The Filecoin price staged a strong recovery on Thursday. FIL rose to an intraday high of $94.56, which was about 32% above the lowest level this week. This rally pushed Filecoin’s total market capitalisation to more than $9.48 billion.
Filecoin and NFTs
Filecoin is a decentralized storage platform that was created by Filecoin Labs in 2017. The platform is seeking to decentralize the file storage industry by turning it into an algorithmic market. This market runs on a blockchain with a native protocol token that miners earn by providing storage to customers.
FIL is the native token for the Filecoin network. The token is mined through what is known as a proof-of-storage or proof-of-replication technology. In addition to this, the network is built on the Decentralized Storage Network (DSN) technology, proof-of-work, and verifiable markets technology.
Filecoin’s goal is not to replace other centralized storage platforms like OneDrive and Google Drive. Instead, it’s goal is to help developers store their data in a decentralized and cost-effective platform. To achieve that, the Filecoin Labs Foundation has offered grants worth $1.5 million to developers, who have built about 45 projects.
The Filecoin price is rising because of its investments in NFTs. They introduced NFT.Storage in April, a platform that allows people to store their NFTs and their Metadata safely. It works by having content addressing features that provide provable storage and resilient retrieval capabilities.
