Leading the top gainers tracked by CoinMarketCap, filecoin and the graph have surged in the last 24 hours.
Filecoin (FIL) leads the pack, boasting a 18.10% increase in the last 24 hours, while the graph (GRT) secures the second position with a 18.00% surge in value.
A response to Twitter controversy
At the time of writing, filecoin was sitting at $4.79 with a $548,060,889 trading volume. On the same report, the graph was sitting at 0.1348, with a trading volume of $242,291,133 in the same 24 hour period.
Although there is some speculation about the reason behind the sudden growth, recent news of Twitter finding itself embroiled in a “rate limit controversy” after implementing reading limits on its users shows some correlation.
The social media platform justified this move by citing concerns about “extreme levels of data scraping and system manipulation.” The decision drew attention to decentralized data storage protocols such as filecoin and the graph, which have experienced a growth in prices in the 24 hours to follow.
The rate limit controversy sparked debates regarding the control and accessibility of user data on centralized platforms. Twitter’s move served as a reminder of the potential limitations and vulnerabilities associated with relying on a single entity to manage and store vast amounts of data.
In response to this situation, proponents of decentralized data storage protocols highlighted the advantages of distributed networks. Protocols like Filecoin and The Graph utilize blockchain technology to store data across a network of independent nodes, offering increased security, data integrity, and resilience against censorship or manipulation.
Filecoin positions itself as a decentralized and open-source storage system, providing developers with the ability to build cloud file storage services.
Similarly, The Graph is a platform that promotes itself as an indexing protocol designed for data querying on networks. It enables individuals to construct and release open APIs known as subgraphs, which applications can utilize GraphQL to access and retrieve blockchain data.
A change from the bearish
Prior to this announcement filecoin was experiencing an extended period of bearish momentum, largely influenced by the Securities and Exchange Commission’s (SEC) decision to block Grayscale’s attempt to register Filecoin as an official asset.
The SEC’s classification of filecoin as a security has led to a significant number of crypto investors distancing themselves from the cryptocurrency, although recent growth may suggest a reverse movement.