Smart contract activities on the Filecoin network have surged following the Filecoin Ethereum Virtual Machine (FEVM) launch in March 2023.
More smart contracts deployed on Filecoin
On-chain data reveals that the number of unique contracts deployed is currently at 2,200, while contract transactions now stand at 224,200 after recording a 1,100 increase within 24 hours of market activity. Contract balance charts are also showing a steady 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 for protocols launched on layer-2 platforms such as Arbitrum and Immutable X to leverage Filecoin’s storage and security. Developers also have more latitude since most EVM tooling can be used within the Filecoin ecosystem.
Following the launch of the FEVM, developers have been building and deploying unique smart contracts on Filecoin.
While there were only 11 active contracts on the network before launch, Filecoin has observed that new businesses and innovations have been launching on its rails, keen on leveraging the capabilities of the Filecoin ecosystem.
Impact of the SEC on FIL
Despite the spike in activity, the number of deployments and network utility has declined over the last three months.
The dashboard shows a notable jump in activity in late March and early April. However, as the months progressed, activity tapered. Specifically, activity was comparatively low in the first ten days of June.
Still, with Filecoin leading the decentralized storage market, the introduction of smart contracts and launching the FEVM could trigger more developments as the platform becomes more programmable.
The United States Securities and Exchange Commission (SEC), while taking legal actions against Binance and Coinbase, two of the largest cryptocurrency exchanges; listed filecoin (FIL) as an example of an unregistered security. In response, FIL prices fell and remain under pressure, dropping 42% from early April 2023.