BTC-Newswire

Why Filecoin’s revenue plunged 60% in Q3

Press Releases Crypto News AMB-Crypto Why Filecoin’s revenue plunged 60% in Q3

Filecoin’s revenue suffered a decline in Q3.
In the coin’s derivatives markets, participants continued to maintain a bullish outlook.

Leading decentralized storage network Filecoin [FIL] suffered a 60% dip in protocol revenue in the third quarter, Messari found in a new report.

Read Filecoin’s [FIL] Price Prediction 2023-24

According to the on-chain data provider, Filecoin’s revenue decline between July and September was due to an “overall decline in demand-side revenue across the decentralized cloud storage space” during that period.

The Filecoin network is used to store data by both the demand side (storage users) and the supply side (storage providers).

On its demand side, storage users can create storage deals on Filecoin, specify the amount of data they need to store, the duration of the storage, and the price they are willing to pay.

Moreover, Filecoin requires storage users to pay certain fees in the protocol’s native token FIL. These fees incentivize storage providers to store data reliably and prevent the network from being spammed.

On its supply side, storage providers can register their storage capacity on the Filecoin blockchain and then bid on storage deals to offer their storage capacity to storage users.

According to Messari, Filecoin’s Demand-side base fees (the minimum fees paid to store data on the network) plummeted by 72% during the period under review. The analysis further noted,

“In line with base fee declining, all the other FIL fees that accrue to the protocol revenue (penalty, batch, and overestimation fees) declined QoQ.”

Between July and September, Filecoin’s protocol revenue totaled $14.8 million, declining by 15% from the $17.6 million recorded in Q2. Filecoin’s supply-side revenue

Go to Source to See Full Article
Author: Abiodun Oladokun

Did you like this?
Tip BTC Newswire with Cryptocurrency