Category: Forex News

Filecoin (FIL) Price Explodes Higher as DeFi TVL Surges to Record High

Filecoin price continued its remarkable comeback as it joined the other cryptocurrencies in a strong comeback. FIL surged to $11, its highest point since August 22nd. It has soared by more than 280% from its lowest point in 2023, outperforming all traditional assets like stocks and commodities.

Filecoin DeFi TVL rises

Filecoin, the giant Web3 platform for storage, has performed well in this crypto bull run. This increase is mostly in line with the performance of other cryptocurrencies like Bitcoin, Ethereum, and Solana.

Bitcoin has jumped to $64,000 while Ethereum is nearing $3,500. In most periods, altcoins like Filecoin tend to do well when Bitcoin is in a strong rally.

The other reason why Filecoin is doing well is that its Decentralized Finance (DeFi) ecosystem is booming. Data compiled by DeFi Llama shows that the Total Value Locked (TVL) in the ecosystem has surged to over $580 million, a record high,

This surge is a notable one considering that Filecoin had no TVL a year ago. It started gaining share in the industry after unveiling the Filecoin Virtual Machine (FVM), which provides tools for developers to build.

Most of Filecoin’s assets are in liquid staking. GLIF has over $380 million while STFIL, SFT Protocol, Filet Finance, and MineFi have $92 million, $29 million, $20 million, and $19 million, respectively.

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These liquid staking platforms allow FIL holders to deposit tokens and then provide them with monthly returns. In Filecoin’s case, storage providers can also stake their tokens. GLIF has an APY of 8.23% and has already paid over $4 million in rewards.

Liquid staking has more advantages than traditional staking in that it allows uses to get cash advance on their vesting block rewards, It also has no due dates or early repayment fees.

Filecoin has also made moves to expand its service offerings. For example, in 2023, the developers launched Filecoin Web Services (FWS), a decentralized alternative to Amazon’s AWS and Microsoft Azure.

Filecoin price forecast

The daily chart shows that the FIL price has done well recently. It has surged from last year’s low of $2.69 to bout $11 today. Most recently, the token has surged above the crucial resistance level at $8, its highest point in January. Rising above that price was important because it invalidated the double-top pattern.

Filecoin price has surged above all moving averages, signalling that bulls are in control. Further, the MACD and the Relative Strength Index (RSI) have all continued rising. Therefore, at this stage, the path of the least resistance for the coin is bullish, with the next point to watch being at $15. The stop-loss of this trade will be at $9.50, the highest swing in February last year.

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Written by : Editorial team of BIPNs

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