and the distribution of digital products.
State of Filecoin Q4 2024
- New storage deals increased by 10% QoQ in Q4 2024, reaching 3.1 PiB per day, despite a 9% decline in total stored capacity.
- Storage utilization grew from 30% in Q3 to 32% in Q4, while storage capacity fell 13% QoQ, continuing the shift toward enterprise-driven, high-value storage solutions.
- As of December 31, 2024, over 4,700 unique contracts were deployed on the Filecoin Virtual Machine (FVM), facilitating over 3 million transactions.
- Filecoin expanded its Layer-2 ecosystem with Basin, Akave, and Storacha, improving scalability, AI adoption, and decentralized data management.
Filecoin is building a marketplace for data services—with the first service being storage—on top of the InterPlanetary File System (IPFS). Filecoin uses deals that price storage based on a market of providers instead of fixed pricing. A storage deal is like a contract with a service level agreement (SLA)—users pay fees to providers to store data for a specified duration.
To keep data safe, Filecoin uses a cryptoeconomic incentive model to regularly verify storage with zero-knowledge proofs. To incentivize storage providers to participate in deals, Filecoin rewards them with FIL, the network's native token. Storage providers are slashed if they fail to provide reliable uptime or act maliciously against the network.
To retrieve data, Filecoin users pay a retrieval provider to fetch data. Unlike storage deals, which involve transactions onchain, retrieval deals use payment channels to settle payments offchain, to enable faster retrieval. Besides storage and retrieval, Filecoin aims to offer an open market where compute power can be contracted to run over data, providing more efficient alternatives to traditional centralized systems.
Key protocol upgrades to enable compute-over-data services include smart contracts (the Filecoin Virtual Machine - FVM) and scaling (Interplanetary Consensus - IPC). The launch of the FVM in March 2023 brought Ethereum-style smart contracts to enable new use cases on Filecoin, including token leasing, perpetual storage, and compute. Besides growing its FVM ecosystem, Filecoin focuses on enterprise adoption.
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Key Metrics
Performance AnalysisThe Filecoin Network is primarily used to store data decentrally by two parties:
- The demand side, i.e., storage users needing data storage.
- The supply side, i.e., storage providers with excess storage capacity.
The amount of data stored in active deals between storage users and providers gauges the demand for Filecoin storage.
Deals
In Q4 2024, around 1,500 PiB was stored on the Filecoin Network through active deals, marking a 9% QoQ decline from 1,600 PiB, reflecting a strategic pivot toward enterprise adoption and high-value storage solutions. This shift prioritized perpetual archiving, data privacy, and Web2/Web3 integrations over raw storage volume, refining storage incentives and deal structures.
This strategic pivot enhances network utilization efficiency even as aggregate storage volume experiences a temporary decline. By emphasizing enterprise adoption, compliance-ready storage, and AI-driven applications, Filecoin is cultivating a more sustainable demand model, positioning the network for stronger retention and monetization of storage deals in future quarters.
Utilization vs. Capacity
Filecoin’s storage utilization rose to 32% in Q4 2024 from 31% in Q3, driven by a 13% drop in raw byte storage capacity (4.8 EiB to 4.2 EiB) rather than increased demand. This reflects Filecoin’s shift from supply incentives to onboarding high-value enterprise storage. Since peaking at 17 EiB in Q3 2022, capacity has steadily declined as economic incentives changed, leading smaller providers to exit, with active storage providers falling to ~1,900 in Q4 2024 (down from 4,100 in Q3 2022). The network now prioritizes enterprise adoption, AI data solutions, and compliance-ready storage (e.g., DeStor, Seal, Filecoin Web Services), focusing on efficiency over sheer capacity growth.
ClientsAs per Messari’s guide on decentralized storage networks, Filecoin is geared toward providing cold storage solutions (e.g., archival and recovery) for enterprises and developers. Low storage prices help attract traditional businesses seeking cost-effective alternatives for storing large amounts of archival data.
