$AR

Today we will take an in-depth look at Filecoin (FIL) and its competitor AR. Both are projects in the field of decentralized storage, but their fates are completely different. Filecoin, once hailed as the leader of decentralized storage, has embarked on a long downward path since its peak, leaving many investors trapped in it, and looking forward to relief seems to be far away. In contrast, the AR projects that started in the same period, although not well-known, have surpassed the former leader Filecoin in terms of market performance, triggering widespread attention and discussion in the industry.

Filecoin’s current market environment is very different from that in 2021. At that time, its circulation was limited, and the enthusiasm of service providers was high, driving huge demand. Today, the circulating supply is close to 600 million, the enthusiasm of market participants has dropped significantly, and demand is weak. Although the arrival of the sector expiration peak at the end of 2024 may bring some stability to the network, it will have limited improvement on the supply side. The key to the future of Filecoin lies in whether there is substantial ecological development to boost the demand for FIL. Otherwise, the secondary market may continue to struggle.

On the other hand, the AR project surpassed Filecoin in the first half of the year with its smaller circulation market value and became a rising star on the track. Although the market value has subsequently corrected, it has not affected its positive growth trajectory. This phenomenon reflects investors’ curiosity and doubts about possible subtle changes in the storage track.

Filecoin's long-term weakness is rooted in its slow ecological development and design flaws in its economic model, which has led to an oversupply of chips and a large number of FILs being released into the market every day. This continued oversupply, coupled with the continued release of institutional chips, has put tremendous pressure on investors and limited the room for currency price increases.

In the current market environment, the market is generally cautious about project tokens issued by institutions, because such projects often have a small initial circulation market value, and then dilute the market value through continuous lifting of bans, affecting the secondary market. Filecoin is a typical representative of this phenomenon. Its experience makes investors more inclined to choose projects with small market capitalization and novel concepts. Even if these projects may lack actual support, as long as they can attract popularity and create wealth effects, they can be used in secondary projects. occupy a place in the market.