22% in 24 hours – What FIL’s gains tell us about the excitement around FVM mainnet
- FIL was up 22% in the 24-hour period at the time of writing
- The much-awaited FVM launch was slated for 14 March
Filecoin [FIL], at the time of writing, was one of the crypto-market’s top performers after it jumped by 22% in a 24-hour period. That wasn’t all either, however, as its trading volume also surged by nearly 83%. The latter development implied that there has been significant demand for the coin of late.
While a lot of it could be attributed to the improving sentiment around the crypto-market since USDC’s de-pegging, the hype around the soon-to-be-launched Filecoin Virtual Machine (FVM) is providing the major push.
Read Filecoin’s [FIL] Price Prediction 2023-24
FVM set to bring major changes
As per Filecoin’s ecosystem, FVM will be the execution environment for running Ethereum Virtual Machine (EVM)-compatible smart contracts on the network. It will allow developers to port any existing EVM-based smart contracts straight onto the FVM.
While FVM won’t directly interact with the data stored on the network, it can orchestrate where and how data gets stored, edited, and maintained, giving a fillip to the storage capability of the Filecoin platform.
Binance has had its say about the upgrade slated for 14 March too. It will suspend all deposits and withdrawals of FIL 45 mins before the upgrade starts and recommence once the network is deemed to be stable.
In fact, Binance has assured that normal trading activity of FIL won’t be affected during the upgrade.
Investors turn bullish for FIL
According to Token Terminal, Filecoin’s development activity dropped steadily after hitting a three-month high on 16 February. Ergo, the project’s community should be wary of this trajectory.
However, thanks to an increase in trading volume, the total transaction fees paid by users surged to a two-month high. This was accompanied by a weekly growth rate of 37%.
At the same time, the number of social mentions and engagements for FIL rose sharply too, as per LunarCrush.
Realistic or not, here’s FIL market cap in BTC’s terms
Additionally, CoinGlass data revealed that investors turned bullish as the number of long positions taken for FIL increased vis-à-vis the short positions. In fact, at the time of writing, the Longs/Shorts Ratio stood at 1.02.