Filecoin price hits 6-month high after gaining 26% – here’s why

• Filecoin (FIL) has rebounded amid news of the upcoming network development.
• The FIL token saw its price reach as high as $7.89 on Coinbase.
• According to a press release on Friday, the Filecoin Virtual Machine (FVM) will be launched on March 1, 2023.

Filecoin surged to its highest price level since August 18, 2022 on Friday, with a whopping 26% rally on the day, sending FIL tokens to $7.89 on major cryptocurrency exchange Coinbase.

The gains for the decentralized storage network follow a recovery that started with a 5% rally on Tuesday, February 14th. Prior to that, the reversal in market sentiment pushed FIL/USD down nearly 13% on February 9, with the token depreciating to close at $4.78.

While it is not possible to predict Filecoin’s price with certainty, let’s see what potentially stimulated today’s stellar run.

What is behind Filecoin price hike today?

Filecoin price has already seen a massive rally in the past two days, as it breached the key resistance around $6.00.

It seems that the main driver for today’s rally was the news that Filecoin Virtual Machine will go live on March 1st.

the #FVM It is almost here and it will change the industry like never before. ☄️

Prepare for everything FVM unlocks with smart contracts and provable storage. Join us for the biggest community event of the year on March 1st. ⤵️ https://t.co/zviY8FZwCx pic.twitter.com/MCYC5CGoA6

– Filecoin (Filecoin) February 13, 2023

Benefits of FVM for the Filecoin Network

According to the Filecoin developer team, the launch of the FVM will usher in a new era for the Filecoin blockchain.

Specifically, the layer-1 network will see a polished system featuring smart contracts and programmability. FVM also comes with more scalability and much lower fees for users looking to interact with decentralized applications (dApps.)

The main use cases that are set to drive more Filecoin blockchain traffic and put it on the path towards greater adoption are persistent storage, streamlined access to decentralized finance (DeFi) and DataDAOs. The Filecoin Virtual Machine is interoperable with the Ethereum Virtual Machine.