Polygon Links With Filecoin, How Users Will Benefit From Free Storage

Layer one network Polygon continues to expand and solidified its position in the crypto space. Recently, they announced a new partnership with Filecoin, a network that allows users to store and transfer data via a native marketplace.

The cooperation launched the Filecoin-Polygon Bridge, to increase their interoperability. Built by the Textile team, the bridge enables users to use any Polygon mainnet to connect with Filecoin’s storage and

(…) start storing data on Filecoin from any Polygon address without any conversions, signups, developer tokens, or secrets exchanged.

In addition, Textile, Polygon, and Filecoin announced further incentives for users and developers to leverage the bridge. For the foreseeable future, they will cover all storage costs for every project using the Textile Filecoin Storage Bridge. Thus,

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Filecoin will bring greater functionality to Polygon applications that require decentralized and verifiable data storage.

The bridge will be “gradually” improved to increase its usability and will launch a governance model. In that way, the community will have the power to decide the direction of the project and will operate as an additional incentive for users and developers to jump in and participate.

The bridge will benefit from Filecoin’s features, and any app, smart contract, or service will still rely on the InterPlanetary File System (IPFS) to retrieve data. Information will be available on an entity called “storage contract” to be created with miners operating on the Filecoin Network.

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One of Textile’s main objectives is to improve Polygon, and other blockchains capacity to hold and transfer data:

Filecoin brings many of the best parts of the IPFS stack, including verifiable data, peer-to-peer (p2p) data exchange, de-duplication, and more. We can create a more secure data storage layer for Polygon applications and their users (…).

An Improve Storage Layer For Polygon, How Does It Work?

According to a blog post published by Textile, the Filecoin Storage Bridge to Polygon is supported by two concepts. The first is “deposit” and is power by an API that enables them to take place on-chain, the second is “storage” power by several APIs that “interact off-chain with a storage validator that will interface with Filecoin”.

This system offers protection against bad actors and potential Sybil Attacks, as users must deposit funds proportional to the length of time that they’d like to keep their data storage, Textile clarified. The default amount to be deposited for an hour of storage is 100GWEI per second or 0.00036 MATIC every hour.

As seen in the chart below, research firm Messari records an increase in total value locked on Polygon. This metric, as research Ryan Watkins said, has many detractors but can be used as a proxy to determine “how much value” users place on the smart contracts running on this ecosystem.


The metric has seen a recovery after a decline during June and is “trending nicely” towards previous highs. At the time of writing, MATIC trades at $1,64 with an 8.3% profit in the daily chart.



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Filecoin ignores Elon Musk’s Bitcoin FUD as FIL price rockets by 17%

FIL, the native crypto asset of the Filecoin network, was among the best performing digital assets Friday as it maintained its gains against a very bearish cryptocurrency market.

The FIL/USD reached an intraday high of $102.109 at around 0300 UTC, up more than 37% on a 24-hour adjusted timeframe. The pair underwent a sharp correction later on profit-taking sentiment but sustained its 24-hour gains by staying upward of 17%.

In contrast, Filecoin’s top rivals Bitcoin (BTC) and Ether (ETH) were down more than 6% and 7%, respectively, as of 0945 UTC.

Filecoin attempts to post solid rebounds following its recent downside moves. Source: FILUSD on TradingView

Almost all the top-cap digital assets posted losses after Elon Musk, the founder/CEO of Tesla, tweeted a cryptic breakup meme with a hashtag #bitcoin and a broken heart emoji.

According to the firm’s securities filing released in February, Tesla had added $1.5 billion worth of BTC tokens to its balance sheet. However, Musk’s mysterious tweet on Thursday night raised fears that Tesla was going to or has already unloaded its entire Bitcoin investment.

Bitcoin dropped from around $39,500 to as low as $36,250 within a day. Meanwhile, the assets that remain positively correlated to the benchmark cryptocurrency also plunged in tandem. That included the second-largest cryptocurrency Ether, followed by its topmost rivals Binance Coin (BNB), Cardano (ADA), and even Musk’s favorite Dogecoin (DOGE).

Bitcoin takes all its top rival down after Musk’s tweet. Source: Messari

On the whole, the cryptocurrency market cap lost more than $128 billion in the previous 24 hours.

Why did Filecoin survive the bloodbath?

No major event took place in Filecoin’s decentralized file storage ecosystem this week. The last major announcement from the project’s team came on May 27, wherein it revealed “HyperDrive Network Upgrade” that proposes to boost its storage onboarding rate by 10-25 times than the current rate.

Filecoin traders ignored the said update — the FIL/USD exchange rate plunged 4.36% on May 27 and 6.45% in the next session. Meanwhile, the pair traded choppily between May 20 and June 2 in a tightening consolidation range, even as other tokens logged wild intraday price fluctuations.

Filecoin underwent a technical bullish breakout after consolidating inside a Triangle pattern. Source: FILUSD on TradingView

Filecoin’s under-performance against rival tokens also pushed its Relative Strength Index (RSI), a technical indicator to measure an asset’s price momentum, just near an oversold territory. Traders typically increase their exposure in the assets that appear undervalued per the RSI readings — below 30. FIL/USD’s RSI was 35.96 before its latest price jump.

So it appears, Filecoin attracted traders owing to its perceivable undervaluation compared to other top digital assets. That provided a short-term hedge to traders attempting to offset their risks against the Musk-led crypto market decline.

FIL also displayed a similar strength against Bitcoin. The FIL/BTC exchange rate jumped by nearly 40% after opening the Thursday session at 18,286 sats. The pair corrected lower by around 8.25% in the early London session Friday. Still, they maintained its intraday profits, showing that traders were in no hurry to go back to Bitcoin.

Strong volume spikes on both FIL/USD and FIL/BTC charts also indicated a renewed interest in the trading instruments.