Filecoin (FIL) has been the most prominent coin in the crypto industry in recent days. With a 116% price increase in the past 7 days, the FIL token has recorded the highest pump by far.
However, in the past 24 hours, it has experienced a sudden drop from $ 236 to $ 182. This is still a huge gain considering the cryptocurrency has surged 116% last week and 42% over the past 24 hours.
Most of the entries for the token came from Grayscale Investments, the world’s largest investment fund. We can list two factors that could lead to great demands for FIL in recent weeks: Increasing demand from China and technical outlook.
Not only the retail industry but also Chinese companies seem to have high expectations for Filecoin lately. For example, Chinese company Xinyuan invested nearly $ 100 million in Filecoin miners, while Ninth City, publicly traded in Nasdaq (NCTY), has spent $ 12 million on Filecoin mining since February.
In addition, Filecoin has also announced numerous partnerships and new sources of liquidity in recent weeks. First, Coinbase listed its FIL token in December, and a few weeks ago Grayscale also announced the launch of a Filecoin Investment Trust. Just yesterday, the Filecoin Foundation Internet Archive (archive.org) announced a donation of 50,000 FIL (approximately $ 10 million). Bagis aims to “support both organizations’ mission to protect humanity’s most valuable data and improve access to information”.
Most investors believe Filecoin has the potential to do better in the coming months.