The rise of Ordinal in Bitcoin (BTC) has sparked a debate about how users store their NFTs and blockchain game projects and are looking for cheap and secure ways to store their data. So it’s time to revisit the debate about decentralized storage coins.
Decentralized storage protocols Filecoin (FIL) and Arweave (AR) have shown similar price moves, with investors showing signs of increased adoption by NFT users and blockchain gaming projects, with the underdogs and market prices Faced with a decision between the total amount and the clear leader in hiring.
Today the entire digital storage cryptocurrency landscape has a market capitalization of $4.87 billion. According to data from CoinMarketCap, and each protocol offers something different. His two projects with the largest market capitalization in this space that specifically address the storage needs of NFTs and blockchain games are Filecoin and Arweave. Filecoin is currently the top ranked project in this space. Although ranked #27 by market capitalization on CoinMarketCap, Arweave has significant on-chain activity and fundamental news worth noting.
The main difference between projects is their focus. Arweave focuses on long-term data storage with a one-time payment model, while Filecoin focuses specifically on incentives for large-scale storage of private data, tiered based on demand for storage time and space. We use a competitive payment model.
Filecoin recently announced that it will Start smart contract, cementing its new position as a Layer 1 platform. This development has led to speculation about Filecoin’s future success in deploying Web3 offerings with real-world services such as compute and storage, supported by Filecoin’s open marketplace for decentralized storage.
Given the current volatile cryptocurrency and macro environment, Filecoin’s earnings are noteworthy at $2.53 million per month (238x in 30 days). Over the same period, fees rose by 33% ($2.99 million), indicating strong demand for the platform. FIL has a market cap of $2.76 billion, up 14% over the same period.
I do not know that $FIL I had $2.5 million in monthly revenue, but it’s not showing up on DefiLlama pic.twitter.com/jhVyTRNjTQ
— Nagato (@NagatoDharma) March 12, 2023
Filecoin has a maximum supply of 2 billion tokens and a circulating supply of about 403 million. 70% of the total supply is dedicated to mining rewards and will increase as the network adopts. The rate at which new tokens are created will decrease over time as the network matures.
By comparison, Arweave has a much smaller market cap of about $441 million, 30% drop Last 30 days. However, its maximum supply (66 million), compared to the total number of tokens in circulation (around 50 million), may make it more attractive to investors concerned about inflation. Moreover, the price of AR has fallen significantly since hitting an all-time high in late 2022.
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While Arweave trails in terms of price and adoption, it’s wise to note the protocol’s growing popularity due to its unique differentiators as a persistent storage solution for public data. This can give them a distinct advantage over their competitors in providing infrastructure for the metaverse. Meta already uses Arweave permanent storage Digital Goods from Instagram. Transactions on Arweave reached his monthly ATH in February (+20% MoM), despite a significant drop in Metaverse and blockchain game projects.
Last month: Arweave hit a new record high in transactions (+20% MoM).
Tomorrow: Arweave 2.6 is activated, bringing a greener and more accessible mining and self-optimizing storage market.
Permaweb is humming. pic.twitter.com/BmYszqfux0
— sam.arweave.dev (@samecwilliams) March 5, 2023
An increase in transactions will Release of Arweave 2.6This aims to reduce storage costs and improve miner energy efficiency while improving the protocol’s ESG standing.
However, Arweave founder Sam Williams hypothesizes that most of the transactions are due to Bundlr, which claims to increase transactions on Arweave. 4,000% At ~3000x faster upload speeds without compromising security. Bundlr accounts for his over 90% of the data uploaded to Arweave.
Arweave price hits all-time high for transactions and Meta and Solana (SOL) blockchain. This is not much different than Filecoin, whose name is almost 100% down from ATH.
Meanwhile, Arweave’s “weave” (a blockchain-like structure) grew in size by 135% year-over-year (134 TB). A recent report by Messari estimated that 25% of Weave is related to NFTs and 72% is related to Web3. The report also mentions that decentralized social (DeSoc) projects like Lens Protocol are using Arweave as their preferred decentralized storage platform.
Meta on the other hand recently announced It’s a “shrinking digital collectible (NFT)” that could overshadow Arweave’s growth potential. Additionally, Arweave’s storage growth is overshadowed by a 1,390% (687,900 TB) increase in Filecoin over the same period.
It’s also worth considering how recent news about Amazon’s upcoming NFT marketplace will impact the storage coin market. Arweave may have the most immediate impact because of it. Partnership with Avalanche (AVAX) is considering the L-1 blockchain, which it partnered with Amazon last year. Amazon Web Services (AWS) and InterPlanetary File System (IPFS) being used by Filecoin, Arweave, and several other decentralized storage solutions, NFT’s growing awareness through Amazon may eventually drive users and capital into the system. Amazon’s NFT campaign could drive traffic to OpenSea, a leading NFT marketplace that utilizes IPFS and Arweave for metadata storage.
Looking at the numbers: yes.
Amazon has over 310 million active customers worldwide.
If only 1% of them expressed interest in new digital markets, our space would grow 3x overnight.
(4/16) pic.twitter.com/JbB9o7vxpR
—wale.swoosh (@waleswoosh) March 7, 2023
It also shows the NFT market signs of resilience, February traded volume was $2 billion, up 117% from the previous month, and the industry’s Total Value Lock (TVL) increased more than 7% ($81 billion). Blockchain gaming remains the dominant sector, a space hungry for decentralized storage (his 45% of DApp industry activity) despite a 12.33% decline in on-chain gaming activity.
With the number of fundraising transactions jumping 90% in February, it’s clear that long-term interest in blockchain gaming remains strong, which is good for storage coins in a position to back the sector. would be a sign.
The rise of blockchain games could lead to more storage coins such as Filecoin and Arweave, but it is important to carefully analyze the underlying news, security and adoption trends of each project before making an investment decision. is. Filecoin appears to be a stronger option due to its increasing adoption, but the steady increase in Arweave’s use in the growing Web3 narrative continues to be an interesting trend to watch.
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