Filecoin, the world's leading distributed storage project, will cut production in October this year, while FIL has risen by 65% ​​in the past 30 days, hitting the highest price since June 8.

Filecoin has made frequent moves recently. Since it announced the establishment of a partnership with the Chainlink oracle protocol on August 6, it has successively established cooperation with Near, Mask Network and Polygon. Filecoin claims to speed up the development of hybrid smart contracts, run code on the blockchain, and manage the data calculation process off the chain.

In April of this year, FIL hit an all-time high of $235, but it was clear that this trend ceased to exist as the broader market subsequently fell. Although the current price of FIL is only one-third of the highest price, the gradual upward trend in the past two months seems to indicate the return of the rebound trend. What caused the rise of FIL in these two months?

We all know that Filecoin is a decentralized cloud-based data storage network that allows its users to earn rewards by selling excess storage on the open-source platform, while built-in economic incentives ensure that files are kept secure over time. storage.

Completely different from mainstream currencies such as BTC and ETH that drive out miners, Filecoin chose a completely different track. Driven by miners around the world, the storage of the entire FIL network has exceeded 2.5 EiB in February, and as the effective computing power of the entire network grows, positive comments from the industry are also increasing.

“Network storage capacity, active miners, and the number of Github contributors continue to grow on the $FIL network. Not surprised to see price spikes,” Cameron Winklevoss, co-founder of Gemini, tweeted in March.

On March 17, Grayscale Investments, the digital currency asset management company behind GBTC Trust, announced the launch of the Filecoin investment tool.

On March 25, the Filecoin Ecosystem Fund, backed by large Chinese investment groups such as Fenbushi Capital, SNZ Capital, and Neo’s EcoFund, was announced with a value of $23 million.

On March 31, Qtum founder Patrick Dai stated that the protocol is working to enable smart contracts for Filecoin through the Qtum network.

On April 15, Filecoin changed its supply economics, reducing its daily issuance from 648,000 FIL per day to 365,000. The FIL economic model has determined that miners will become a stable buyer, and the sharp reduction in daily output has made scarcity more prominent.

In addition, the data shows that FIL-related retail derivatives trading activities are also growing.

According to the data collected on Bybt, from August 10 to August 17, the financing rate of FIL on CEX such as Binance, Bybit and Okex soared, reaching an average of 0.08%. This figure equates to 1.7% on a weekly basis, which indicates increased leverage activity by bulls. And after a few days of retreating, the indicator was adjusted upwards again to longs paying 0.10% every 8 hours.

The weekly equivalent fee of 2.1% indicates that the leverage of retail investors is occupied by bulls. Of course, we cannot know whether the recent trend is enough to trigger a rapid rise in prices, but even without considering the forward appreciation of FIL, looking at these data alone, FIL once again broke through 100 The dollar seems to be only a matter of time.