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Filecoin project continues to grow, Bitmain launches FIL-specific mining machines

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Filecoin project continues to grow, Bitmain launches FIL-specific mining machines

The decentralized storage protocol Filecoin continues to grow, with active trading volume increasing by 64% compared to the previous quarter, and protocol revenue growing by 91%. Even mining company Bitmain has launched Filecoin-specific mining machines this month, priced at $38,888 each.

Early Hit Project Filecoin

The goal of Filecoin is to create a distributed storage network. In 2017, during its ICO, it raised $257 million in just one hour, making it an early hit project in the cryptocurrency circle. The project's investors include DCG, a16z, Sequoia Capital, and other well-known venture capital firms. Filecoin introduced a token (FIL) incentive mechanism to motivate users and drive broader adoption. Users pay miners to store files or data on the network, and miners earn tokens as rewards by fulfilling storage requests from clients. Miners' mining capacity is directly proportional to their active storage capacity, incentivizing miners to collect and rent out as much storage space as possible.

According to the latest report released by Messari, Filecoin's storage market continued to grow in the second quarter of 2023, with active trading volume increasing by 64% compared to the previous quarter. Protocol revenue increased by 91% (reaching $11.5 million in USD revenue this quarter, a 67% increase from the previous quarter). However, supplier revenue decreased by 6.4%, totaling $85.7 million in USD, a 16.3% decline from the previous quarter. The report attributes this to an overall decrease in FIL incentive issuance, a trend that may continue over the next few quarters.

However, Messari believes that decentralized storage is still in its early stages, with signs of potential growth emerging. The successful adoption of Filecoin's Virtual Machine (FVM) may enable the next generation of applications to surpass storage functions. Outstanding examples include permanent storage similar to Arweave, collateralized loans offered to storage providers, and decentralized computing. If Filecoin continues to meet demand, it has the opportunity to become a prominent provider of decentralized storage and cloud services for Web3 and traditional applications.

Bitmain Launches FIL-Specific Mining Machine

According to previous reports, China has been hyping Filecoin mining since 2018. Andy Tian, co-founder of mining equipment manufacturer "1475," mentioned that although Filecoin mining is much more technically complex, using "hard drives" instead of specialized mining machines like Bitcoin ASICs may be easier for retail operators to understand.

Mining company Bitmain recently launched a Filecoin mining machine, marking its first foray into Filecoin mining. Priced at $38,888 each, the machine has a hash rate of 4,300 T, with a minimum monthly staking service fee of 0.5%.