FIL once also had its glorious moments, with a historical peak price reaching around 200U, now the price is 5.5U

How much expectation do you still have for it, and how many people have been continuously buying and holding from high prices? In the upcoming bull market, do you think FIL will follow along?

In the vast world of cryptocurrencies, there once was a shining star—Filecoin (abbreviated as FIL), which attracted the attention of many investors with its unique distributed file storage concept and the application of blockchain technology. However, the world is unpredictable, and this once brilliant 'digital pearl' has now faded and fallen from grace. Why did FIL fail? The reasons behind it are complex, like a tragic market symphony that we will analyze here.

Why did FIL fail? Its issuance volume exceeds 1.9 billion, and its liquidity has now reached over 600 million.

1. Market bubble burst, value returning to rationality

1. High initial expectations: When FIL was first launched, the market had high hopes for it, and investors flocked to this 'new land', hoping to mine digital gold. However, this kind of fervent pursuit often comes with the breeding of price bubbles, and FIL's market value was once excessively inflated, deviating from its actual application value.

2. Technical bottlenecks difficult to break: Although FIL touts itself as 'decentralized storage', in practical applications, its storage efficiency and cost advantages have not shown significant superiority compared to traditional cloud storage services, and the technical bottleneck has not been broken through, leading investors to doubt FIL's future prospects.

3. Market confidence shattered: With the overall cooling of the cryptocurrency market and a series of negative news impacts (such as issues with the project party, regulatory pressure, etc.), investor confidence in FIL gradually crumbled, leading to sell-offs by the FIL project party, and the bubble eventually burst under the laws of the market, causing prices to plummet.

4. Intensified competition, market share eroded

1. Rise of similar projects: In the distributed storage field that FIL attempted to explore, similar projects like Sia and Storj quickly emerged, dividing the market share that originally belonged to FIL with their respective competitive advantages. These competitors have shown stronger vitality in terms of technological innovation, user base, and collaborative ecosystems, causing FIL to gradually fall behind in the competition.