Filecoin (FIL) storms into the top 10 after an increase of + 400%, what’s behind this?

The price of Filecoin (FIL) was already quite fast at the beginning of last month, but at the end of March this price increase accelerated enormously. On March 30, the FIL price was still at $ 125 and a new all-time high (ATH) of $ 237 was reached on April 1, up 90% in less than 24 hours.

Filecoin reached a market cap of nearly $ 15 billion and surpassed cryptocurrencies like Tron (TRX), Stellar (XLM), Theta (THETA), Chainlink (LINK) and even Litecoin (LTC). FIL took the ninth position in the list of largest crypto on the market.

Filecoin is a whopping 425% in the plus in the past 30 days, but what is it and what is behind this immense increase? Filecoin is a crypto built on the so-called InterPlantery File System (IPFS) and is a kind of decentralized file sharing service, or file exchange service.

Filecoin has been referred to as a “decentralized Dropbox” and the project allows users to rent out their hard disk space, making the cryptocurrency somewhat unique in this sector.

Several major announcements have been made about the project recently. Filecoin was listed on major exchanges such as Binance, Coinbase and Huobi at the end of last year. Last week, the project announced that it will integrate with Chainlink to create a connection to Ethereum (ETH). Major crypto fund manager Grayscale Investments launched a new fund for Filecoin two weeks ago.

The main cause for yesterday’s rise appears to be from China. Filecoin is on the rise in China, seeing trading volume on April 1 on Huobi, China’s largest crypto exchange, which was three times that of Ethereum and Bitcoin (BTC), Wu Blockchain reports:

After an increase like this, the fear of missing out (FOMO) often also catches on. People do not want to miss the boat which causes the price to rise further as a kind of self-fulfilling prophecy. It also caused a short squeeze from investors who thought they were predicting a top. In addition, open interest (IO) on FIL futures rose nearly 50% on April 1, according to Bybt.com.

Still, the Filecoin price also saw a significant correction yesterday after the ATH was reached. The price fell by no less than 21% in a few minutes. As a result, Filecoin returned to the top 10 list under Litecoin. At the time of writing, the FIL rate appears to be consolidating around $ 200.

In related news, the Filecoin Foundation is donating 50,000 FIL, worth $ 10,000 million, to the Internet Archive: