Filecoin is a project operated by Protocol Labs with the goal of making data storage more decentralized, and has recently had a protocol upgrade that increases storage capacity significantly.
Filecoin continues to increase its storage capacity
Over the course of 2022, the storage capacity on the Filecoin network has already increased by over eight times, but a recent network upgrade will increase the capacity by many more multiples – the network will now be able to host zettabytes of storage.
This is a significant upgrade, and means that more data can be stored using the blockchain for far more cheaply than beforehand.
One would expect data storage to increase in line with Moore’s Law (approximately doubling every 18 months), but Filecoin’s innovation appears to currently be outpacing this trend.
The Filecoin community comes to life
One of the main drivers of price in the world of cryptocurrencies is the social sentiment and strength of the network.
Metcalfe’s Law means that the more people who are a part of a particular project, the more valuable it becomes (n^2).
Since the announcement made by Filecoin at ETH Lisbon, the Filecoin community has come alive, with engagement (as tracked by LunarCrush) having shot through the roof to break ATHs.
Filecoin social engagements measured daily hit an All-Time High of 27.88M on news that Filecoin Foundation and Protocol Labs are Introducing Decentralized Storage Alliance to Interlink Web3 and Web2.
Social Insights: https://t.co/9E6JHOgQhA #Filecoin $FIL @Filecoin pic.twitter.com/uKDn48Ne37
— LunarCrush (@LunarCrush) November 1, 2022
Daily engagements for the project on social media broke the 27.8m barrier, which is extremely impressive for a project such as Filecoin, especially in its niche of decentralized storage (a narrative that hasn’t yet fully gripped the cryptocurrency community).
Filecoin volume remains low
Given that we are currently in the depths of a bear market, it ought to come as little surprise that volume for Filecoin has remained low despite the bullish news.
Filecoin’s price has not appreciated significantly, either, and has actually decreased somewhat since the announcement was made.
Nevertheless, the increased storage capacity for the network bodes extremely well for the project in its pursuit of decentralizing the storage of data, and making access to the aforementioned far more transparent and immutable.
Could the Filecoin price perform well in the future?
In the coming months, speculators are expecting that the work that the Filecoin community have done during the bear market will start to pay off.
When the bull market comes back into swing, the value of FIL could well appreciate significantly, especially in the context of users wishing to own more of their data.
The Lens Protocol is a new social media platform that hopes to decentralize data, and allows users to own their own profiles, followers, and following lists. This is one of many innovations currently in the space that quite naturally requires a huge amount of data to be stored, and Filecoin is hoping to capitalize on this sort of innovation.
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Author: Jamie McNeill
Follow @Jamie_DeFi
Jamie is an expert in DeFi, blockchain consensus models, and changing governance models in the decentralized space, often commenting on those emerging technologies on Twitter. He has a penchant for sociology and cycles of human behavioral patterns. Currently Jamie works at B2C as a crypto news content writer, and also …
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