- ChatGPT disclosed Filecoin’s special use cases and bullish scenarios.
- FIL’s underwhelming short-term performance was in tune with the market despite its impressive Q2 performance.
Bitcoin [BTC], Ethereum [ETH], and a few other top coins definitely cast a huge shadow on other cryptocurrencies and their blockchains. Filecoin [FIL] is among the blockchain projects overshadowed by their bigger brothers. However, that has not taken away from its potential.
Is your portfolio green? Check out the Filecoin Profit Calculator
We decided to go through the AI route in our pursuit of wanting to find out what the future has in store for Filecoin. ChatGPT can be quite useful at times but it is not the most accurate either. So, our Filecoin-ChatGPT adventure had to have the right questions.
What are the special use cases of Filecoin?
This Filecoin ChatGPT query yielded multiple answers that elaborated upon the scope of its operations. Decentralized storage was the first and weightiest era, because it underscores the network’s main solution – a system that can offer a decentralized and immutable data storage solution. Here’s a look at other use cases.
Source: ChatGPT
In addition, Filecoin offers an ideal solution for content delivery networks, as well as file redundancy and backup. In short, the answers that we got from Filecoin’s ChatGPT enquiry were reasonable and legitimate.
After establishing that ChatGPT handled the question properly, we embarked on the next step – finding out what it could predict about Filecoin’s future. Previous experiences with the AI platform and future predictions have often been unsuccessful. But what if we could use a different angle?
In what scenario will Filecoin be successful in the future?
The answer we got to the above question was quite sensible. ChatGPT commenced by stating that the network is poised to achieve success under the right conditions. This is especially important, considering the promising nature of the decentralized storage segment.
Source: ChatGPT
Filecoin is still in the early stages of adoption, just as is the case with most other top blockchain networks. This means mass adoption and critical mass have yet to be achieved. However, the network has achieved significant progress so far.
A recent Messari report released earlier this month looked into Filecoin’s Q2 growth numbers. According to the report, the network’s storage market has been steadily growing.
This was confirmed by the number of active deals which grew by 64% (QoQ). Storage utilization was up by 4% in Q2 compared to Q1. The network also reported a 91% increase in revenue generated from fees during the same period.
State of Filecoin Q2’23 from @MessariCrypto is out 😆 Here’s the TL;DR.
1️⃣ Filecoin’s storage market grew in Q2’23, active deals ⬆️ 64% QoQ
2️⃣ Storage utilization grew 4.1% in Q1’23 -> 8% in Q2’23
3️⃣ Fee revenue increased 91% in Q2’23 (⬆️ 67% in USD)🔗 https://t.co/elVLH3yQlt pic.twitter.com/IEE2LKC0ZF
— Filecoin TL;DR (@FilecoinTLDR) July 18, 2023
Filecoin’s ChatGPT answers aligned with the growth that the network achieved in Q2. It is confirmation that the network is still headed in the right direction.
Filcoin’s marketcap at press time indicated an underperformance despite its impressive growth. It had a $1.9 billion marketcap, a fraction of its $3.58 billion marketcap peak earlier in 2023.
Source: Santiment
Note that the marketcap does not necessarily reflect the network’s growth. It is instead heavily influenced by the overall crypto market conditions and sentiment. But what about its price action? We decided to use ChatGPT to determine whether it will reach $100.
What does ChatGPT say about FIL?
The Filecoin ChatGPT price prediction inquiry did not yield a clear-cut answer, largely because it does not have access to real-time pricing data. However, it noted that there are multiple factors that affect prices.
The good news is that the network is one of the few that operate within its decentralized storage niche market. This is promising for the future of FIL.
As far as price performance is concerned, FIL traded at $4.33 at press time. A bit of a premium from its sub $3 lows recorded earlier in the year. However, its performance in the last four weeks underscored a lot of sideways action.
Source: TradingView
FIL’s MFI revealed that there had been significant liquidity outflows in the last four weeks. Meanwhile, both the MFI and the RSI were hovering within their mid-range at the time of writing. This zone is usually associated with some uncertainty.
However, the market might choose sides in the next two days, depending on upcoming data.
Read Filecoin’s [FIL] Price Prediction 2023-24
Filecoin’s on-chain data also revealed an overall improvement in development activity over the last four weeks. Nevertheless, zooming out revealed that development activity was notably lower now than it was a few months ago.
Source: Santiment
FIL’s onchain volume was within the normal monthly range at press time. This was a reflection of the low demand that prevailed for the most part in July.
