Decentralized Storage Tokens Outperform Bitcoin, Soaring 62%
•Decentralized storage protocols have grown in use recently, leading to increased attention and a surge in the value of their native tokens.
•Filecoin’s FIL token has jumped 62% over the past week, outperforming Bitcoin and Ether.
•Storj (STORJ) and Siacoin (SC) have also climbed 16%, according to CoinDesk’s Computing Index.
Increased Use of Decentralized Storage Protocols
The recent growth in usage of decentralized storage protocols has gained attention, leading to a surge in the value of their native tokens. Filecoin’s native utility token FIL saw a jump of 62% over the past week, outperforming Bitcoin and Ether which rose by 10% and 7% respectively during the same period. Additionally, Storj (STORJ) and Siacoin (SC) have both climbed 16%, as seen on CoinDesk’s Computing Index.
Filecoin Virtual Machine
Filecoin is readying its Filecoin Virtual Machine (FVM) for March unveiling which will create a “runtime environment” for smart contracts. The FVM is expected to enable new applications through smart contracts, increasing Filecoin’s usage further. Colin Evran from Protocol Labs tweeted that writing smart contracts on Filecoin allows users to create perpetual storage contracts with their own storage market cloud solutions, data DAOs and DeFi contracts.
Competitive Pricing
Messari research analyst Mihai Grigore said that due to competitive pricing compared with Amazon Simple Storage Service (S3), decentralized storage is an appealing choice for Web 2 entities seeking cost-effective alternatives for storing large amounts of archival data,.
Cryptocurrency Markets
On Tuesday BTC was reaching $51K while ETH was trading at around $1,675 after closing at $1583 on Monday night but both couldn’t keep up with FIL’s performance over the past week where it stood above $8 dollars per token. Other digital assets such as Polkadot overtook Ripple to claim 4th place on CoinMarketCap while DogeCoin continues its rally surging by more than 20%.
Conclusion
Overall cryptocurrencies are seeing positive price movements this week with many altcoins outperforming BTC & ETH like FileCoin’s utility token FIL which surged by more than 60%. Decentralized storage protocols are becoming increasingly popular due to their competitive pricing compared with traditional service providers like Amazon S3 making them an attractive option for Web 2 entities seeking cost-effective alternatives for archiving data.