Disclaimer: The information presented does not constitute financial, investment, trading or other advice and represents the opinion of the author only.
filecoin [FIL] faltered near the familiar roadblock below $5, providing opportunities for short selling. Bitcoin [BTC]etherum [ETH], and a few other top coins definitely cast a huge shadow over other cryptocurrencies and their blockchains. Filecoin is among the blockchain projects overshadowed by its bigger brothers. However, this does not detract from its potential.
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We have decided to go the AI route in our quest to find out what the future holds for Filecoin. ChatGPT can sometimes be very useful, but it’s also not the most accurate. So our Filecoin-ChatGPT adventure had to have the right questions.
What are special use cases for Filecoin?
This Filecoin ChatGPT query yielded several responses that clarified the scope of its operations. Decentralized storage was the first and most important era, as it emphasizes the main solution of the network – a system that can offer a decentralized and immutable data storage solution. Here is an overview of other use cases.
Source: ChatGPT
Additionally, Filecoin offers an ideal solution for content delivery networks, as well as file redundancy and backup. In short, the answers we got from Filecoin’s ChatGPT survey were reasonable and legit.
After establishing that ChatGPT handled the question correctly, we moved on to the next step: finding out what he could predict about the future of Filecoin. Previous experiments with the AI platform and future predictions have often been unsuccessful. What if we could use a different angle?
In what scenario will Filecoin succeed in the future?
The answer we got to the above question was quite reasonable. ChatGPT began by stating that the network is on the verge of success under the right conditions. This is especially important given the promising nature of the decentralized storage segment.
Source: ChatGPT
Filecoin is still in the early stages of adoption, much like most other major blockchain networks. This means that mass adoption and critical mass have yet to be achieved. However, the network has made significant progress so far.
Source: ChatGPT
The AI bot expects FIL to hit $150-$200 by the end of the current quarter, a ridiculously high figure by all accounts.
A recent Messari report published in July examined Filecoin’s second quarter growth figures. According to the report, the network storage market has grown steadily.
This was confirmed by the number of active transactions which increased by 64% (T/T). Storage utilization increased 4% in the second quarter compared to the first quarter. The network also reported a 91% increase in fee revenue over the same period.
Status of Filecoin Q2’23 as of @MessariCrypto came out 😆 Here is the TL;DR.
1️⃣ Filecoin storage market increased in Q2’23, active transactions ⬆️ 64% QoQ
2️⃣ Storage utilization increased by 4.1% in Q1’23 -> 8% in Q2’23
3️⃣ Commission revenue increased by 91% in Q2’23 (⬆️ 67% in USD)🔗 https://t.co/elVLH3yQlt pic.twitter.com/IEE2LKC0ZF
—Filecoin TL;DR (@FilecoinTLDR) July 18, 2023
Filecoin’s ChatGPT responses are in line with the growth the network achieved in Q2. This is confirmation that the network is still going in the right direction.
Filcoin’s market capitalization at the time of publication indicated an underperformance despite its impressive growth. It had a market cap of $1.77 billion, a fraction of its peak market cap of $3.58 billion earlier in 2023.
Note that market capitalization does not necessarily reflect network growth. Rather, it is heavily influenced by general crypto market conditions and sentiment. But what about its price action? We decided to use ChatGPT to see if it will reach $100.
What does ChatGPT say about FIL?
The Filecoin ChatGPT price prediction survey did not yield a clear answer, largely because it does not have access to real-time pricing data. However, he noted that there are multiple factors that affect prices.
The good news is that the network is one of the few operating in its decentralized storage niche market. This is promising for the future of the FIL.
In terms of price performance, FIL was trading at $4.07 at press time. Although its Relative Strength Index (RSI) remained below the neutral level of 50, its Money Flow Index (MFI) held slightly above. Its On Balance Volume (OBV) showed a drop.
Source: IDF/USD, TradingView
Read Filecoins [FIL] Price Prediction 2023-24
As of now, it looks like the bears are going to beat down the bulls when it comes to Filecoin.
While ChatGPT is overly enthusiastic about Filecoin’s performance in the current quarter, its on-chain metrics do not encourage us.