System (IPFS), a peer-to-peer network for storing and sharing data in a distributed file system. The Filecoin technology and blockchain are based on both proof-of-replication and proof-of-spacetime models.
Per the operational dynamics, the Filecoin blockchain allows for the cryptographic creation of contracts through which users can pay FIL currency to miners in exchange for storing the specific file data that the client requests.
Though the journey to the top of the crypto ladder can be swift based on favorable market sentiments at a given point in time but maintaining the growth may take a while to be achieved. In the past weeks, Theta (THETA) surged to a similar position but soon fell off the cliff following the announcement of a delay in the launch of the network’s Mainnet 3.0.
The strength of Filecoin’s fundamentals will be tested out in the coming days as THETA, and other digital currencies including Chainlink (LINK) will also strive to regain their place amongst the top ten cryptocurrencies.
Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.