- Filecoin has recovered in the last week. It’s up 19.4% over the day.
- The surge comes following a shift in sentiment in the cryptocurrency market despite mounting macroeconomic tensions.
- Traders remain divided on whether or not the market bottom is.
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Filecoin’s FIL is up 19.4% today.
Filecoin jumps on the market rally
Filecoin is outperforming the rest of the cryptocurrency market.
The decentralized storage network FIL token is up 19.4% today, outstripping most major crypto assets like Bitcoin and Ethereum. Many other tokens, including Polkadot’s DOT and Kusama’s KSM, also saw a rise, although Filecoin is today’s strongest performer in the top 100 of the cryptocurrency chart. According to data from CoinGecko, it is currently trading at $ 9.90, up 75% from last week.
The rise comes during a volatile period in the cryptocurrency market. Prices have been falling for months amid macroeconomic tensions, market exhaustion and the collapse of giants like Terra and Three Arrows Capital, but the market began to show signs of recovery in July. Last week, the Federal Reserve raised interest rates by another 75 basis points, while the Bureau of Economic Analysis revealed that the US economy had shrunk for the second consecutive quarter, signaling the start of a “technical recession. “. While such developments are generally seen as bad for risk-on assets, the cryptocurrency market skyrocketed last week, suggesting that the market may indeed have priced the macro uncertainty.
The cryptocurrency market rebounds
Bitcoin ended July positively after a brutal May and June, posting its best monthly performance since October 2021. Meanwhile, Ethereum has taken the lead in the market in recent weeks amid mounting expectations for its major “Merge” event. tentatively scheduled to go live in mid-September. As Bitcoin and Ethereum go up, liquidity tends to flow towards other cryptocurrencies with lower market caps, which is partly what has allowed the likes of Filecoin to rise as confidence returns.
It is interesting to note that some of the best results were those related to the so-called “Merge trade” of Ethereum. The Ethereum Classic ETC, for example, jumped 44.4% in the past week, likely because the narrative surrounding its Proof-of-Work consensus mechanism has strengthened (the Ethereum fork will continue to use Proof -of-Work after its most famous shifts on Proof-of-Stake), leading to soon redundant Ethereum miners pouring into the network. LDO, the governance token for the Lido liquid staking protocol, is up 31.3% over the same period.
With many crypto assets showing bullish strength, some market participants have raised doubts that there may be “the bottom,” a term cryptocurrency enthusiasts use to refer to the lowest price point of the bearish cycle, but traders they remain divided. While some of the top Crypto Twitter traders claim the fund is in, other to say are bearish due to the macroeconomic environment and the nature of previous bear markets (if Bitcoin and the rest of the market recover for the rest of the year, the recent crash would be the shortest bear market in cryptocurrency history).
The global cryptocurrency market capitalization is currently around $ 1.1 trillion, around 63.3% lower than its peak in November 2021.
Disclosure: At the time of writing, the author of this piece owned ETH and several other cryptocurrencies.