Filecoin Surges 40% In 48-Hours, What’s Behind The Rally?

Filecoin surges 40% in the past 48-hours and it was likely catalyzed by two factors so let’s take a look at our latest altcoin news today.

FIL the native token of Filecoin surges 40% in the past 48 hours spiking to $75 across major exchanges and it even reached its highest point since 2020. FIL is the 22^nd largest cryptocurrency with a market cap of over $4 billion but its circulating supply is set at 58 million or about 3% of the maximum of two billion. There are two reasons for the uptrend like the fundamentals such as the growth of the storage capacity and the transaction volume as well as the interest from the investors which happened after Grayscale added FIL to its list of supported coins.

ANNOUNCEMENT: 5 new products have been added to the @Grayscale line up!

Basic Attention Token $BAT
Chainlink $LINK
Decentraland $MANA
Filecoin $FIL
Livepeer $LPT

Interested? https://t.co/YfK2YUKgCj pic.twitter.com/jLqDph4MEH

— Michael Sonnenshein (@Sonnenshein) March 17, 2021

Cameron Winklevoss who is the co-founder of Gemini showed more optimism towards FIL and its recent growth. A few hours after his statement, Grayscale CEO Michael Sonnenshein announced the addition of FIL to Grayscale’s investment products list. Typically the growth rate of the blockchain protocol can be analyzed with three metrics like mining activity, transaction volume, and developer activity. The developer activity of the blockcahin network is crucial for long-term growth and overall investor confidence because the blockchain is a computing network and a digital ledger at its core.

The mining activity of the blockchain network shows the confidence of the miners and the level of computing power behind the protocol. The transaction volume of the blockchain network shows the level of user activity which only outlines the adoption of the protocol. Filecoin saw some solid growth on these metrics and Winklevoss noted:

“The amount of network storage power, active miners, and Github contributors continues to grow on the Filecoin $FIL network. Not surprised to see price rocketing.”

In the meantime, the demand for scalable blockchain with larger capacity increased because of the high fees on ETH and the increasing interest in Layer-two technologies. The use case is recognized by investors so the fast pace of FIL adoption and its growing market cap contributing to Graysacle’s decision to add the coin to the lineup. Filecoin differs from other protocols because it is a peer-to-peer network designed for file storage with built-in economic incentives to make sure that the files are stored over time.