According to market analysts, Filecoin’s recent 50% surge could signal the early stages of a broader crypto rebound, driven by renewed investor appetite for utility-focused blockchain assets. 

The decentralised storage token’s swift return above the $2 level has made it one of the standout performers in the DePIN (Decentralised Physical Infrastructure Network) sector - a niche category that has climbed roughly 11% in the same period.

Experts attribute the move to increasing network activity, ongoing developer support, and a shift towards projects offering tangible blockchain use cases. Still, they caution that sustained progress will hinge on Filecoin maintaining adoption momentum within its decentralised storage ecosystem amid a volatile market backdrop.

Key takeaways

• Filecoin leads crypto recovery: The token has risen more than 50% in 24 hours, outpacing major cryptocurrencies and fuelling broader DePIN gains.
  
• DePIN sector growth: Infrastructure-based crypto projects have advanced 11%, highlighting a shift in sentiment toward utility and scalability.
  
• Ecosystem support expanding: Protocol Labs’ RetroPGF Round 3 introduces 585,000 FIL in grants for developer projects between November 2024 and September 2025.
  
• Market valuation: Filecoin’s capitalisation sits at $1.52 billion, placing it firmly among the world’s 50 largest blockchain networks.
  
• Technical outlook: Holding above $2 strengthens the case for a retest of $3, a key short-term resistance level.
  
• Long-term view: Analysts identify Filecoin as a leading name in Web3 storage infrastructure and the decentralised data economy.
  

Filecoin leads the market’s structural recovery

Filecoin’s rebound aligns with a wider trend in digital assets: investors are rotating towards projects with measurable functionality, especially those underpinning blockchain infrastructure. Among these, DePIN networks have gained attention for linking physical resources - from computing and energy to storage - with blockchain-based reward systems.

The DePIN sector’s 11% rise marks a renewed focus on real-world blockchain adoption after months of speculative trading. Filecoin’s rapid climb above $2.00 reinforces its position as the flagship token in decentralised data storage and a bellwether for broader interest in practical blockchain applications.

Filecoin vs traditional cloud storage

Launched in October 2020 by Protocol Labs, Filecoin functions as a peer-to-peer data marketplace, allowing users to rent out idle hard drive space and earn FIL tokens in return. Unlike centralised providers such as Google Drive or Dropbox, Filecoin removes intermediaries entirely - leaving pricing, access, and verification to its decentralised network.

Its architecture relies on two complementary consensus mechanisms:

• Proof-of-Replication (PoRep): Confirms that storage providers keep authentic, unique copies of users’ data.
  
• Proof-of-Spacetime (PoSt): Verifies that data remains securely stored for the agreed duration.
  

These mechanisms together create a tamper-proof, transparent system, ensuring that data is both available and verifiable - a critical innovation for applications that demand permanent, decentralised storage.

Decentralised storage: From research to real-world impact

The story of Filecoin begins in 2014 with the launch of the InterPlanetary File System (IPFS) - a decentralised protocol by Protocol Labs designed to replace traditional file-sharing systems. Filecoin later became the incentive layer of IPFS, rewarding users who contribute storage space with crypto tokens.

Its Initial Coin Offering (ICO) in August 2017 raised $257 million, one of the largest token sales in history, with backing from Sequoia Capital, Union Square Ventures, and Digital Currency Group. The network’s mainnet launch in 2020 marked a major milestone, and Filecoin quickly gained global attention for its role in the Web3 ecosystem.

At its peak in 2021, FIL reached $236.97 before the market downturn. While far from those highs, the project’s ongoing technical development and growing developer community have ensured its continued relevance as a core component of decentralised data infrastructure.

Filecoin’s ecosystem expansion reinforces fundamentals

Beyond price performance, Filecoin’s ecosystem investment continues to grow. Protocol Labs’ RetroPGF Round 3 allocates 585,000 FIL to projects enhancing the network between late 2024 and September 2025, the most extensive round yet.

Previous rounds supported nearly 200 development teams, advancing decentralised storage, retrieval, and application-layer integrations. This focus on nurturing innovation strengthens Filecoin’s long-term sustainability and underscores its distinction from projects built solely on speculation.

Institutional investors increasingly view such initiatives as a sign of maturity - proof that the network is evolving beyond volatility into a self-sustaining Web3 infrastructure platform.

Can Filecoin’s bullish momentum extend to the $3 level?

Crossing the $2 threshold marks a significant milestone for Filecoin, both psychologically and technically. The next major barrier lies near $3, a level last seen in mid-2023. Sustained buying interest and rising volumes could support a move toward that mark if broader sentiment remains positive.

Despite recent gains, Filecoin’s market value remains down more than 90% from its 2021 peak, highlighting both the scale of prior corrections and the potential for upside if adoption continues. Experts suggest that this rally, unlike earlier speculative spikes, is grounded in genuine ecosystem progress and fundamental strength.

With its expanding market capitalisation and deepening integration into Web3 applications, Filecoin is becoming a cornerstone of decentralised infrastructure, bridging blockchain’s utility with practical data management.

Filecoin technical analysis

At press time, Filecoin (FIL/USD) trades near $2.12, continuing its upward trajectory after bouncing from the $1.36 support zone. Expanding Bollinger Bands indicate heightened volatility, while the RSI reading of 64.3 suggests growing momentum that could soon approach overbought territory.

The MACD line has crossed above the signal line, signalling ongoing bullish momentum. However, traders should remain cautious: as the histogram flattens, momentum could ease temporarily. The key upside targets stand at $2.28 and $2.57, while $1.36 remains the line in the sand for short-term support.

Those following Filecoin’s technical developments can view real-time price charts and indicators on Deriv MT5, which provides advanced analysis tools and CFD access to cryptocurrencies, forex, indices, and commodities.

Filecoin investment implications

For short-term traders, Filecoin’s breakout offers opportunities for momentum-based trades above $2, with profit targets near $3. However, high volatility demands strict risk management. The Deriv trading calculator can help traders estimate potential returns, margin requirements, and losses before entering positions - a key tool for navigating fast-moving crypto markets.

For longer-term investors, Filecoin remains one of the most utility-driven blockchain projects, combining decentralisation with tangible network use. Its consistent developer support, institutional interest, and relevance to the Web3 data economy strengthen its appeal as part of a diversified digital asset portfolio.

Nonetheless, competition from centralised cloud providers and rival decentralised storage platforms remains a long-term challenge. Filecoin’s continued success will rely on scalability, cost efficiency, and broader adoption across dApps and enterprise storage systems.

Trading Filecoin on Deriv

• Momentum trading: Monitor RSI and MACD crossovers on Deriv MT5 to identify short-term continuation signals above breakout levels.
  
• Range trading: When FIL consolidates between $1.80 and $2.50, traders can use the Bollinger Band boundaries to capture reversals.
  
• Breakout setups: A confirmed close above $2.57 could signal a new bullish phase, with volume spikes serving as confirmation signals.
  

By combining technical indicators with disciplined position sizing, Deriv traders can effectively manage volatility. Using the Deriv trading calculator further supports risk management by enabling traders to estimate their exposure before executing trades.

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