Filecoin (FIL) did not have the best quarter in terms of network performance, with the exception of growth in a few sectors. The broader market’s bearishness and the theory of “sell in May and go away” seem to have caused the decline in growth.
Filecoin Succumbs to Skepticism
A report released by Messari shows that Filceoin’s Q2 this year was somewhat disappointing. The report notes that Filecoin’s active storage deals declined 6% from the previous quarter. This resulted in storage utilization hitting 26%, only growing by 3% between April and June. In comparison, Q1 noted a 5% growth from Q4, 2023. This goes to show that while adoption did increase, it was significantly lesser.
Nevertheless, the total revenue from fees doubled in the second quarter, hitting $4 million, up from $2 million in Q1, 2024.
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In addition, the network observed the deployment of over 3,700 unique contracts. These deployments aided the growth of the total value locked (TVL) on Filecoin Virtual Machine (FVM), which hit an all-time high of $213 million in Q2. On the other hand, the altcoin’s price did not have a great quarter.
FIL’s Price Fails to Recover
FIL’s price dropped 55% between April 1 and June 30. Interestingly, the decline began at the start of Q2, with April absorbing most of the correction. Since mid-April, the altcoin entered consolidation until mid-June. Stuck between $6.3 and $5.2, the altcoin broke the consolidation in the second half of June, but for the worse. FIL slipped to test the support at $4.2 and has since been struggling to recover.
Investors and the market have been expecting a recovery in Q3. However, with a third of the quarter having already passed, no solid sign of a bounceback is visible. Over the past week, Filecoin’s price dropped by another 12%, bringing it to $4.0, intensifying the potential of a bearish quarter.
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