Filecoin surges past $70, possibly due to end of June release and institutional entry

Filecoin, once jokingly called a "stable currency," has seen a recent price increase, with a weekly increase of 57%. Wu said the blockchain learned that the core reason may be that all six-month Fil tokens of SAFT investors will be linearly released on April 15.

The "FIL reduction" circulating on the Internet is fundamentally different from the actual release. The circulation of FIL tokens on the Filecoin network comes from preset release and storage mining. The preset release rules of SAFT investors are roughly: 22% for 6-month release, 15% for 1-year release, 5% for 2-year release, and 58% for 3-year release. Early SAFT investors probably have 150 million FIL. According to the ratio, in the first 6 months after the launch of the Filecoin mainnet, the monthly release of SAFT investment is about 10.1 million; from 6 months to 1 year, the monthly release is reduced to 4.6 million; in the second year, the monthly release is reduced to 2.7 million; in the third year, the monthly release is reduced to 2.4 million. So the so-called "FIL reduction" is actually a reduction in SAFT release, from 10.1 million per month to 4.6 million. In addition, according to FILscout data, Filecoin computing power continues to grow, currently at 224.3PiB, the highest point in the past six months.

Wu said blockchain analyst Liu Quankai believes that for the market, after April 15, the reduction in release is equivalent to reducing the selling pressure of FIL. The expectation of reduced release and the increase in computing power have pushed the price of FIL to strengthen. On the other hand, there may also be demand from institutional investors to buy FILECOIN. Filecoin is not only listed on Coinbase, but also on Grayscale's list of pending sales. In addition, due to the shortage of Bitcoin and Ethereum mining machines, more Chinese institutions that want to participate in mining also choose Filecoin as a third choice. Due to the policy ambiguity of cryptocurrency in China, more institutions and capital that want to participate choose mining.