The digital storage industry has been dominated by Google Cloud and Amazon Web Services (AWS). That dominance is now being challenged by players who want to thrive on democratizing and decentralizing their infrastructure. This includes Filecoin, which has been able to navigate its way around the complexities of capital requirements.
The growing popularity of Filecoin stems from the fact that it fosters innovation, enhances privacy, and democratizes data storage. Google Cloud and AWS are well-established players in the industry, but their establishment is primarily based on the principle that fulfilling capital requirements gets someone to the top of the mountain.
Filecoin, on the other hand, relied heavily on token bootstrapping the independent service provider’s functionalities. The rise of Filecoin helps the sphere deal with the growing concentration in the hands of Google and Amazon well in advance. With Filecoin breaking down the barrier of capital requirements, the trend has paved the way for other players to enter the market. Some of them have already tried their hands in a separate segment. Helium is testing the waters in the Internet of Things and rendering compute power.
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The only downside is that the development has done little to no good for FIL, the native token of Filecoin. It has fallen by 9.54% in the last 24 hours, trading at $5.83 at the time of writing this article. The value has also dropped in the last 7 days and 30 days by 35.53% and 39.57%, respectively. Notably, there is no optimism in change when one considers the last 365 days, marking a slip of 7.33%.
Grayscale’s study has backed Filecoin’s rise in the digital storage industry. It further talks about web services being the largest sub-sector, with a size of 38%, followed by Oracle and Enterprise Applications at 28% and 13%, respectively.
As for Filecoin, the team has invited developers to get their projects featured on the Filecoin Ecosystem Explorer by the Filecoin Foundation. This gives developers the best opportunity to gain visibility and create engagement with the community.
Grayscale has also estimated that the upcoming Halving event, tentatively scheduled to happen on April 20, 2024, will significantly impact the cryptocurrency’s supply dynamics. Grayscale has hinted at a promising future for Bitcoin after Halving 2024. This comes in the wake of predictions that Bitcoin halving may only soften the fall in value and may not necessarily cause a massive surge as it has done in the past.
Bitcoin’s supply dynamics will shift as a result of reduced mining rewards and a decrease in the number of tokens in circulation.
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Filecoin is now aiming to achieve its mission of dominating the digital storage industry. It has been able to circumvent capital requirements via token bootstrapping. How it makes its way to the top will better set an example for other similar players.
