Filecoin Records 116% Weekly Gains, Led by Chinese Buyers
Filecoin (FIL) has been one of the most tracked crypto in the past few days. The crypto token’s price has surged 116% in the past seven trading days. Nevertheless, in the past 24 hours, FIL declined sharply on profit booking.
At the time of writing this article, the crypto token was trading at $171.06, down 10.6% in the last 24 hours. The crypto token was trading at $236 yesterday morning.
The quantity of Filecoin sold hit R228 million, higher than Bitcoin’s $177 million. Notably, the rest of the market did not react to it, indicating that FIL price movement was impacted by large investors (or whales).
Chinese media outlet Wu Blockchain has mentioned that Chinese investors or miners could be the reason for the huge price volatility.
“The funding rates of the three major FIL perpetual contracts have all decreased. The funding rates of Binance and okex have returned to near the 0 axis, while Huobi remains at a relatively high level. This may mean that FIL’s long position is mainly in Huobi.”
Filecoin has been receiving above-average interest from China in the past few weeks. As per Wu Blockchain, there is ‘craziness’ for Filecoin in China. FIL’s trading volume is thrice than that of Ethereum (ETH) and Bitcoin (BTC).
Nevertheless, in addition to retail industry, Chinese enterprises had been betting on Filecoin. For instance, Chinese firm Xinyuan has acquired huge stake in Filecoin mining by investing about $100 million. Likewise, Ninth City, which is a Nasdaq (NCTY) listed firm, has invested $12 million in Filecoin mining since February.
Two unnamed sources have stated that Chinese government is promoting Filecoin mining because of its decentralized nature as it suits Beijing’s plan to develop its own internet framework as a defense system in the prevailing “tech Cold War.”
In recent weeks, Filecoin has also entered into multiple collaborations, including fresh sources of liquidity. To begin with, back in December, Coinbase listed the FIL token. It was followed by the roll out of Filecoin Investment Trust by Grayscale.
Additionally, the Filecoin Foundation is also donating 50,000 FIL (valued at roughly $10 million) to the Internet Archive (archive.org). The donation is aimed to “support the mission of both organizations to preserve humanity’s most valuable data and improve access to information.”
China is crazy for Filecoin, with a 24h increase of more than 30%, reaching a maximum of $236. The 24h trading volume of FIL in Huobi, China’s largest exchange, reached $24.2b, nearly three times the volume of the second ETH $8.8b, Bitcoin was $7.8b. pic.twitter.com/LbKlTkfBqt
— Wu Blockchain (@WuBlockchain) April 1, 2021