The Cloud-based storage system Protocol Labs’ native crypto Filecoin [FIL] grew 134.0% in the last 7 days with a market capitalisation of more than 12 billion dollars to briefly become the 10th largest crypto-asset by market cap. Actually, FIL had even overtaken a popular altcoin, Chainlink’s Link, in the process, according to data from CoinMarketCap.
A rise in the FIL chart was mentioned above and on 1 April 2021 the new all-time high of $236.84 was climbed to the rear of the cryptoasset. FIL has achieved exceptional results this week, especially since it has come together at a time of stagnation at the most important cryptocurrencies in the world, Bitcoin, and Ether.
Next, the “Grayscale” effect may be due to Filecoin’s Bull Run as a result of the recent decision by the crisis fund manager to propose five new trusts based on altcoin, including FIL. The Livepeer native crypto asset, LPT, which made news a week ago, showed similar results. Shortly after Grayscale Investments started the trusts, which included LPT, the crypto recorded a price increase of 1,000 percent.
But Filecoin’s support in China might be a primary reason for the crypto’s price surge.
Local reports say that a recent investment in the Filecoin Mining ecosystem in the Shenzhen computer hardware giant Xinyuan Technology has been $89 million. Interestingly, rather than Filecoin, the hardware company used the word “Distributed Storage Center Project.”
Colin Wu, Chinese cryptojournalist who reported the development, clarify, in particular as the area has used strict rules concerning trading and ownership of cryptocurrencies, that the company has deliberately avoided project name to appease Chinese officials.
The journalist added that FIL’s 24-hour trading volume rose to $24 billion on chart, said Wu, China is “looky for Filecoin,” adding that FIL’s largest crypto currency, Huboi.
Wu believes that Filecoin is “the third option for chinese miners,” which contributes to FIL’s price rallying with a shortage of BTC or ETH mining machines.
It should be noteworthy, however, that at the time of the press FIL recorded strong corrections of $228 million. And yet “the market overall hasn’t changed much,” according to Wu.