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Filecoin Broke Into Top 10 Cryptocurrencies But Is It Bound For A Crash?

Filecoin broke into the top 10 cryptocurrencies list and surged by 138% in one week but now, some analysts wonder whether the coin is poised for a crash? Let’s find out more in our latest altcoin news today.

Filecoin did have a rough start but then managed to hit the top 10 leading cryptocurrencies by market cap. After surpassing Chainlink and Theta, FIL rallied 138% in a week and 418% in one month, taking the tenth position. Founded by Juan Benet who is the creator of InterPlanteary files System (IPFS), the platform managed to attract plenty of attention in China as Colin Wu reported.

Filecoin with strong upside momentum. Source FILEUSDT Tradingview

The data shared by Wu shows that FIL saw a 30% increase in trading volume for the past 24-hours on the Huobi platform. The cryptocurrency managed to reach a new high based on the strong buying pressure and the demand for the cryptocurrency. Today’s trading volume stood at $24.2 billion compared to the one of Ethereum that stood at $8.8 billion and $7.8 billion for BTC. The rise in price had negative consequences for investors that had short positions as Wu noted:

“FILDOWN, a short-selling leveraged token in Binance FIL, plummeted by 53%, with a turnover of US$3.4 billion, indicating a large number of short FIL liquidation in Binance.”

Wu recorded an increase in transactions for the FIL/USD pair on the Coinbase Pro trading service with the price surpassing the $180 barrier adding:

“Transactions with high credibility were recorded on Coinbase. Distributed storage has become popular. Filecoin continues to climb to 136U, HOT has risen by nearly 40% and 2500% year-to-date, its market value is close to that of HT, the token of China’s largest exchange.”

FIL’s price seems to have increased after the launch of Grayscale’s Trust based on this and other cryptocurrencies to expand the product suite. The teams behind other platforms like Filecoin and Livepeer announced a co-mining program. Liverpeer is also launching a co-mining pilot with Filecoin in order to enable the miners to become video miners while continuing to mine on the network by storing transcoded video data.

The miners of these cryptocurrencies can obtain more profits and additional economic opportunities. The mining mechanism also requires miners to obtain token FIL and make bid/initial response with the latter contributing to the increase in purchase pressure for the token. Filecoin broke into the top 10 cryptocurrencies as the demand from companies seems to be increased as well.

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