Filecoin Price Up 15% Amid New Partnerships, FIL Expected To Rally To $20

Filecoin, the native cryptocurrency of the decentralized storage platform FIL, is experiencing a strong rally, with a 12.25% gain in the past 24 hours. At the time of writing, the FIL price is trading at $11.46, with a market cap of $5.98 billion. Furthermore, the daily trading volumes have surged a staggering 123% to $2.81 billion.

Source: CoinMarketCap

What Is Causing The Filecoin Price Increase?

The recent FIL price surge is linked to BVMnetwork‘s integration alongside LighthouseWeb3, which enhances the security and scalability of Bitcoin Layer 2 solutions. Filecoin’s decentralized storage optimizes transaction record archiving, aiding Bitcoin developers via LighthouseWeb3 Node Aggregators. This boosts Bitcoin Layer 2 solutions and increases the demand for the FIL token.

Furthermore, Daniel Cheung, co-founder of Syncracy Capital, has drawn parallels between Filecoin ($FIL) and Solana ($SOL) at a price level of $20, citing a significant gap between market perception and reality, which could lead to a substantial revaluation.

Cheung outlines several factors contributing to this disparity:

Filecoin’s Versatility: Contrary to common belief, Filecoin is not solely a storage blockchain. Cheung asserts that the platform encompasses many applications beyond storage, including compute and retrieval functionalities. He positions Filecoin as a strong contender in the artificial intelligence (AI) narrative, emphasizing its extensive network of data centers.

The emergence of Filecoin Ecosystem: Cheung notes a pivotal moment for the ecosystem following the launch of Filecoin EVM (Ethereum Virtual Machine) in the past year. FIL has transitioned into an emerging smart contract platform, with numerous projects preparing to launch tokens like Glif and Filecoin subnets like Fluence gradually rolling out.

Misconceptions About Total Supply: Cheung highlights a prevalent misconception among investors regarding Filecoin’s total supply. Despite concerns, he indicates that over 40% of the total supply is unlikely to be utilized, which could influence investor sentiment once understood.

Target Price for Filecoin Upfront

The FILUSDT pair has recently witnessed an unprecedented surge in trading volume on the weekly timeframe, reaching all-time highs. Analyst Alan Santana views such exceptionally high volume as an extremely bullish indicator, suggesting ample room for further Filecoin (FIL) growth. He has given an initial Filecoin (FIL) price target of $18 (95% increase). Subsequent targets are $44, $70, and $96, with potential gains of up to 915%.

Related Reading | Bitcoin Soars: Kiyosaki Foresees $300,000 Price By 2024

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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