What happened
As of 10:30 a.m., EDT, Filecoin (CRYPTO: FIL) is up 10.18% in the past 24 hours to $61.58 per token. Investors are boosting the price of FIL tokens in anticipation of the Filecoin Launchpad Accelerator Demo Day on Sept. 28.
Twenty companies will present their projects built on the blockchain. Filecoin is a network that enables the storage of digital assets on peer-to-peer ecosystems instead of central servers. Users pay data storage fees using its native FIL tokens.
Image source: Getty Images.
So what
The best aspect of Filecoin is its ability to store the underlying digital assets for the certificates of ownership known as non-fungible tokens (NFTs). Digital art, music, videos, etc., are too big for it to be practical to store them on a blockchain directly. Hence, the actual asset is located on storage networks like Filecoin's while art collectors buy and sell their ownership certificates. OpenSea.io, the biggest marketplace for NFTs, uses the Filecoin network for permanent file storage. Trading volume on the platform surpassed $3.4 billion last month.
Now what
Despite a market cap of close to $7 billion, FIL tokens still have a lot of potential to grow. For starters, the generous tax treatment for NFT donation, as with physical art, is something that has been propelling the NFT market to the skies of late. In addition, Filecoin has facilitated over 1.17 million storage deals and holds close to 32 million gigabytes of storage space. So definitely check out this hot crypto for investors who can stomach the volatility.
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