Filecoin is being integrated into every major decentralized web project through the interplanetary file system (IPFS), the default solution to power non-fungible token metadata. However, its high token price of $180 and fully diluted valuation of $260 billion is a concern for investors. Early investors have seen insane profits, leading to a price crash during the 2021 bull market. Additionally, only 20% of the tokens have been released, meaning the circulating supply will get diluted over time. Despite these concerns, IPFS and decentralization are seen as promising areas for investment in the next cycle.
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Filecoin Integration in Major Decentralized Web Projects
You might not notice, but every major decentralized web project today is integrating Filecoin through the InterPlanetary File System (IPFS). The IPFS standard is like the HTTP standard but for Web3. IPFS is already the default solution to power NFT metadata. Every picture, video, and other rich media asset is stored on IPFS, the decentralized web and social narrative.
The Conviction Bet on Decentralized Web and Social Narrative
The decentralized web and social narrative are one of the biggest conviction bets for the next cycle. And if they become big, Filecoin will be the number one solution that gets integrated in every application. However, there is one major concern for Filecoin, and that is its tokenomics.
Concerns over Filecoin’s Tokenomics
At over $180 per token, Filecoin’s fully diluted valuation was as high as $260 billion. This meant that early investors had insane profits, which led to the price completely crashing during the 2021 bull market. Another problem is that only 20% of the tokens have been released, so the circulating supply will get diluted over time.
These concerns over Filecoin’s tokenomics raise questions about its long-term sustainability. Nevertheless, Filecoin’s integration into the decentralized web and social narrative remains a testament to its usefulness and potential if it can navigate these challenges.
