Cryptocurrency storage tokens led the market surge in the first week of July, with Filecoin’s FIL and Storj’s STORJ outperforming major tokens like Bitcoin and Ethereum.
Storj’s native token saw a 43% surge on Tuesday, and despite a slight pullback, it has risen 15% in the past seven days. Filecoin’s FIL, which competes with Storj, has a market value of nearly $2 billion (compared to Storj’s $145 million) and has also risen 12% in the past seven days.
Storj is one of the few competitive cryptocurrency-supported cloud storage platforms often described as an alternative to cloud storage platforms provided by Amazon or Google. Filecoin is also a decentralized protocol that allows users to rent out spare storage space on their computers.
The world’s largest cryptocurrency by market capitalization, Bitcoin, fell 0.7% during the same period. Ethereum suffered a major setback, dropping 3.5%. Bitcoin’s trading price has been hovering above $30,000 for several weeks but has struggled to reach the $32,000 level.
Traders point out that the current market uncertainty is the reason behind the price stagnation. The market is weighing contradictory economic data and the ongoing deliberations by central banks on how to curb stubborn high inflation without causing a severe economic downturn.
“There are more bullish reasons behind the ETF applications, but there’s no guarantee they will yield positive results, even with increased support from relevant individuals. It could also be a lengthy process, which might explain the stagnation we’ve seen over the past few weeks,” wrote Craig Erlam, Senior Market Analyst at OANDA.
Solana’s SOL also saw a significant increase this week, rising 12%. SOL surged by 8% on Friday alone. The reason behind the increase is not yet clear, but some analysts predict that the token will continue to rise. Sean Farrell, Director of Digital Asset Research at data company FundStrat, said that it’s unclear what the catalyst is, but “after the forced selling on Robinhood, things could get super oversold, and now we’re just reverting back to previous support levels.”