In an unexpected turn of events, Storj, a decentralised storage service provider, which is Filecoin’s main competition, is currently driving the momentum for altcoins. According to information from CoinMarketCap, STORJ is currently trading at $0.5296, up 51.55% in the last day. The gain was fueled by a 2,455% increase in the token’s trading volume during the previous 24 hours.
Although STORJ does not necessarily lead this cryptocurrency trend, its current spike is evidence of its rising popularity among users.
STORJ fundamentals
With the release of its whitepaper in 2014, STORJ is arguably one of the early innovators of decentralised storage services. Although it has a lower market value than Filecoin, it invented the idea of decentralised storage.
Users of the STORJ model pay a small fraction of what they would for other centralised choices like the Amazon Web Service (AWS), Google Cloud, or Microsoft Azure, while receiving storage space from thousands of node operators.
Although mainstream competitors have obscured Storj’s popularity since its launch, the current price increase shows that the protocol and its native token still have a very loyal community and investor base, the majority of whom now stand to benefit from the rising prices at this time.
Advocacy for caution
Given that there doesn’t seem to be any evident news that is priming the pump, the expansion of STORJ is best seen as organic. Based on this, investors, especially those who are currently in the black, may need to exercise caution because the Storj team may be preparing to liquidate their shares gradually.
Lookonchain, a supplier of crypto analytics data, noted that the Storj team moved 2.5 million STORJ tokens, valued at about $1.22 million, to the Binance market when prices increased. Although this amount represents a tiny portion of the team’s holdings, any prospective liquidation might materially hinder the development of the digital currency and harm investors on a global scale.
