What is Filecoin, and how do you trade it?
What is Filecoin?
Filecoin is a decentralised storage network that allows anyone to rent out spare digital storage or buy space for their own files – all powered by blockchain technology. Developed by Protocol Labs, it launched its mainnet in October 2020.
Unlike traditional cloud storage, which relies on centralised data centres, Filecoin uses a distributed system backed by cryptographic proofs – proof-of-replication and proof-of-spacetime – to ensure files are genuinely stored and remain accessible over time.
The network runs on its native cryptocurrency, FIL, which is used to pay for storage, reward providers, and participate in governance. Storage providers earn FIL by offering reliable space and proving data integrity, while users spend FIL to store and retrieve their data in this open, decentralised marketplace.
How does Filecoin work?
Filecoin’s blockchain relies on two unique consensus methods: proof-of-replication (PoRep) and proof-of-spacetime (PoSt).
-
PoRep: ensures that storage providers store unique, non-duplicated copies of data, with each copy cryptographically verified as it is securely prepared for storage on the network.
-
PoSt: regularly checks that storage providers continue to store the unique copy over an agreed period, providing cryptographic proof of ongoing storage rather than direct confirmation of data accessibility.
Participants on the Filecoin network are divided into clients and storage providers. Clients pay storage providers in FIL to securely store their data, choosing providers based on cost, reliability, and proof performance. Providers earn FIL for offering space and consistently passing PoSt checks.
All storage deals and proofs are recorded on-chain for transparency. Filecoin also integrates with decentralised applications via the InterPlanetary File System (IPFS), enhancing efficiency and accessibility for users.
What’s Filecoin (FIL)’s price history?
Filecoin (FIL) saw rapid growth following its mainnet launch in October 2020, hitting an all-time high of $237.24 on 1 April 2021. This peak was driven by strong market enthusiasm for decentralised storage solutions and the broader crypto bull market at the time.
However, the crypto downturn throughout 2022 significantly impacted FIL’s price, pushing it into a prolonged bearish phase. From late 2022 onwards, FIL struggled to regain momentum, and gradually declined.
On 6 May 2025, FIL traded for approximately $2.59.
Past performance doesn’t guarantee future results.
What influences FIL’s coin price?
Filecoin’s (FIL) price may be influenced by several key factors, ranging from the adoption of decentralised storage to broader market sentiment and developments on its blockchain.
Demand for decentralised storage
Filecoin’s core utility is decentralised file storage. When companies or individual users increasingly turn to decentralised solutions for better security or cost-efficiency, FIL’s price may rise. However, decentralised storage adoption remains in early stages and faces strong competition from traditional cloud services, which currently hold the vast majority of the storage market share and often remain cheaper or more convenient. Consequently, demand for Filecoin could fluctuate, affecting FIL’s price.
Filecoin blockchain upgrades
Regular improvements to Filecoin’s network – such as the launch of the Filecoin Virtual Machine (FVM) in 2023, which enabled lending and staking, enhanced data retrieval speeds, new protocol features, or improved security – may attract more users and lift FIL’s price. On the flip side, delays, technical glitches, or security breaches could harm user confidence, potentially leading to a downturn in price.
Broader cryptocurrency market sentiment
FIL tends to follow general crypto market trends. Bullish phases in leading cryptocurrencies, particularly Bitcoin (BTC) or Ethereum (ETH), often lift Filecoin as investor optimism spreads across altcoins. Conversely, bearish markets or downturns in major cryptocurrencies usually weigh heavily on FIL’s price.
Regulatory developments
Changes in cryptocurrency regulations can significantly influence FIL’s value. Positive news, like clearer crypto regulations or supportive policies, might encourage investors, driving the price upwards. However, regulatory clarity is still evolving, and tighter restrictions or negative announcements could dampen investor enthusiasm and trigger FIL price declines.
Partnerships and mainstream adoption
New partnerships or integrations with prominent technology firms or projects could boost investor confidence, positively impacting FIL’s price. Filecoin also faces competition, not only from rival decentralised storage projects like Storj but also from dominant traditional cloud providers such as Alphabet (Google Cloud Storage) and Amazon (Amazon Web Services). Stalled adoption, lost partnerships, or intensified competition may negatively affect market sentiment, pulling FIL’s price down.
Discover third-party analysts’ Filecoin predictions in our FIL price predictions guide.
What are FIL’s trading hours?
Filecoin’s native token, FIL, trades continuously – 24 hours a day, seven days a week – since cryptocurrency markets never sleep. Unlike traditional financial markets, FIL trading doesn’t pause overnight or close for weekends and public holidays, so price movements can happen at any time.
-
Cryptocurrency exchanges – major crypto exchanges offer non-stop FIL trading, allowing continuous access to market opportunities.
-
Online trading platforms – trusted brokerage platforms offering CFDs on FIL typically allow trading close to 24/7, with short intraday breaks and limited weekend availability.
If you choose to trade CFDs, you can follow FIL’s real-time performance in US dollars with our comprehensive FIL/USD price chart.
Monitoring FIL price fluctuations to stay aware of market trends and potential trading opportunities as they arise.
How to buy and trade Filecoin (FIL)
You can buy FIL tokens directly on supported cryptocurrency exchanges or via peer-to-peer transactions. Once purchased, you’ll usually store FIL securely in a wallet that supports FIL tokens, such as software (online) or hardware wallets.
You can also trade Filecoin (FIL) using contracts for difference (CFDs). CFDs let you speculate on FIL’s price without actually owning the cryptocurrency. With a CFD, you enter a contract with a broker to exchange the difference in FIL’s price between the opening and closing of the trade.
CFDs allow you to trade whether you expect FIL’s price to rise (‘going long’) or fall (‘going short’). CFDs also offer leverage, meaning you can open larger positions with less initial capital. While leverage magnifies potential profits, it also increases exposure to potential losses.
Get ready to trade with our cryptocurrency trading guide.
