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Filecoin gains 40% in 48 hours: What’s driving the massive FIL price rally?

FIL, the native token of the Filecoin ecosystem, rallied by 40% in the past two days, catalyzed by two likely factors.
The price of Filecoin (FIL) has rallied by more than 40% in the past 48 hours, spiking from $53.538 to as high as $75 across major exchanges, reaching its highest point since October 2020.FIL is now the 22nd largest cryptocurrency with a market cap of over $4 billion. However, its circulating supply is 58 million, or just 3% out of a maximum total of two billion.There are two possible reasons behind its uptrend, namely its fundamentals such as the growth of its storage capacity and transaction volume as well as interest from investors, exemplified by the addition of FIL by Grayscale.Cameron Winklevoss, the billionaire Bitcoin (BTC) investor and co-founder of Gemini, showed optimism towards Filecoin (FIL) and its recent growth.Around eight hours after Winklevoss’s statement, Grayscale CEO, Michael Sonnenshein, announced the addition of FIL to Grayscale’s lineup of investment products.FIL/USDT 4-hour price chart (Binance). Source: TradingView.comWhy is Filecoin growing so fast?Typically, the growth rate of a blockchain protocol can be analyzed using three metrics: developer activity, mining activity and transaction volume.The developer activity of a blockchain network is crucial for its long-term growth and overall investor confidence because a blockchain is a computing network and digital ledger at its core.The mining activity of a blockchain network demonstrates the confidence of miners and the level of computing power behind the protocol.Lastly, the transaction volume of a …
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