Filecoin (FIL) becomes 9th largest crypto

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Decentralized storage network Filecoin (FIL) has seen increased institutional demand, as the token is now in the top ten crypto rankings in terms of market cap.

FIL hit an all-time high of $220 on Thursday, but it has since contracted to $217. That’s still a huge gain, considering that the cryptocurrency has surged by 150% within the past week and by 42% within the past 24 hours.

The majority of the inflows for the token were from Grayscale Investments, the largest investment fund in the world.

Big demands coming from China

Filecoin is a blockchain platform that allows its users to rent unused hard drive space and retrieve data.

Analyst have pointed out three factors that could have led to the huge demands for FIL in recent weeks: the uniqueness of the platform compared to Ethereum (ETH), rising demand from China, and technical momentum

With 63 million FIL tokens in circulation, as well as over a billion tokens to be remitted in the future, FIL’s market cap today is now worth a massive $543 billion. That’s about 0.12% of the global wealth, based on the world’s total wealth report by Swiss Bank Credit Suisse.

Increased Institutional demand for Filecoin (FIL)

Institutional investors have preferred Grayscale over other options when it comes to investments in cryptocurrencies. The fund is not about to relinquish its number one position in the world yet, as it keeps attracting more investors.

Last month, Grayscale set up trusts for Decentraland (MANA), Chainlink (LINK), and Basic Attention Token (BAT) to expand its existing products.

Cryptocurrency asset manager, Bitwise, stated in a tweet that Filecoin has entered the Bitwise 10 Large Cap Crypto Index.

The platform works like Snowflake, which executed the largest ever software IPO last year.

Most of the hype about Filecoin is coming from the benefits derived from a similar platform Snowflake. Most investors believe Filecoin even has the potential of doing better in the coming months.

The post Filecoin (FIL) becomes 9th largest crypto appeared first on Invezz.

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