Decline and especially depreciation was the story of the Filecoin [FIL] until we reached the third quarter of 2022. Interestingly, the decentralized storage network recorded the first positive revenue growth since the HyperDrive upgrade.

Recall that the HyperDrive upgrade took place in the second quarter (Q2) of 2021 to expand Filecoin storage onboarding. Unfortunately, FIL hadn’t had much success in sales growth until now revelation by Messari, a leading provider of crypto market intelligence.

Filecoin did not witness any traction in Q1 and Q2 of 2022 due to extreme uncertainty looming around the entire cryptocurrency market. However, as per Filecoin’s latest report, it grew 9% in protocol revenue in Q3. This growth led to a $1.8 million increase and as such, more fees were generated from the token holders’ transactions.

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Here’s AMBCrypto’s Filecoin Price Forecast for 2022-2025

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Here ahead; can’t take a break there

Despite the breakthrough, Filecoin was not able to advance in all ramifications. According to the same report, the Filecoin network was unable to eliminate the decline in supply-side revenues, which fell by 4%.

Source: Messari

In addition, Filecoin appears to have met the upgrade’s goals as storage usage grew six-fold year-over-year (YoY). This increase also spread its effect to other parts of the FIL network.

For context, the sixfold growth helped Filecoin provide more block rewards for storage providers. In turn, FIL storage deals were up 82% compared to the last quarter.

Source: Messari

At its price point, FIL didn’t seem ready to leave its dismal Q3 performance behind. At the time of writing, the altcoin had shredded 3.39% in the past 24 hours while trading at $5.06. According to CoinMarketCapthere was no contrasting position by volume, which decreased by 40.56% within the same time frame.

Will FVM change momentum?

After the HyperDrive upgrade, Filecoin can look forward to the FVM integration. According to the FIL team, FVM would enable computation and programmability on the Filecoin network. While the FVM testnet is slated for November 2022, Santiment revealed that preparations for the event may have begun.

Based on data from the on-chain analytic platforms, FIL’s development activity also witnessed a surge. Despite falling to 46.11 on Oct. 14, it bounced back to a rise at press time to a value of 49.67.

In other respects, FIL registered some big steps on October 3 and 12 because of his social dominance. However, interest and discussions around the coin seemed to have waned as social dominance remained at 0.013%.

Source: Santiment

On the charts, it seemed that FIL was less concerned about: breaking out of the bears. But would the upcoming FVM testnet and launch play a part in creating better fortunes?

According to the exponential moving average (EMA), FIL appeared destined for further bearish momentum in the near term. This was because the 50 EMA (yellow) held a position above the 20 EMA (blue). Although FIL investors could find the clues from the 200-week EMA showing bullish signs over the long term.

Source: TradingView





This post Filecoin: Will This ‘First Time’ Success Lead FIL Towards a Bullish Future?

was published first on https://ambcrypto.com/filecoin-will-this-first-time-success-lead-fil-towards-a-bullish-future/

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