The Filecoin token (FIL) saw a sharp rise in price on Friday, according to data from CoinMarketCap. The surge in value was likely due to the upcoming launch of the Filecoin Virtual Machine (FVM) on March 1, a software platform that will introduce smart contracts and enable developers to design decentralized applications on the Filecoin network.
The coin’s price jumped from $5.38 at midnight ET (05:00 UTC) to a high of $7.82 at around 5 p.m. ET (22:00 UTC). FIL was trading at $7.35 at the time of publication, up 36.7%. Twitter user Colin Wu, who tweets under the name Wu Blockchain, generated buzz on the subject by sharing news of the pump along with information about the network’s upcoming smart contracts launch to his more than 250,000 followers.
FVM’s addition to Filecoin will render the network a full-fledged layer 1 blockchain. The platform will support an array of user programmable applications such as perpetual storage, storage replication and repair automation and liquid staking through block rewards. It will also be interoperable with the Ethereum Virtual Machine (EVM), allowing Filecoin to form cross-chain bridges enabling crypto funds to move from one blockchain network to another.
The launch of FVM is expected to bolster Filecoin’s adoption by the decentralized finance (DeFi) community. DeFi projects, including the development of layer 1 blockchain protocols, have garnered a strong following in the wake of a host of major cryptocurrency firm collapses that have shaken investors’ faith in centralized exchanges. With the launch of FVM, Filecoin is well-positioned to capitalize on the growing demand for decentralized finance solutions.