Cardano (ADA) and Filecoin (FIL) soar: What’s behind them?

Cardano and Filecoin are rising rapidly: Here’s what’s behind them

While the Bitcoin price licks the wounds from yesterday’s sell-off, Cardano and Filecoin are staging a veritable rally. Market update.

The crypto market is back under a green sign after the recent correction. The Bitcoin price – still in full correction mode yesterday – was able to bounce off the 24-hour low of US$53,000 and is trading at US$55.249 as of press time. Although Bitcoin’s market capitalisation continues to confidently Crypto Nation Pro defend the one trillion US dollar mark, Bitcoin dominance continues to track the downward trend that began at the start of the year. Partly responsible for this: Cardano (ADA).

Driven by bullish news from the development department, Cardano has increased its market capitalisation sevenfold since the beginning of the year. At $40 billion, Cardano has once again overtaken Binance Coin (BNB) as the third largest cryptocurrency by market cap. Today, ADA starts the European trading day with a whopping price gain of over 20 percent.

The main price driver is likely to be a report from overseas: The US crypto exchange Coinbase Pro announced on 16 March that it would include Cardano (ADA) in its trading offering. Specifically, ADA trading on Coinbase Pro is to start on 18 March at 17:00 (CET) – provided there is sufficient liquidity.

At least among competitors, Cardano trading has increased massively since the Coinbase announcement. ADA with an equivalent value of over USD 10 billion changed hands on Binance, Kraken and Co. within the last 24 hours. This means that the trading volume of ADA has increased by over 120 percent within one day – the Coinbase listing seems to be under a good omen.

Filecoin (FIL): Rally due to expiry of the first holding period?

In the meantime, among the top 25 coins, Filecoin, in addition to Cardano, can also boast a whopping daily increase of 26 percent. With a price increase of 64 percent, FIL is one of the top performers of the past seven days. The reason for this could be the end of the first waiting period for early investors: During the pre-sale of FIL, which took place via so-called SAFT tokens (Simple Agreement for Future Tokens), investors had the opportunity to choose one of four possible holding periods (vesting periods):

  • 58 % of the SAFT tokens will be released on a linear basis over 3 years.
  • 5% of the SAFT tokens will be released on a straight-line basis over 2 years.
  • 15% of the SAFT tokens will be released on a straight-line basis over 1 year.
  • 22% of the SAFT tokens are released on a linear basis over 6 months.

The launch date marked the launch of the Filecoin network on 15 October 2020. The linear distribution means that SAFT investors will not receive their „reserved“ FIL tokens all at once, but pro rata with each block until the end of the holding period. On 15 April, the first vesting period ends, reducing the amount of Filecoin units coming to market.

Of the total targeted supply of two billion FIL, 7.5 per cent is reserved for SAFT investors. Within the first six months since the Filecoin launch, a total of 10.1 million FIL will be distributed to SAFT investors every month. This seemingly high value is due to the fact that one Filecoin SAFT was sold at a price of 1 USD. Not a bad deal considering Filecoin is trading beyond USD 60 at the time of writing. Each time a holding period expires, distributions to SAFT investors will decrease. After 15 April, around 4.6 million FIL will still flow to SAFT investors, and in the last stage they will receive around 2.4 million FIL per month.