According to CoinMarketCap data, Filecoin token FIL rose sharply Friday. This spike fueled social media excitement over the March 1 launch by the Filecoin Virtual machine (FVM) software platform. It will allow developers to create decentralized applications on the Filecoin blockchain and introduce smart contracts.
At midnight ET (05:00 UTC), the coin’s value soared to $5.38, and then reached $7.82 by 5 p.m. ET (22:00 UTC). FIL traded at $7.35 as of the publication date, an increase of 36.7%
It was not immediately clear what caused the rally.
Twitter user Colin Wu tweets under the username Wu Blockchain and created buzz about the topic Sharing news about the pump Along with information about the network’s upcoming smart contract launch, he sent it to more than 250,000 of his followers.
FVM’s addition of Filecoin to the network will make it a fully-fledged layer-1 blockchain.
FVM was announced by the network at the FIL Singapore conference in September. It promised that the platform would allow users to program a variety of applications, including perpetual storage, replication and repair automation, liquid staking and block rewards, and even liquid staking. It also supports the creation decentralized autonomous organizations (DAO) that are data-centric. This would allow for pay-per-view transactions as well as the creation Web3 games.
FVM will work with the Ethereum Virtual machine (EVM) and Filecoin can create cross-chain bridges that allow crypto funds to move between blockchain networks. Filecoin hopes that its compatibility with EVM layers 2 and 3 blockchains will reduce user gas fees, increase transaction speed, and encourage decentralized finance (DeFi), to adopt it.
In the wake of several major collapses of cryptocurrency firms, DeFi projects have gained a strong following, including the development layer 1 blockchain protocols.
CORRECTION (Feb. 17, 20,23 22:50 UTC: FIL price increased between midnight and 5:50 p.m. Eastern Time, not UTC.