Smart contract activity on the Filecoin network has skyrocketed following the launch of Filecoin Ethereum Virtual Machine (FEVM) in March 2023.
More smart contracts deployed on Filecoin
On-chain data shows that the number of unique contracts currently stands at 2,200, while contract transactions now stand at 224,200, after an increase of 1,100 within 24 hours of market activity. Contract balance charts also show a stable picture upward trend.
The Filecoin Ethereum Virtual Machine (FEVM) enables the execution of smart contracts on top of the Filecoin network.
Specifically, the FEVM is a runtime environment for smart contracts on the Filecoin network. These smart contracts, also called actors, can be written in Solidity.
The FEVM is fully compatible with Ethereum Virtual Machine (EVM). Accordingly, the platform allows new ERC-20 tokens to be launched on the Filecoin network.
At the same time, it is possible that protocols launched on layer 2 platforms such as Arbitrum and Immutable Developers also have more leeway as most EVM tools can be used within the Filecoin ecosystem.
After the launch of the FEVM, developers built and deployed unique smart contracts on Filecoin.
Although there were only 11 active contracts on the network prior to launch, Filecoin has noted the emergence of new companies and innovations eager to leverage the capabilities of the Filecoin ecosystem.
Impact of the SEC on FIL
Despite the spike in activity, deployments and network usage have declined over the past three months.
The dashboard shows a notable increase in activity in late March and early April. However, as the months progressed, activity decreased. In concrete terms, activity was relatively low in the first ten days of June.
Still, with Filecoin leading the decentralized storage market, the introduction of smart contracts and the launch of the FEVM could lead to more developments as the platform becomes more programmable.
The United States Securities and Exchange Commission (SEC) has taken legal action against Binance and Coinbase, two of the largest cryptocurrency exchanges; mentioned filecoin (FIL) as an example of an unregistered security. In response, FIL prices fell and remain under pressure, falling 42% as of early April 2023.