DeStor, a service provider on Filecoin that connects clients to storage providers, partnered with Qamcom DDS to enhance the security, robustness, and scalability of its services. The partnership includes data clients like YayPal, a Web3 gaming studio with over 500,000 users, and Fieldstream, an AI marketing analytics platform. Examples of other client solutions include:
- GhostDrive: focused on prioritizing privacy and security through encryption, decentralization, and novel storage optimization techniques;
- Seal: focused on storage onramps for large clients such as UC Berkeley, Starling Labs, the Atlas Experiment, and the Casper Network;
- CIDGravity: focused on enterprise integrations with open source platforms like Nextcloud.
Beyond cold storage, other efforts are driven by storage solutions from Lighthouse, RIBS, Retriev, and Flamenco, among others.
As of the end of Q4 2024, 2,263 clients onboarded datasets on Filecoin, marking a 10% QoQ increase from 2,060 in Q3 2024. Of these, 751 clients onboarded large datasets (over 1,000 TiB), reflecting the growing demand for enterprise-scale decentralized storage. This growth was further accelerated by FIP-0092, introduced in Q3 2024 as part of the Waffle upgrade, which helped reduce entry barriers for new storage providers by implementing Non-Interactive Proof of Replication (NI-PoRep). This upgrade enhanced proving efficiency, lowered computational costs, and increased accessibility for new and existing storage providers, thereby expanding the network’s storage capacity and facilitating the onboarding of larger datasets.
FVM TractionWhen the Filecoin Virtual Machine (FVM) launched in March 2023, it brought Ethereum-style smart contracts to Filecoin. As of December 31, 2024, around 4,700 unique contracts are deployed on the FVM, facilitating over 3 million transactions.
In Q4 2024, Filecoin saw total inflows of $99 million, marking a 21% increase QoQ from $82 million in Q3 2024. Meanwhile, total outflows also rose to $75 million, up 50% QoQ from $50 million in Q3 2024. This increase in deposits and borrows suggests a renewed demand for liquidity, potentially driven by an uptick in network activity or shifting market conditions that encouraged lenders and borrowers to engage more actively.
On a YoY basis, inflows in Q4 2024 were up 87% compared to $53 million in Q4 2023, reflecting an expansion in Filecoin’s lending market over the past year. However, this comes after a peak in Q1 2024 ($146 million in inflows), indicating that while lending demand remains strong, it has tapered off from its early 2024 highs. Outflows also followed a similar trend, rising 73% YoY from $43 million in Q4 2023 but staying below the Q1 2024 peak of $108 million.
The QoQ rise in deposits and borrows in Q4 2024 could be attributed to seasonal trends, network incentives, or increased demand for FIL-backed loans amid market volatility. Additionally, the FIL-denominated inflows (21 million FIL) and outflows (15 million FIL) remained relatively stable compared to previous quarters, suggesting that much of the USD fluctuation was driven by FIL price movements (+30% QoQ) rather than a dramatic shift in lending activity.
Financial OverviewFilecoin's revenue model shares similarities with Ethereum due to its EIP-1559-inspired gas system, where a portion of network fees is burned to regulate congestion. However, unlike Ethereum, Filecoin’s economy is storage-driven, with storage users paying fees and storage providers earning revenue while managing collateral and penalties.
Fees
As per Messari's revenue analysis, Filecoin's fees comprise of:
- Base fees – Determined by blockspace congestion and required by any storage proof.
- Batch fees – Used for bundling storage proofs to optimize costs.
- Overestimation fees – Required to optimize gas usage.
- Penalty fees – Collected for storage provider failures.
In Q4 2024, Filecoin’s fee structure saw a 399% QoQ increase in Base Fees ($560,000), signaling increased network activity and congestion, likely tied to higher transaction volumes and storage proofs. Overestimation Fees increased 508% QoQ ($35,000), reflecting inefficiencies in gas estimation amid fluctuating demand. Batch Fees rose 28% QoQ ($189,000), indicating greater reliance on cost-saving batch processing for storage proofs. Meanwhile, Penalty Fees declined 13% QoQ ($520,000), suggesting improved storage provider reliability. These shifts align with higher FIL inflows and borrowing activity, pointing to growing onchain engagement and network stability heading into 2025.
