Why Is The Filecoin (FIL) Price Pumping Suddenly?

CryptoMode Filecoin FIL

The big news today is the stellar price increase of Filecoin (FIL). Interestingly, there doesn’t appear to be a particular reason for this development, despite noting a healthy ecosystem. Be very careful when chasing this pump, as a price correction appears imminent.

Why Is Filecoin (FIL) Pumping?

One may argue this week has been relatively bullish for all cryptocurrencies. Bitcoin recovered 7.6% of its lost value in a week, pushing other currencies higher. Most industry-wide gains sit between 7.6% and 15%, which is more than solid under the current conditions. Unfortunately, it is too early to consider this a bull market, as there is still plenty of market resistance. 

One outlier is Filecoin (FIL), which suddenly seems to follow its own price path. It is one of the older projects in the space, but a weekly gain of 38.7% is out of the ordinary. Most of that gain comes from today’s near 28% pump, even though there is little or no excitement among community members. Some will gladly take the profit – assuming there is any – but other than that, this run should prove relatively short-lived. 

There is no immediate reason why the FIL price would shoot up by this much. A return to the all-time high of $236.84 for FIL seems pretty much impossible, as it would create a fully diluted market cap of $450 billion. However, the currency notes a solid bounce from its very recent all-time low of $4.83, recorded on June 18th. That doesn’t lend real credibility to the current FIL pump, though, as it seems overall belief in the token’s value – not necessarily the entire project – is very low. 

Altcoins will often pump for no reason and then retrace most – if not all – of these gains in the coming weeks. It is unclear if that will be Filecoin’s fate, but the lack of announcements or reasons for an uptrend supports this theory. The majority of trading volume comes from Binance and OKX, with Gate, BKEX, FMFW, and HitBTC contributing too. Nothing to get too excited about, but it is worth enjoying some green candles while they last. 

The Filecoin Ecosystem Today

A recent network update was shared via the Filecoin newsletter. Overall, the project is in a good state and has some positive notes. Reaching nearly 19 EiB in total network storage power confirms people are willing to share spare hard drive space with the network and its users. Moreover, there are 4,055 storage providers, which seems relatively low. 

The newsletter also mentions how over 400 organizations are building on Filecoin, and 1,475+ new projects will enter the ecosystem. Those seem optimistic statistics which don’t match the number of storage providers, but it is what it is. Additionally, the project has –  allegedly – over 10k contributors on GitHub, which would be fairly impressive. Ultimately, there is a lot “in the pipeline,” but little to show for it, indicating the current FIL pump will end pretty soon. 

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