Ranked 28th in CoinGecko’s cryptocurrency list, Filecoin (FIL) has been benefitting from the recent flip in market sentiment. Today’s market data shows that Ethereum, the market’s top altcoin, is up 1% in the daily time frame.
Investors in crypto, however, took this as a bullish signal, prompting the DeFi market to increase 2% in the daily. This led to the market of DeFi tokens to reach nearly $52 billion.
Source: Coingecko
Storage-related tokens like Filecoin also climbed due to the major cryptos’ recent market movement. CoinGecko data reveals that the combined market cap of all storage-related tokens grew by a percent in the past 24 hours with a trade volume of $602 million.
Filecoin On-Chain Dev Ramps Up
The Filecoin storage ecosystem is already being utilized by many organizations to store their data in a decentralized manner. However, this will be a growing list in the near future as the ecosystem plans to launch the Filecoin EVM, a Filecoin-native instance of the Ethereum Virtual Machine.
The Ethereum Virtual Machine, a.k.a EVM, is an execution environment that runs directly on the Ethereum blockchain. It is an essential tool for building dApps and creating smart contracts. With the EVM being the first virtual machine to run on top of a known blockchain, it has amassed a strong developer base which improves it by the day.
Did you hear? The #Filecoin EVM (FEVM) launch is closer than you think 😉
After the completion of the calibrationnet upgrade earlier today, FEVM is on track to bring smart contracts & user programmability to Filecoin mainnet on March 14th, 2023! 📅
👉 https://t.co/CMjBDN5Idz pic.twitter.com/AdoblUk19R
— Filecoin (@Filecoin) February 22, 2023
The Roll-Out Of FEVM
The launch of the Filecoin EVM would expand the reach of the ecosystem to EVM-specialized developers, strengthening Filecoin’s position in the crypto space.
The FEVM would bring the EVM’s tools which would enable developers to port smart contracts to the Filecoin blockchain or write Solidity-based SCs which is the EVM’s main coding language.
There are pros and cons with using the FEVM. One of the advantages of using the FEVM is the mature tooling the underlying Ethereum Virtual Machine has which is already well-known and liked by developers.
However, gas fees for using the FEVM is high with lower performance due to the virtualization overhead.
Nonetheless, this would increase the popularity of Filecoin in the coming years once the ecosystem’s native runtime environment for the EVM launches.
FIL total market cap at $2.7 billion on the daily chart | Chart: TradingView.com
At $6.92, Where Is Filecoin Headed?
At the time of writing, FIL was trading at $6.92, with the token having a crucial support at $4.84. FIL bulls can also take advantage of the token’s high correlation with Bitcoin and Ethereum which are leading the market’s sentiment flip from negative to positive.
FIL bulls are hoping to push the token up to the $9 level in the next few days. If this happens, the bulls may find themselves with enough momentum to test $10 in the short to medium term.
-Featured image from Pest Pointers