Market Cap
In Q4 2024, Filecoin’s circulating market cap increased 36% QoQ to $3.0 billion, up from $2.2 billion in Q3 2024, alongside a 30% QoQ rise in FIL’s price to $4.9 in Q4 2024 from $3.8 in Q3 2024. Circulating supply grew 5% QoQ to 617 million FIL, maintaining a consistent issuance rate. On a YoY basis, the market cap declined 12% from $3.4 billion in Q4 2023, despite FIL’s price rising 30% YoY from $3.8.
Qualitative AnalysisKey DevelopmentsFilecoin "Tuk Tuk" Upgrade (NV24): The NV24 Tuk Tuk Upgrade was announced in Q4 2024, bringing major enhancements to network efficiency, security, and developer experience.
This upgrade incorporates several Filecoin Improvement Proposals (FIPs), including:
- FIP-0081: Adjusted the sector initial pledge mechanism, ensuring economic stability during fluctuations in storage growth.
- FIP-0094: Enhanced Filecoin Ethereum Virtual Machine (FEVM) by enabling support for EIP-5656, optimizing memory operations in smart contracts.
- FIP-0095: Introduced a FEVM precompile for retrieving randomness from chain history, improving smart contract performance and security.
Filecoin Fast Finality (F3): The Fast Finality (F3) upgrade aims to reduce transaction finality times on the Filecoin network significantly. Currently, transactions take approximately 7.5 hours (900 epochs) to finalize, but with F3, this will be reduced to just minutes (2 epochs)—a 450x improvement. Announced in Q3 2024, the upgrade is undergoing final testing in Q4, with mainnet deployment targeted for Q2 2025. F3 introduces several key changes to enhance transaction efficiency, smart contract execution, and cross-chain functionality. The upgrade implements the MCOPY opcode, optimizing Solidity contract performance, and historical randomness, which improves unpredictability for decentralized applications.
For storage providers, F3 is designed to streamline onboarding and deal execution by reducing finalization times by over two minutes. This improvement allows for faster transaction settlements and better Service Level Agreements (SLAs) without requiring additional hardware changes. The upgrade also improves node performance, making light clients more resource-efficient and increasing accessibility for new participants.
Filecoin Web Services (FWS): Filecoin Web Services (FWS) expanded Filecoin's capabilities beyond storage, introducing a programmatic decentralized cloud framework.
FWS is designed to:
- Provide unified billing and composable service modules for developers.
- Introduce Proof of Data Possession (PDP) for hot storage, solving retrievability issues.
- Expand Filecoin’s market presence by making its decentralized cloud competitive with centralized cloud providers.
This aims to simplify services like unified billing and encourage the reuse of components for storage primitives. These features are intended to lower entry barriers for developers, boost network revenue, and improve overall network functionality. For developers, it may provide easier access to a suite of decentralized services, potentially enabling the creation of more sophisticated decentralized applications. For users, it could translate to a more seamless experience when interacting with Filecoin-based services.
Layer-2 Scaling & Cross-Chain Storage: At the FIL Bangkok, the Filecoin Foundation introduced new Layer-2 (L2) solutions to enhance scalability, AI adoption, and decentralized data management. The launch of Basin, Akave, and Storacha expands Filecoin’s modular infrastructure, improving FVM compatibility, multichain interoperability, and high-performance storage solutions.
- Basin, the first data-focused L2 on Filecoin, integrates hot and cold storage for real-time and archival data, supports S3 compatibility for easier cloud migration, and is already being utilized for applications like WeatherXM and Recall Network
- Akave launched the Yucca testnet, introducing onchain Data Lakes designed for AI workloads, leveraging ZK-proofs for data integrity, and reducing egress costs for enterprise storage.
