The price of Filecoin's native FIL token has rallied by more 40% in the past 48 hours, spiking from $53.538 to as high as $75 across major exchanges, reaching its highest point since Oct 2020.

FIL is now the 22nd-largest cryptocurrency, with a market capitalization of over $four billion. Yet, its circulating supply is 58 million, or only 3% out of a maximum total of two billion.

There are two possible reasons behind its uptrend, namely its fundamentals such equally the growth of its storage capacity and transaction volume in addition to interest from investors, exemplified by the addition of FIL by Grayscale.

Cameron Winklevoss, the billionaire Bitcoin (BTC) investor and co-founder of Gemini, showed optimism toward Filecoin and its contempo growth.

Around 8 hours afterwards Winklevoss's statement, Grayscale CEO Michael Sonnenshein appear the addition of FIL to Grayscale's lineup of investment products.

FIL/USDT 4-hour toll chart (Binance). Source: TradingView

Why is Filecoin growing so fast?

Typically, the growth charge per unit of a blockchain protocol can be analyzed using three metrics: developer activity, mining activity and transaction book.

The developer activity of a blockchain network is crucial for its long-term growth and overall investor conviction because a blockchain is a computing network and digital ledger at its core.

The mining activity of a blockchain network demonstrates the confidence of miners and the level of computing power behind the protocol.

Lastly, the transaction volume of a blockchain network indicates the level of user activity, which showcases the adoption of the protocol.

In recent weeks, Filecoin has seen solid growth across all of the three to a higher place-mentioned areas. Winklevoss noted:

"The corporeality of network storage power, agile miners, and Github contributors continues to grow on the Filecoin $FIL network. Non surprised to meet cost rocketing."
Filecoin network stats. Source: Twitter/Cameron Winklevoss

Meanwhile, the demand for scalable blockchains with larger capacity has risen due to the high fees on Ethereum and the increasing involvement in layer-two technologies.

This apply case is seemingly being recognized past investors. The accelerating footstep of Filecoin adoption and its growing market capitalization has likely contributed to Grayscale's conclusion to add FIL to the Grayscale lineup.

Information technology all coincides with a big spike in storage capacity

Filecoin differs slightly from other layer-one blockchain protocols in that it is a peer-to-peer network specifically designed for file storage with built-in economic incentives to ensure files are stored reliably over time.

On Feb. sixteen, Colin Evran, ecosystem lead at Filecoin, said that the Filecoin ecosystem reached ii.5 exabytes of storage chapters — a "pivotal moment" for the blockchain.

Filecoin reached ii.5 exabytes merely three months after surpassing 1 exabyte of storage in November 2020, equally Cointelegraph reported.

Evran said:

"The importance of an open, decentralized internet has never been greater. Reaching 2.5 exabytes of storage capacity is a pivotal moment for Filecoin and the wider Web 3.0 movement. Our global community has contributed its expertise, valuable insights, difficult work, and resources to build a robust foundation for humanity's nigh precious cognition."

In the nigh term, the main hurdle of Filecoin remains whether it can compete against the ascendant layer-ane blockchains to onboard decentralized applications and decentralized finance projects as it attempts to improve interoperability and scalability.