Upon deploying the v1.32.2 network upgrade at block height 4,878,840 on Monday, April 14, the wave of attention for Filecoin (FIL) is back.
The update, which is required for all nodes, brings fundamental changes to the network’s architecture and has sparked speculation around a potential surge in FIL’s market valuation.
About Filecoin’s Latest v1.32.2 Upgrade
Other than these points, the upgrade is based on multiple Filecoin Improvement Proposals (FIPs) addressing such technical pain points. FIP-0097 is among the most notable for bringing transient storage features inspired by Ethereum’s EIP-1153. In this update, the computational and gas costs for smart contract execution are reduced by this update, as they resource the Filecoin Ethereum Virtual Machine (FEVM).
As a result, it makes the environment more developer-friendly: cleaner, devoid of resources. Moreover, it is expected to boost the decentralized application (dApp) activity which is related to the demand for FIL.
Meanwhile, FIP-0098 addresses the issue of termination fees. Beforehand, there was more variability in penalties to storage providers but these are now implemented through a simplified fee structure in the form of a fixed proportion of the initial pledge. This change is meant to make it less burdensome for providers to enter the network and to be able to participate more easily in the network.
Finally, the network also has access to FIP-0100, which removes Batch Balancer and replaces it with a per-sector gas fee model. It is reconfigured to relieve transaction congestion in the network and allows for smoother, more predictable interaction across the network. Noting that the upgrade also turns on one new feature called F3, which shortens the time needed for received transaction finality.
The increased speed of confirmations makes Filecoin to be more suitable as a reliable and fast decentralized storage. Further, there has been extensive transformation in the ecosystem. USDFC stablecoin, attached to the Filecoin and deployed on the mainnet, was launched with the aim of achieving liquidity stability.
The stablecoin is gaining visibility as it enters its first phase of Alpha in March and is listed on Sushiswap, DeFiLama, and CoinGecko, as reported earlier. The cushioning of FIL against extreme price swings may attract institutional interest to its presence.
Moreover, partnerships also play a major role. Mira and Storacha are using Filecoin for AI needs of projects. Moreover, Akave Cloud is plugging decentralized storage with enterprise systems through Snowflake integration.
What’s Next For FIL Price?
From a technical perspective, the FIL price is right now located just right above the $2.536 resistance zone, trading at $2.57. Historical data suggests that this price level has been a barrier for trading cycles before. The current 24-hour range, between $2.46 and $2.57, places FIL on the edge of a potential breakout.
If bulls can sustain a move above this resistance with strong volume, it could result in an upward acceleration. Nevertheless, if it does not stay in momentum, a short-term retracement is possible. However, despite that, the network’s upgraded fundamentals might cap the decrease.