• Decentralized storage protocols have recently gained attention as their use has increased
• Utility FIL token jumped 62% over the past week, outperforming Bitcoin (BTC) and Ether (ETH)
• Filecoin is readying its Filecoin Virtual Machine (FVM) for a March unveiling
Decentralized Storage Protocols Gaining Attention
The recent increase in the usage of decentralized storage protocols has been gaining attention. The native utility FIL token has seen an impressive jump of 62% over the past week, outperforming Bitcoin and Ether.
Filecoin Readying FVM Launch
Filecoin is preparing for the launch of its Filecoin Virtual Machine (FVM). The FVM will create a runtime environment for smart contracts and is expected to lead to greater usage. It will enable new applications such as perpetual storage contracts, on-chain cloud solutions, data DAOs and DeFi contracts.
The pricing offered by decentralized storage networks such as Storj and Siacoin is much more competitive compared to Amazon Simple Storage Service (S3), making them attractive options for archival data storage. This could be one of the reasons why these tokens have seen an increase in value in the market.
As per CoinDesk data, FIL was trading at $8.10 on Tuesday while BTC had risen 10% and ETH had jumped 7% in the past seven days. The CoinDesk Computing Index that measures performance of computing protocols was up 16%.
The increased usage of decentralized storage protocols has been reflected in their native tokens’ price movements with many tokens seeing significant gains over the past week. With Filecoin’s FVM launching soon, there could be further growth in store for these protocols.