I asked ChatGPT whether Filecoin will see its fortunes turn, its reply was interesting
Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writer’s opinion.
Filecoin [FIL] has been faltering near the familiar roadblock below $5, offering shorting opportunities. Bitcoin [BTC], Ethereum [ETH], and a few other top coins definitely cast a huge shadow on other cryptocurrencies and their blockchains. Filecoin is among the blockchain projects overshadowed by its bigger brothers. However, that has not taken away from its potential.
Is your portfolio green? Check out the Filecoin Profit Calculator
We decided to go through the AI route in our pursuit of wanting to find out what the future has in store for Filecoin. ChatGPT can be quite useful at times but it is not the most accurate either. So, our Filecoin-ChatGPT adventure had to have the right questions.
What are the special use cases of Filecoin?
This Filecoin ChatGPT query yielded multiple answers that elaborated upon the scope of its operations. Decentralized storage was the first and weightiest era, because it underscores the network’s main solution – a system that can offer a decentralized and immutable data storage solution. Here’s a look at other use cases.
In addition, Filecoin offers an ideal solution for content delivery networks, as well as file redundancy and backup. In short, the answers that we got from Filecoin’s ChatGPT enquiry were reasonable and legitimate.
After establishing that ChatGPT handled the question properly, we embarked on the next step – finding out what it could predict about Filecoin’s future. Previous experiences with the AI platform and future predictions have often been unsuccessful. But what if we could use a different angle?
In what scenario will Filecoin be successful in the future?
The answer we got to the above question was quite sensible. ChatGPT commenced by stating that the network is poised to achieve success under the right conditions. This is especially important, considering the promising nature of the decentralized storage segment.
Filecoin is still in the early stages of adoption, just as is the case with most other top blockchain networks. This means mass adoption and critical mass have yet to be achieved. However, the network has achieved significant progress so far.
The AI bot expects FIL to hit $150-$200 towards the end of the current quarter— a ridiculously high figure by all accounts.
A recent Messari report released in July looked into Filecoin’s Q2 growth numbers. According to the report, the network’s storage market has been steadily growing.
This was confirmed by the number of active deals which grew by 64% (QoQ). Storage utilization was up by 4% in Q2 compared to Q1. The network also reported a 91% increase in revenue generated from fees during the same period.
State of Filecoin Q2'23 from @MessariCrypto is out ? Here's the TL;DR.
1️⃣ Filecoin's storage market grew in Q2'23, active deals ⬆️ 64% QoQ
2️⃣ Storage utilization grew 4.1% in Q1'23 -> 8% in Q2’23
3️⃣ Fee revenue increased 91% in Q2'23 (⬆️ 67% in USD)
— Filecoin TL;DR (@FilecoinTLDR) July 18, 2023
Filecoin’s ChatGPT answers aligned with the growth that the network achieved in Q2. It is confirmation that the network is still headed in the right direction.
Filcoin’s market cap at press time indicated an underperformance despite its impressive growth. It had a $1.77 billion market cap, a fraction of its $3.58 billion market cap peak earlier in 2023.
Note that the market cap does not necessarily reflect the network’s growth. It is instead heavily influenced by the overall crypto market conditions and sentiment. But what about its price action? We decided to use ChatGPT to determine whether it will reach $100.
What does ChatGPT say about FIL?
The Filecoin ChatGPT price prediction inquiry did not yield a clear-cut answer, largely because it does not have access to real-time pricing data. However, it noted that there are multiple factors that affect prices.
The good news is that the network is one of the few that operate within its decentralized storage niche market. This is promising for the future of FIL.
As far as price performance is concerned, FIL traded at $4.07 at press time. Though its Relative Strength Index (RSI) rested below the neutral 50-level, its Money Flow Index (MFI) stood slightly above it. Its On Balance Volume (OBV) showed a downtick.
Read Filecoin’s [FIL] Price Prediction 2023-24
As of now, it seems that the bears are going to pull down the bulls as far as Filecoin is concerned.
While ChatGPT is too enthusiastic about the performance of Filecoin in the current quarter, its on-chain metrics don’t encourage us.