While today’s 2.32% price increase for Filecoin (FIL) is not a big change, it is important for investors that this coin start moving the right direction after the major drop from Friday last week. Then, Filecoin dropped about 32% in a few hours, and it has a long way to go to recover from that loss.

What Is Filecoin?

While this crypto token may be in the top 40 cryptocurrencies coins, it is one that does not get the same kind of mainstream media attention as some of the bigger hitters, so many crypto investors might not be very familiar with it.

Filecoin is the proprietary coin of a data storage decentralizing venture. This storage network is designed to be both B2C and B2B. The developers’ hope is that Filecoin will revolutionize the way file storage is done and consolidate the options for consumers to give them a clear choice when it comes out how the store their files. So, they work with video game developers, website operators, and businesses to give them new options for keeping their files safe and accessible.

Is Filecoin on the Road to Recovery?

When the FIL rate dropped last week, it fell from a price of $3.79 (FIL/USD) to $2.71. The price shot back up to $3.11 within a few hours, but it has not seen a major price jump since then. Today, FIL’s rate is still down, having retreated to $2.98.

That is up a bit from the previous day, bit there is still a lot of ground to regain if the coin will get back to where it was before Friday’s disaster. The coin has been losing ground over the past few months, leaving investors to wonder if it is still as useful and appealing as it was previously.

The entire market saw a drop that same day, but Filecoin’s was one of the sharper declines. That could be due to the loss of consumer confidence in the coin, which means there is some work to do to regain that. It is very likely that Filecoin will spend weeks trying to get back to the $3.79 mark it was at before the drop. We are seeing some decent movement today, but we do not expect a full recovery anytime soon.