Filecoin has been lacking excitement related to a major move for quite a while but that might be about to change. The blockchain network is reportedly planning to expand to more offerings beyond the decentralized storage segment.
The Filecoin IPFS has been the company’s main business offering to clients but it is reportedly launching a new product called Filecoin Web Services. A Messari Report revealed that the move will allow the protocol to form a decentralized cloud marketplace, allowing it to venture deep into AI-centered products.
Such an expansion may allow Filecoin to broaden its revenue base while also improving demand avenues for the FIL cryptocurrency. According to the Messari report, the new offering will allow developers to access decentralize with more ease.
AI and decentralized physical infrastructure are some of the main narratives in the blockchain and crypto segment so far this year. The report highlighted Filecoin’s growing involvement in the segment especially through partnerships.
Assessing the State of Filecoin Utilization
Although Filecoin is expanding its offerings the network, its main service, of decentralized storage continued to experience healthy utilization. The level of storage utilization grew to 29.6% in Q3 2024 compared to 4.1% in Q1 2023.
The rapid pace of change was partly due to the decline in storage capacity. The latter dropped from 13.8 billion EiB to 5.4 billion EiB between Q1 2023 and Q3 2024. Nevertheless, the network experienced a significant surge in the number of large dataset clients.
The report revealed that the decentralized data storage protocol had 518 large dataset clients. These are clients that have subscribed to over 1,000 TiB.
FIL Bulls Struggle to Steal the Spotlight
Most of the top cryptocurrencies have been experiencing a surge in bullish activity in the last 2 months, FIL cryptocurrency has been struggling to find a bullish footing. The cryptocurrency traded at $3.59 at press time after tanking by 10.21% in the last 5 days.
The performance this week had erased most of the gains that FIL had attempted so far this month. The performance suggests that the cryptocurrency has not received much attention from investors.
A big reason for the above observation was that investors have been heavily aligned with key narratives in the market this year. This is why protocols that have exposure to memecoins, AI and DePin have been attracting more investor attention than their counterparts.
Will Filecoin’s attempt to tap into growth segments pay off? That may well be the case, but the benefits or impact will likely manifest in the longer term. Nevertheless, an expanding scope may aid in Filecoin’s competitiveness, and possibly have a bigger impact on FIL demand and attractiveness to investors.