- Storacha debuted its closed alpha network, designed for high-performance AI data storage. It offers verifiable ownership through UCANs and sharded file handling to enhance large-scale AI dataset management.
Solana Ledger Secured on Filecoin: Collaboration with Triton One & DCENT to secure Solana’s ledger for long-term integrity.
DeStor & Enterprise Solutions: In Q4 2024, DeStor expanded its S3 Cloud Solutions, introducing Filecoin-powered, S3-compatible decentralized storage focusing on security, scalability, and cost efficiency. The solution includes zero-trust security, enterprise-grade compliance, and sustainable infrastructure, positioning DeStor as a competitive alternative to traditional cloud providers. To enhance its offerings, DeStor partnered with Ramo for cost-effective archival storage, reducing expenses by 50% compared to traditional solutions. Additionally, a collaboration with Kabat integrates renewable energy-powered Tier 4 data centers across Germany, Poland, and Estonia, reinforcing its commitment to sustainability. DCENT supports these efforts with a 175PiB QaP-capacity data center in the Netherlands, equipped with GPUs and AMD CPUs for high-performance storage. Further strengthening its network, DeStor partnered with Future Tech Holdings for competitive data management, Akave to improve operational efficiency, and Seal Storage to deliver SOC 2 and HIPAA-compliant storage solutions. These initiatives collectively aim to provide enterprises with scalable, secure, decentralized cloud infrastructure, expanding DeStor’s role in decentralized storage adoption.
Blockfrost x Filecoin (Cardano Integration): In Q4 2024, Blockfrost, an API service that simplifies access to the Cardano blockchain, and the Filecoin Foundation (FF) announced a collaboration to integrate Filecoin’s decentralized storage as a backup layer for Cardano applications. This initiative enhances data redundancy, quality assurance, and decentralization for developers building on Cardano. The integration enables Blockfrost’s IPFS node clusters to be archived on Filecoin, improving data reliability and providing a new service tier for developers. This collaboration ensures secure, scalable access to decentralized storage, leveraging immutable storage and cryptographic proofs such as Proof of Replication and Proof of Spacetime for verifiable data integrity. Blockfrost also utilizes Lighthouse, a Filecoin-based storage platform, to support perpetual storage, encryption, and cross-chain compatibility.
AI & Decentralized Compute CollaborationsSingularityNET x Filecoin (via Lighthouse): In Q4 2024, SingularityNET completed the first phase of its Filecoin integration using Lighthouse, enabling decentralized, permanent storage for metadata and essential files. This integration enhances scalability, security, and cost efficiency, aligning with SingularityNET’s commitment to decentralizing AI infrastructure. The initial phase included support for the Python SDK, CLI, and Daemon, with further developments planned, including a JavaScript SDK, TUI, Publisher Portal, and Marketplace. Leveraging Lighthouse’s storage model, SingularityNET users can store data securely on Filecoin, with a pay-per-use structure set to be integrated later.
Filecoin Foundation x Theoriq, Bagel, Nuklai, Aethir: Advancing AI security, decentralized compute, and metadata storage.
Developer Initiatives & Community GrowthFilecoin Hacker House: 9-day hackathon in Chiang Mai, organized with FilOz, Polaris, and FIL-B.
Filecoin Mainnet 4-Year Anniversary: Filecoin is recognized as the largest decentralized storage network.
Orbit University Challenge: Encourages university blockchain teams to build AI-powered dApps leveraging Filecoin’s decentralized storage.
Recognition & Events- Fast CompanyRecognition: Featured Filecoin in "Next Big Thing in Tech 2024" for its role in decentralized AI.
- Seal Storagex Scientific Research: In Q4 2024, Seal Storage, a decentralized cloud storage platform, strengthened Filecoin’s role in scientific and academic research by providing scalable, enterprise-grade storage solutions. Recognized as a World Economic Forum Technology Pioneer, Seal partnered with institutions such as CERN’s ATLAS Experiment and the University of Utah’s Scientific Computing and Imaging Institute, supporting large-scale projects like NASA climate data analysis for the 2026 IEEE SciVis challenge.
