Making price predictions about a specific token is a huge challenge. Everyone hopes to find the next Bitcoin, but there are many others that have risen only to fall off. Though none are likely to topple the king of crypto, there are others that could become more than viable investment opportunities.
Filecoin has shown tremendous promise as a decentralized storage network. Experts looking for a Filecoin price prediction feel that things will be trending upward in the coming years. What will Filecoin’s price look like in five years? Let’s take a deeper dive.
Filecoin Price Prediction for 2030
Trading at a current price of roughly $2.34 per token, Filecoin experts believe that it could be part of a largely bearish cryptocurrency market. Though a lot can happen in five years, the future looks promising when it comes to Filecoin’s price when 2030 rolls around.
Experts believe that the coin could be trading at close to $13 per token at the beginning of 2030. It should see a sharp rise throughout the year, gaining momentum before ultimately finishing in the $17.75-$21.50 range per token. Even settling at an average of $18.50 per token would be a massive increase.
Factors That Impact Crypto Prices
While there are factors that specifically apply to Filecoin and its ability to rise, there are inherent factors that lay as challenges. These are the factors that challenge any cryptocurrency, not just Filecoin.
Adoption
Perhaps the biggest hurdle for cryptocurrencies is general adoption. We are seeing the major name in the market – Bitcoin – being adopted by more than just retail investors. On a growing basis, investment firms, companies, and even governments are taking a greater interest in crypto holdings.
When that happens, it can provide a major boost for that token. General adoption is a major reason why Bitcoin has continued to gain value and deal with far lighter declines than in recent history. The more commonly accepted a token is, the better news it is for that token’s price.
Regulatory Actions
Another major hurdle for the cryptocurrency marketplace revolves around regulatory challenges. One of the things that makes crypto such a volatile marketplace is because there is still relatively little in the way of regulations over the industry.
The current Presidential administration has been very pro-crypto, which bodes well for future prices. As more regulations that favor the market come into play, it strengthens the confidence of investors. With more regulatory oversight, there is stronger faith on the part of investors, making cryptocurrency a more trustworthy avenue.
Central Banks
Central banks are disconnected from cryptocurrency in that it can no longer control them. That said, central banks are proving to have a huge influence on the price of certain tokens. Bitcoin is a great example of this as more central banks are getting involved in cryptocurrency through the adoption of Bitcoin.
Central banks can also impact the price of crypto through its interest rates. When crypto rises, the Fed typically lowers interest rates while the inverse happens when prices fall. Because crypto is something of a new asset compared to traditional stocks and bonds, it is too early to tell how big an impact central banks have on altcoins.
Economic Performance
Compared to more traditional investments like stocks and bonds, cryptocurrencies are considered to be a high-risk investment. Because of that, the market can rise and fall at levels that don’t typically happen in the aforementioned investment types.
When the market is thought of as doing well or anticipated to do well, altcoins can do well. When economic challenges arise, however, investors are far less likely to invest in a riskier asset. Bitcoin is attempting to be the anomaly but tokens like Filecoin face those inherent market challenges.
World Events
The world is an uncertain place and that can have an impact on cryptocurrency prices. We have seen recently with several major events – the spread of COVID-19, the invasion of Ukraine by Russia, and the growing hostilities between Israel and Iran – that these happenings can impact the price of cryptocurrencies.
In times of uncertainty, investors tend to become more conservative. They eschew high-risk investments (like crypto) in favor of something more secure. How major tokens like BTC hold up in the face of major world events will be a good indicator of how crypto can perform when there are times of uncertainty.
Why Investing in Filecoin is a Solid Move
Investors are constantly seeking the next strong play. Filecoin has a stronger base than most other altcoins, so it isn’t exactly coming out of left field. That said, there are a few reasons why investors continue to get behind the altcoin.
For starters, it has a competitive advantage. With so many different crypto platforms out there, Filecoin stands apart as a decentralized data storage solution. Compared to more traditional data storage options, it gives Filecoin a leg up.
The innovation behind its technology is also a major strongpoint. It is a more novel approach when it comes to data storage, which could lead to greater adoption. Finally, the growing demand – especially with the need for decentralized storage options – makes Filecoin’s services more relevant by the day.
All of these factors make it a seemingly sound investment. With positive regulations coming down the pike and a generally strong outlook for the crypto marketplace, things are looking up for Filecoin.
A Promising Future for Filecoin
As a decentralised storage network, Filecoin has a unique piece of the cryptocurrency market. Its native token, FIL, stands to benefit from that. Where it will settle remains to be seen, but its future remains bright.
Pundits and experts will be watching closely to see how the marketplace reacts. With things trending upward, Filecoin stands to benefit and provide its investors with major growth that few other coins could hope to achieve.
