Filecoin Dips 8% Despite Announcing March Date to Launch Ethereum-Compatible FVM Mainnet
Filecoin (Fil) price failed to rally despite plans to launch the Ethereum-compatible FVM (FVEM) mainnet on March 14.
The announcement conveyed via the network’s official Twitter hurdle failed to spur Filecoin. The update captured in the February 20 tweet restated the decentralized storage network’s plan to introduce smart contracts and user programmability to its blockchain.
FVM Launch Date Fuels Filecoin Rally
Filecoin has recently attracted the crypto community’s attention since revealing March 14 as the launch date for the native Filecoin Virtual Machine (FVM). The announcement grabbed the attention of the crypto community. Filecoin fuelled FIL price rally to 30% in the previous week.
Filecoin tweet echoed the decentralized network’s blog post that its community has completed the iconic hackathon. The success would allow the developers to initiate FEVM building.
The post disclosed that the developer community gave overwhelming support to Filecoin. It lauded ETHGlobal collaboration and developers’ support during the 21-days of running the FVM Space Warm that started on January 20.
The blog post published on February 17 clarified that FVM would retain interoperability with the Ethereum Virtual Machine (EVM). Its accomplishment would allow Filecoin to establish cross-chain bridges facilitating remittances of crypto funds across blockchain networks.
The post indicated that the cross-bridge would optimize the Filecoin network’s potential to run an open data economy.
Compatibility of EVM and Layer 2-based Blockchains
The compatibility of EVM and layer 2-based blockchains is set to lower the gas fees while expediting transactions. Filecoin targets to leverage FVM to foster its adoption among the decentralized finance (DeFi) community.
The post acknowledges that the layer-1 blockchain segment is experiencing fierce competition. Nonetheless, the decentralized storage network ruled out the rivalry to instead consider other L1 as collaborative. It projects FVM to facilitate and propel multiple use cases, including DataDAO, storage and DeFi.
A review of the market performance today shows that Filecoin failed to replicate the rapid rise in price despite the hype surrounding the FVM launch on March 14. In particular, FIL price rallied nearly 80%in a seven-day run prompting speculators to anticipate a continuous rise.
Filecone Rally Ends in a Dips
Today’s performance contradicted the experts’ prediction that the FIL price would rise continuously and exceed $12 during the FEVM launch date. At press time 15:59 UTC, Fil is exchanging hands at $8.38, translating to an 8.98% decline in the past 24 hours.
Fil had earlier in the day tested $8.23 and a high of $9.4 before retreating to hover around $8.38, as per Coinmarketcap data.
Today’s scrutiny of its performance shows Filecoin trading volume dipped by 9.25% to $1.22 million, with the total market capitalization declining by 10% to $3.2 billion. The downtrend shows a reversal of the previous week’s rally. It shows decreasing interest among Filecoin traders.
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