- Filecoin’s revenue fell in the third quarter.
- In the currency’s derivatives markets, participants remained optimistic.
Leading decentralized storage network Filecoin [FIL] In the third quarter, Messari saw a 60% drop in protocol revenue report.
Read Filecoin’s [FIL] Price forecast 2023-24
According to the on-chain data provider, Filecoin’s revenue decline between July and September was due to a “general decline in demand-side revenues in the decentralized cloud storage space” during that period.
The Filecoin network is used to store data by both the demand side (storage users) and the supply side (storage providers).
On the demand side, storage users can create storage deals on Filecoin, specifying the amount of data they need to store, the duration of storage, and the price they are willing to pay.
Additionally, Filecoin requires storage users to pay certain fees in the protocol’s native token FIL. These fees incentivize storage providers to store data reliably and prevent the network from being spammed.
On the supply side, storage providers can register their storage capacity on the Filecoin blockchain and then bid on storage deals to offer their storage capacity to storage users.
According to Messari, Filecoin’s base demand-side rates (the minimum rates paid to store data on the network) fell by 72% during the reporting period. The analysis further noted:
“In line with the decrease in base fees, all other FIL fees that accrue to protocol revenue (penalties, batch and overestimation fees) decreased on a quarterly basis.”
Between July and September, Filecoin’s protocol revenues totaled $14.8 million, down 15% from the $17.6 million recorded in the second quarter. Filecoin’s supply-side revenues, measured in FIL, also plummeted. Messari found.
“FIL supply side sales fell 16% in Q2 2023 to FIL 14.8 million (down 34% in USD). The decline was driven by an overall reduction in FIL reward issuance due to the exponential decay model and especially the base currency model.”
Source: Messari
During the reporting period, Filecoin’s supply-side revenue from block rewards, storage deal payments, and tips to speed up transactions totaled $800,000, down 68%.
State FIL
At the time of writing, FIL was exchanging hands at $3.80. Benefiting from the general uptrend in the market over the past 24 hours, FIL’s value has increased by 9% over the past 24 hours, according to data from CoinMarketCap.
How much are 1,10,100 FILs worth today?
With an 18% increase in value in the past week, FIL’s open interest in the derivatives market has increased. Worth $99 million at the time of writing, it’s up 32% in the past three days, data shows Mint glass showed.
Source: Coinglass
As the market was significantly marked by positive funding rates at the time of writing, participants continued to open trading positions in favor of a price rally.
Source: Coinglass
