- The launch of the Filecoin Virtual Machine has the potential to spur another storage boom
- Users aren’t exactly thrilled with the upgrade
Filecoin [FIL], the decentralized storage system, registered a revenue increase due to the participation of storage providers and users over the past year. The active involvement of these stakeholders implied that supply and demand jumped across the board.
Read Filecoins [FIL] Price prediction 2023-2024
According to Messari, the Filecoin supply and protocol revenue could contribute enormously to the network’s KPIs. Information from the distributed crypto data library revealed that active storage deals and storage capacity increased Filecoin storage by 1755.7% year-over-year (YoY).
Source: Messari
This increase implied that users now have more space to store data while being easy to find and difficult to censor. However, with the Filecoin Virtual Machine (FVM) Mainnet launch approacheswill the project be able to surpass this milestone?
FVM to fine-tune the save game?
Filecoin claims that the idea behind the FVM upgrade is to create a runtime environment for smart contracts on the network. This means that users will have access to an open data economy while Filecoin becomes full Ethereum [ETH] Virtual Machine (EVM) compatible.
As a result, it would translate into an immediate launch of ERC-20 tokens on the Filecoin network. In terms of storage, the FVM would provide long-term storage proofs, allowing providers to replicate and repair the blockchain’s defects.
Despite the possibility of better storage performance, the preference for the Filecoin ecosystem is far from the pinnacle. At the time of writing, weighted sentiment was down to -0.335, based on Sanitation data.
When interpreting this metric, the on-chain analytics platform adopted the vast majority of posts and the unique social volume condition. Simply put, the prevailing decline underlined that Filecoin has seen more negative comments than usual.
Source: Sentiment
However, the social dominance of the project peaked twice: on March 1 and 4. This is despite the fact that it was reduced to 0.162% at the time of writing.
The trend of this metric indicates the percentage an asset is getting with respect to the discussion among the top 100 cryptocurrencies by market cap. The aforementioned finding means that Filecoin does not seem to enjoy exceptional share.
Realistic or not, here it is FIL’s market cap in terms of ETH
In the meantime, Filecoin presented what the FVM would practically accomplish at the Ethereum Denver event on March 4. The project noted that the launch of Mainnet would solidify Filecoin’s position as the top L1 with access to the open data ecosystem. Colin Evra, Filecoin’s Interplanetary File System (IPFS) Lead said:
“The launch of the FVM initiates a step of the Filecoin master plan, bringing smart contracts and user programmability to the open data economy”