Crypto social media has been buzzing around Filecoin’s FIL token for days ( once more – it’s been there). The coin has produced an astonishing increase in its price in a week. Compared to the fact that on February 11, the price of a FIL was still below five dollars, on February 18 at dawn, the curve was already below $8. At the time of writing, the coin is trading at a slightly lower rate of $7.50.
There may be several reasons behind the rise in the price of Filecoin
Of course, the excitement in the community is not only regarding the price itself, but also regarding the fact that the blockchain will launch the Filecoin Virtual Machine (FVM) on the first of March. This will introduce smart contracts onto the chain and thus enable the emergence of decentralized applications. Of course, it is not clear that only the launch of FVM was the driving force behind the nearly 50% increase in one week. It is certain, however, that Colin Wu, who is behind the Wu Blockchain Twitter account, is also quite supportive of tweets threw out recently regarding Filecoin. And he has more than 250 thousand followers, which is not a small number.
The launch of the FVM was announced at the FIL conference in Singapore last September. Otherwise, this will make the network a full-fledged single-layer blockchain. Thanks to this, it will now be possible to create decentralized autonomous organizations (DAOs), launch Web3 games and paid apps, among other things. Even better, FVM will be compatible with the Ethereum Virtual Machine (EVM). So it will be possible to move crypto from one blockchain network to another. Plus, compatibility helps reduce gas bills and increase speed. Add this up and you can see why price speculators and members of the DeFi community are bullish.
