Bitcoin

Filecoin’s market cap hits $ 450 billion after FIL’s price surpassed $ 230

The fully diluted valuation of Filecoin (FIL), a cryptocurrency and digital payment system built on top of it InterPlanetary File System (IPFS),Reached the $ 450 billion.

Filecoin is a blockchain that allows users to rent unused hard drive space to store and retrieve data. Its model is similar to that of Snowflake, The largest software IPO in history was thus completed in September 2020.

A combination of three factors has likely caused the price of FIL to go up in the past few weeks: technical dynamics, increased demand in China and its uniqueness compared to Ethereum.

Analysts say the huge demand is coming from China

Filecoin’s market cap hits $ 450 billion after FIL’s price surpassed $ 230
Filecoin’s market cap hits $ 450 billion after FIL’s price surpassed $ 230

According to Wu Blockchain, a journalist from the crypto room in China, The demand for FIL has exploded in China.

FIL’s daily volume about Huobi, This is the most important cryptocurrency exchange in China. reached USD 24.2 billion. journalist He said::

“China is crazy about Filecoin, with a 24-hour gain of more than 30% and a high of $ 236. FIL’s 24-hour trading volume on Huobi, China’s largest exchange, hit $ 24.2 billion. Dollars, almost three times the volume of the second ETH of $ 8.8 billion, that of Bitcoin, was $ 7.8 billion FIL on Binance. “

Could have been a plausible scenario A similar fear of missing out on the FOMO trend in Asian markets, including China, sparked a strong uptrend led by the derivatives market.

As the demand in China began to rise, the open interest of the Chinese futures exchanges increased and eventually flowed into global futures trading platforms.

The technical dynamics are getting stronger

When the price of FIL began to rise, the open positions on the major futures exchanges began to rise rapidly.

According to Bybt data in 24 hours Filecoin’s open interest increased 46.37%.

An anonymous trader known as “Waro” explained that When a cryptocurrency sees a strong uptrend like this, it is difficult to hit an upper limit.

Many traders try to predict the top, which will result in liquidations of short positions, and this results in a brief squeeze that adds fuel to the rally. To the He said::

“You may not understand why USDFIL keeps going up, but I know that trying to catch a roof is suicide most of the time. For those who don’t understand this tweet, the likelihood of getting murdered if they try Catching a short-term blanket is higher than you are trying to short the blanket. “

FIL finally experienced a steep climax in the short term and fell by 23% on the major stock exchanges in just 45 minutes.

4-hour chart of the FIL / USDT pair (Binance). Source: TradingView.com

Ethereum’s momentum could be a catalyst

James Spediacci,Ethereum analyst he said continuously while stressing Over the past four years, Filecoin has brought the uniqueness as a layer 1 blockchain that others as competitors of Ethereum are struggling with.

Spediacci explained that Decentralizing cloud storage with IPFS is an innovative technology that actually adds value to the blockchain space. He said:

“I’ve been saying this since 2017: ‘Besides Ethereum, Filecoin is the only other blockchain that offers real added value for the world through the decentralization of cloud storage with IPFS and complements Ethereum.’ If you sold your FIL for USD 20, you have, ‘I won’t make it.’

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