Filecoin price explodes by almost 18% following the launch of Filecoin Virtual Machine

Filecoin marked a new milestone in its roadmap as the blockchain launched its very own Virtual Machine on Tuesday, bringing about a crucial change to the network. Kicking in the final step in the “Filecoin Masterplan”, Filecoin Virtual Machine intends to bring large-scale computation and unlock open data economy for web3.

Filecoin Virtual Machine comes to life

Filecoin made a crucial development with the launch of the Filecoin Virtual Machine (FVM). The FVM is still a small part of the company’s larger roadmap. Commenting in line with the same at the time of launch, the company noted, 

“The launch of FVM solidifies Filecoin’s position as the Layer-1 blockchain uniquely poised to power an open data economy. Many leading web3 projects have announced plans to use, support, or integrate with FVM to upgrade their services.”

The FVM has also been designed to be fully Ethereum compatible with solutions for DeFi and cross-chain solutions arriving as well. FVM would also benefit the FIL token holders as the blockchain is now capable of supporting Decentralised Finance lending protocols. These protocols will allow token holders to soon be able to contribute their own FIL to grow Storage Provider operations via smart-contract-based protocols.

Furthermore, the FVM will also enable integrations with other web3 blockchains such as Polygon. These include cross-chain messaging and cross-chain liquidity via other protocols such as Axelar. Commenting on the same, the co-founder of Axelar, Sergey Gorbunov, stated,

“The Axelar-Filecoin integration is one of the first use-cases of interoperability that enables composition of chains with different properties. For instance, DeFi across blockchains will be composable with decentralized storage, regardless of where they choose to build.”

While no further details regarding the Filecoin roadmap have been shared at the moment, the focus is on the price action of the native token, which performed exceptionally on Tuesday.

Filecoin price notes an uptick

Following the broader market cues as well as being fuelled by the bullishness arising from the launch of FVM, Filecoin price climbed by more than 18% on the charts yesterday. The intraday trading hours noted FIL touching $7.598 before declining to close at $6.785.

The push noted from the broader market also brought Filecoin price close to the critical resistance at $7.877, breaching which would have enabled FIL to begin its recovery rally. If successful, the altcoin would have marked a new year-to-date high beyond the $9 mark.

FIL/USD 1-day chart

But if the immediate support level at $6.590 is lost and Filecoin price falls below the critical support level at $5.466, the bullish thesis would be invalidated. The altcoin could end up not only falling below $5 but also declining to two months' lows of $4.164.