Filecoin's (FIL) price has been a topic of discussion among cryptocurrency enthusiasts and investors. Despite its advanced decentralized storage technology, the token's value has been on a downward trend. Several factors are contributing to this decline.
The main reasons for FIL's drop in value include excessive supply due to high inflation, lack of demand from real enterprises and individual users, and sustained selling pressure from miners. The 180-day unlocking period for miners results in the sale of unlocked coins, leading to a continuous supply of tokens entering the market. This surplus makes it challenging for prices to rise.
Furthermore, FIL's value is also affected by regulatory uncertainty and weak market conditions. As a result, large funds are hesitant to invest in the asset. The halving event this year is expected to reduce daily output by half, lowering inflation. However, this may not be enough to boost prices immediately, as demand needs to increase to drive the market.