• Filecoin’s FIL token saw its price reach highs of $7.89 on Coinbase on 17 February 2023
• The gains for the decentralised storage network come after the announcement of the launch of its Filecoin Virtual Machine (FVM) on 1 March 2023
• The FVM will bring smart contracts, scalability, programmability and lower fees to the Filecoin blockchain
Filecoin Price Surge
The native token of decentralized storage network Filecoin (FIL) rallied amid news of an upcoming network development. On Friday, 17 February 2023, the FIL token saw its price reach highs of $7.89 on Coinbase.
Launch of Filecoin Virtual Machine
On Tuesday 14 February, a flip in market sentiment had pushed FIL/USD down nearly 13%, but it has since recovered with a 5% upside. This was followed by news that the Filecoin Virtual Machine (FVM) will launch on 1 March 2023 which sent the coin soaring to its highest price level since 18 August 2022 with a massive 26% rally.
Benefits of FVM
The main trigger for today’s rally appears to have been news that the FVM will go live on 1 March. According to the Filecoin developer team, this layer-1 network will feature smart contracts and programmability as well as further scalability and much lower fees for users looking to interact with decentralised applications.
Impact Of News On Market Sentiment
Going by today’s 340% jump in 24-hour trading volume, there seems to have been some serious buying firepower behind the price surge which has seen an enormous uptick in the past two days breaking above key resistance around $6.00.
Whilst it is not possible to make a Filecoin price prediction with certainty, it appears clear that news surrounding its upcoming development has had a positive influence on market sentiment pushing prices up significantly over recent days.