Filecoin (FIL) did not have the best quarter in terms of network performance, with the exception of growth in a few sectors. The broader market’s bearishness and the theory of “sell in May and go away” seem to have caused the decline in growth.
Filecoin Succumbs to Skepticism
A report released by Messari shows that Filceoin’s Q2 this year was somewhat disappointing. The report notes that Filecoin’s active storage deals declined 6% from the previous quarter. This resulted in storage utilization hitting 26%, only growing by 3% between April and June. In comparison, Q1 noted a 5% growth from Q4, 2023. This goes to show that while adoption did increase, it was significantly lesser.
Nevertheless, the total revenue from fees doubled in the second quarter, hitting $4 million, up from $2 million in Q1, 2024.
In addition, the network observed the deployment of over 3,700 unique contracts. These deployments aided the growth of the total value locked (TVL) on Filecoin Virtual Machine (FVM), which hit an all-time high of $213 million in Q2. On the other hand, the altcoin’s price did not have a great quarter.
FIL’s Price Fails to Recover
FIL’s price dropped 55% between April 1 and June 30. Interestingly, the decline began at the start of Q2, with April absorbing most of the correction. Since mid-April, the altcoin entered consolidation until mid-June. Stuck between $6.3 and $5.2, the altcoin broke the consolidation in the second half of June, but for the worse. FIL slipped to test the support at $4.2 and has since been struggling to recover.
Investors and the market have been expecting a recovery in Q3. However, with a third of the quarter having already passed, no solid sign of a bounceback is visible. Over the past week, Filecoin’s price dropped by another 12%, bringing it to $4.0, intensifying the potential of a bearish quarter.
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