In October of 2020, Filecoin launched the mainnet to the protocol, which is probably how the price of FIL was pushed to a new all-time high. The new ATH was recorded on the same day of the mainnet launch, at 208.95$. However, FIL dropped by -62.8% since reaching the new all-time high price. The reason behind the drop might be the case of having eight main miners to the Filecoin protocol protesting “unfair economic model”. One of the top miners is said to have reduced the number of InterPlanetary File System machines from 8,000 to 276 units, as miners were supposed to stake large amounts of FIL to start mining. However, the situation of Filecoin might improve as a China-based company New Universal – Newu invested 90 million dollars in Filecoin system equipment. Can Filecoin revisit its ATH in 2021?
Can Filecoin (FIL) Retest its ATH in 2021?
From March 15th to March 17th, Filecoin rallied with over 40% of gains in 24 hours. This case may be a hint that FIL is preparing to acquire a bullish pace of growth with serial and occasional dips and price corrections. With the Chinese company Newu investing 90 million dollars in equipment for the Filecoin system, and Huobi investing 10 million dollars in Filecoin incubation center, the demand for FIL may rise consequently. This case might result in more gains for FIL coin, while FIL already seems to be on the road to recovery. In only seven days, Filecoin scored nearly 50% of gains and nearly 90% of rises in two weeks. The current market capitalization places Filecoin as the 22nd biggest crypto in the market of over 2,000 cryptocurrencies. In case Filecoin would keep up with the current bullish momentum, the crypto could easily revisit and retest its previous ATH with the next bull run.
Image credits: Cover photo taken from boxmining