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Filecoin (FIL) price went parabolic on Monday as crypto investors embraced a Fear of Missing Out (FOMO) attitude. The token jumped above the important resistance level at $7. It now sits at its highest point since January 2nd of this year.
Filecoin’s surge has triggered a major liquidation of short-sellers in the ecosystem. Data by Coinglass shows that shorts liquidations rose to over $3.2 million in the past 24 hours, the highest figure since December 31st. Bulls liquidations remained at just $778k in the same period.
Liquidations happen when brokers are forced to close positions in the market. In this case, shorts liquidations happened as most short-sellers were closed because they could not meet their margin requirements.
Meanwhile, additional data showed that open interest in the futures market jumped as the Filecoin price jumped. This open interest rose by 15% in the past 24 hours to over $291 million or 40.32 million FIL.
Most of this open interest or $122 million came from Binance followed by OKX, Bybit, BingX, and Bitget. An increase in open interest is a sign that there is strong demand in the futures market, which is a positive sign.
Still, the challenge for Filecoin is that its ecosystem is not doing well. For example, there are signs that the Filecoin EVM, which was launched with a lot of hype in 2023 had faltered. Data by DeFi Llama shows that the total value locked (TVL) in the ecosystem has dropped to just $829k. This is lower than last year’s high of over $3.3 million.
On a positive side, the TVL has jumped to a record high of over $364 million when liquid staking is included. The biggest Filecoin liquid stakers are the likes of GLIF, STFIL, and SFT Protocol. Liquid staking allows people to stake in a more flexible and decentralised manner.
The other big Filecoin news was its integration with Solana, which has become a leading player in the Decentralised Public Infrastructure (DePin) in the world. Solana is known for its faster speeds and low transaction costs.
The Filecoin integration with @solana has been such a huge success – we're ready for the next big move.
What integration would you like to see? 👇 pic.twitter.com/6GHPmPTxV4— Filecoin (@Filecoin) February 19, 2024
The post Filecoin shorts liquidations jump as FIL price spikes appeared first on Invezz
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