The Filecoin token dropped 4 % on 7 October 2025, slicing through $2.39, $2.37 and $2.36 while posting a record intraminute volume of 530.000 FIL. The selloff hit both institutional and retail wallets and, if it persists, will shrink the reward for storage providers plus push some offline. The event touches every FIL holder, every storage miner and every fund that tracks decentralized infrastructure.
During the U.S. trading window, FIL slid through three support prices as fell 3.4 %, a sign that the move was part of a broader risk-off shift. Data shows the pattern is not new — on 15 July 2025, 5.67 million FIL were traded in one session and the price dropped 6 % from $2.66 to $2.51. Data notes that when the price compresses, provider margins compress faster and exits follow. (A support level is simply a price where past buy orders have repeatedly stopped a decline.)
Context and market impact for Filecoin
Visible institutional liquidation widens the bid-ask spread and lifts implied volatility, raising the bar for new institutional money that needs stable marks. A lower FIL price cuts provider revenue; if the cash flow shortfall lasts, racks are powered down and stored bytes leave the network.
The protocol issues and burns tokens in proportion to usage; 2 000 million FIL is the hard cap, 799.05 million are unlocked and 673.8 – 679.6 million circulate today, with further releases tied to storage deals and miner pledges.
IPFS offers similar content addressing without a token, and during price drops, buyers question why they need FIL at all.
The session shows FIL still reacts violently to concentrated selling. Near-term direction hinges on whether institutional bids return or whether the team’s planned protocol upgrades besides AI integrations restore provider margins. The next prints at former support levels and the shape of follow-up volume will signal which side is winning.
