Filecoin solves the storage problem by providing access to millions of storage devices (Peer to Peer networks) around the world. Storage devices could include your personal computer or something more dedicated just for this purpose.
Storage providers earn Filecoins to store other people’s files. Blockchain is used to track and validate these storage-related transactions, including whether providers are storing files correctly.
In the year 2021, Filecoin had 3600 storage providers.
According to the latest report of Messari
- Storage utilization increased from 27 million gigabytes in Q3 2021 to 231 million gigabytes in Q3 2022
- Protocol revenue in $FIL increased from FIL 1.39 million to FIL 1.77 million
- However, in dollar terms, revenue dropped from $95 million to $11 million.
Filecoin is better than Amazon AWS or Google Cloud in pricing on Filecoin because it is an open marketplace for providers.
FIL is the native token of the Filecoin network and is a deflationary asset, i.e. FIL tokens are burned to pay network fees. To date, 359,805,544 FIL tokens are in circulation. Below are the two use cases of FIL tokens:
- FIL tokens are used for the purpose of paying fees on the Filecoin network.
- These tokens are used to incentivize users to ensure that data is stored reliably.
Who are FIL’s main competitors besides traditional cloud storage providers? Arweave, STORJ, SIA etc.)
Here’s how Filecoin has behaved over the past 5 years
- 2020: (-56.7%)
- 2021: +59.1%
- 2022: (-91.7%)
Filecoin $FIL is currently priced at the same levels as in 2019.
It seems that FIL is making great strides in terms of solving the consumer problem. However, protocol revenue needs to grow even faster for FIL to start recovering. The storage market is worth more than $50 billion and therefore the opportunity for Filecoin remains huge.
Given how much FIL is growing and the target market it targets, Filecoin has a bright future. Given the current liquidity problems in the market, Filecoin will remain under pressure for some time. But in the long term, it seems to be a suitable case for investment.
Competitor analysis: Filecoin vs BitTorrent
Filecoin is a decentralized storage system that provides an open market for storing various user files. Here, users have to pay to store their files. One of its main competitors is BitTorrent, which is one of the oldest decentralized data storage networks. It is a P2P file sharing and torrent sharing platform. Let’s make a brief comparison between Filecoin and BitTorrent:
| Filecoin | BitTorrent | |
| Important audience | Users looking for storage space. | Users looking for a file sharing and torrent protocol. |
| Supported Platforms | SaaS | Windows, Mac, iPad and Android. |
| Performance over the last 1 year | -91.1% | -78.5% |
| Performance of the last 3 months | -43.2% | -23.1% |
| Performance in the last month | -29.9% | -15.5% |
| Trend over the last 7 days | -6.7% | -9.1% |
As we can clearly see that Filecoin failed to surpass BitTorrent for a year, despite the fact that both cryptocurrencies have decreased in price for this period.
Competitor analysis: Filecoin vs Render token
Render Network aims to revolutionize the digital creation process by allowing people to share their unused or extra GPU power with people who need GPUs. Let’s make a comparison between Filecoin and Render token:
| Filecoin | Render tokens | |
| Important audience | Users looking for storage space. | Users looking for GPU rendering services. |
| Blockchain on which it is built | Filecoin Blockchain | Ethereum |
| Performance over the last 1 year | -91.1% | -91% |
| Performance of the last 3 months | -43.2% | -25.4% |
| Performance in the last month | -29.9% | -16.3% |
| Trend over the last 7 days | -6.7% | No net change |
The above data describes that both cryptocurrencies have declined by more than 90% in a year and Filecoin, clearly, has not outperformed its competitor, namely the Render token.
Table of Contents:
Will Filecoin reach $100?
In theory, this is completely possible. Filecoin has been working well (business) for the last 2 years. It operates in a very large market and has a very small share. So, potentially, it is likely to work well in the future. With a CAGR growth of 25% per year, Filecoin could rise to $100 in 16 years.
Can Filecoin reach $1000?
Filecoin will have to increase 300 times to reach $1000. The current annual revenue for Filecoin is around $50 million. The global personal storage market exceeds $50,000 million. 300x of current revenue translates into about 35% of the market, which is impractical given the current competition. So while it is very likely that Filecoin will rise from current levels, it may be quite difficult for him to climb to $1000
.
Filecoin Price Prediction 2023, 2025 and 2030 (Aggregate)
It is very likely that the global economy will recover in 2024 and 2025 by increasing liquidity which in turn will help Filecoin tokens that have a very good business model
.
Filecoin 2023 price prediction is $9.2
Filecoin 2025 price prediction is $14.8
Filecoin 2030 price prediction is $44.3
Filecoin price prediction today
| General outlook | neutral |
| 1. The wisdom of the market | Partially positive |
| 1a. Market data | neutral |
| 1b. Technical recommendation | buy |
| 2. The wisdom of the crowd | neutral |
| 2a. Buzz on social media | superior |
| 2b. Social Media Sentiment | lower |
FIL Price Prediction: How to Buy Filecoin?
Before talking about where to buy Filecoin, you should know how to buy it. Mentioned below are the steps you need to follow.
Step 1: Compare different crypto exchanges that offer the services to buy Filecoin. This way, you will be able to find a site that will offer the best features and also this at affordable rates.
Step 2: The next step would be to create your account in the exchange. You need to verify your email address and identity.
Step 3: After verification is complete, you need to make a deposit using a suitable payment method.
Step 4: You are now ready to trade your funds to buy Filecoin.