- “Not Your Parents' Web” Study (Internet Archive x Filecoin Foundation): Found that 60% of analyzed URLs are no longer accessible, emphasizing the need for decentralized storage. Filecoin-backed initiatives like IPFS and Starling Lab aim to preserve online content.
GovHub Launch: PowerVote (onchain governance voting) and Fil Poll (community polling platform) were introduced, reinforcing decentralized decision-making.
Filecoin FIL-RetroPGF-2 (Grants Initiative and Distribution Results): The Filecoin community launched FIL-RetroPGF-2 in Q3 2024 to recognize contributions made between April and September 2024, with results announced in Q4. The initiative allocated 270,000 FIL to 97 projects, with the top five recipients receiving 18% of the total funding. This effort provided financial support, visibility, and community engagement to contributors, reinforcing Filecoin’s commitment to ecosystem growth.
FIL-Collateralized Stablecoin (USDFC): In Q4 2024, Secured Finance launched USDFC, a FIL-backed stablecoin designed to introduce stability and liquidity within the Filecoin ecosystem. By allowing FIL holders and storage providers to collateralize FIL for USD, USDFC helps cover operational costs without requiring asset sales, preserving value and network participation. Additionally, it enhances liquidity in lending markets, improving capital efficiency across the ecosystem.
FF 2025 budget: In Q4 2024, the Filecoin Foundation (FF) announced its 2025 budget, outlining funding allocations to support the network’s ecosystem growth, security, governance, and developer initiatives. Key budget areas include:
- Ecosystem Grants: Over $7.2M for general support, FVM-related projects, and network metrics.
- Data Onboarding & Storage Provider Support: $3.2M to enhance adoption and enterprise programs.
- Network Security & Governance: $3.1M for security audits, bug bounties, and governance initiatives.
- Protocol Development & Tooling: Nearly $5.3M for protocol upgrades, developer support, and network tooling.
- Marketing & Community Growth: $7.8M for events, communications, and outreach.
- Regulatory & Policy Efforts: $1.6M for compliance and advocacy.
Fil+ program: The Filecoin Foundation launched the Fil+ Allocator page, a directory of 80+ active Allocators who verify and onboard real client data to the Filecoin network. This resource helps clients find suitable Allocators based on organization type, region, and required replicas, supporting Fil+’s goal of incentivizing useful data storage.
Closing SummaryIn Q4 2024, new storage deals increased by 10% QoQ, driven by AI and scientific data onboarding, blockchain integrations (Solana and Cardano partnerships), and the expansion of Filecoin Web Services (FWS). Storage utilization grew from 30% in Q3 to 32% in Q4, while storage capacity declined by 13% QoQ, reflecting a continued shift toward enterprise-driven, high-value storage solutions. By the end of Q4, 2,263 clients had onboarded data on Filecoin, with 751 clients onboarding large datasets of over 1,000 TiB. As of December 31, 2024, over 4,700 unique contracts were deployed on the Filecoin Virtual Machine (FVM), supporting over 3 million transactions.
Filecoin continues to advance as a decentralized physical infrastructure network (DePIN), establishing itself as a leading enterprise-focused decentralized storage solution while expanding into AI and decentralized compute. In Q4 2024, Filecoin's ecosystem expanded further with Layer-2 scaling solutions (Basin, Akave, and Storacha), enhancing decentralized data management and AI adoption. Additionally, Filecoin implemented the "Tuk Tuk" upgrade (NV24), progressed toward the launch of Filecoin Fast Finality (F3), and introduced the FIL-collateralized stablecoin (USDFC), reinforcing its financial infrastructure.
With continued improvements in scalability, enterprise adoption, and AI-driven applications, Filecoin is positioning itself for long-term sustainable growth as a core infrastructure layer for Web3 and decentralized computing heading into 2025.