The “decentralized storage” war has continued over the years as more developments around this space came to life. Many teams like Filecoin, Storj, Sia started building open source solutions in late 2016 and early 2017 after recognizing the latent opportunity.

Incidentally, another decentralized storage facility Arweave jumped on the bandwagon in 2018. It launched a mainnet with the aim of ‘permanent storage’. Gradually, the competition between Arweave and Filecoin took center stage.

But are two contenders ready to do battle?

Both Filecoin and Arweave enable decentralized, trust-minimized, censorship-resistant data storage for long periods of time. Either for archival purposes or real-time applications such as website hosting. At first glance, both look very similar.

However, it is important to note that Filecoin’s economic model mirrors that of centralized cloud providers: contract-based storage. Arweave, on the other hand, launched an entirely new economic model. One that was never possible without permission before the advent of crypto networks: permanent storage.

Arweave charges a single fee for storing data indefinitely, while other protocols keep it as long as the users pay for it.
The flagship protocol took three years to go from 0 TB to 10 TB of stored data, but in the past six months, the amount of data stored grew by more than 40 TB.

Source: Token terminal

On the other hand, Filecoin was also able to attract significant storage capacity. According to Messari’s March 30 report, Filecoin’s dedicated storage capacity rose steadily to over 16,000 PiB. This was “equivalent to about 65,000 copies of Wikipedia or 1,600 Netflix movie archives in March 2022,” the report added.

The network capacity comes from more than 3,900 decentralized storage providers located around the world.

Source: Messari

Well, for context, 1 Terabyte (TB) = 0.00088 Pebibyte (PiB).

In addition, the valuation of the old protocol in relation to fee income was certainly striking. At the time of going to press, there was a 3,000x growth. This was relatively high compared to other projects listed on Token Terminal.

The chart below shows Arweave’s price-to-sale ratio, which is its fully diluted market cap divided by its annual fee income.

Source: Token terminal

This may also indicate a bullish case,

“The high multiple could be interpreted as investors expecting significant (fee income) growth for Arweave in the near to medium term, so they are comfortable paying a small premium today.”

The native token, AR, did indeed enjoy this bullish sentiment. According to CoinMarketCap, the token rose 5% in just 24 hours. At the time of writing, it was trading above USD 40.

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