Siacoin price prediction: ready for breakout?

There’s more than one way to invest in crypto. Some investors hold the more popular coins. Others try to pick a less well-known token that brings something unique to the table.

If this describes you, Siacoin (SC) deserves a closer look. Nicknamed “the Airbnb for hard drives”, it offers decentralized file storage. It spiked in 2018, but the subsequent price action has been less impressive: it has not reached another all-time high since. What does Siacoin price prediction say: is it a one-hit wonder – or does it actually have a future? 

Sia in a nutshell

Before we look at Siacoin price prediction for 2025  and beyond, let’s take a look at the technology behind Siacoin; this helps understand what makes Sia special.

Sia offers a blockchain-based decentralized cloud storage solution at a fraction of the cost charged by centralized solutions such as Google Drive or Amazon Drive. Being decentralized, it does not need a huge storage facility; rather, users known as “hosts” rent out some of their hard drive capacity to other users called “renters”.

When files are uploaded to the Sia network, they are sliced up in up to 30 chunks, encrypted and distributed across hosts. No single host has a complete copy of the file and, even if they did, it’d still be encrypted. Moreover, Sia uses an error-correction mechanism that can reconstruct the file even if most of the chunks are missing. This ensures two things: only renters can access their files, and they can always access them, even if some of the hosts go offline.

Anyone can become a host on the Sia network: the process is completely automated and uses a widespread blockchain technology known as smart contracts. The contract specifies the amount and duration of storage as well as regular checks called storage proofs. If the host goes offline, they are penalized. These storage proofs are permanently stored on the blockchain.

Siacoin is the native token of this network. Renters use it to buy storage, and hosts receive payment in it. Hosts must also deposit Siacoin as a collateral, further incentivizing them to remain online. It is mined using a Proof-of-Work mechanism.

SC price history: peaks and valleys

If this sounds rather tech-savvy, you’re right: it was first proposed by two computer science students who first presented the concept in a 2013 hackathon. The Sia name was adopted in 2014, and a whitepaper was published in the same year. 

Siacoin has had its spikes, but its overall levels are much lower. Chart: CoinMarketCap

The project soon attracted venture capital funding, and a company called Nebulous was created to manage the Sia project. It has since been renamed Skynet Labs and has transferred project stewardship to a non-profit organization called the Sia Foundation. The foundation, in turn, is funded by subsidies in Siacoin built right in the mining protocol: a portion of each block reward goes to the foundation.

Skynet Labs is now focusing on other projects built on top of the Sia network; we’ll get to them later.

The network and SC were launched in 2015. However, it flew under the radar for the first couple of years, its price fluctuating between USD 0.0001 and USD 0.001.

In a couple of years, however, SC price history got a lot more volatile. It first reached the USD 0.01 mark in 2017, and its further growth was impressive: it spiked at USD 0.094 on January 6, 2018. It could not, however, sustain these levels, and the price was back below USD 0.03 by the end of the year.

As our Siacoin price chart shows, by early 2022, it is again trading around USD 0.01.

What does this mean for Siacoin price prediction 2024? 

Siacoin price prediction 2024: launching Skynet

All the fluctuations notwithstanding, Sia already has a functioning product and active users. SC has uses beyond just HODLing it as an investment. This means that price shifts may not be that critical for Siacoin users.

Still, the project’s techie origins are clearly visible. The Sia file storage solution is geared more towards power users: the user has to set up a wallet, sync their computer to the network which may take hours, get some Siacoin and understand things like smart contracts. Granted, none of this is particularly hard for a crypto enthusiast, but this is more than enough to scare off the average user.

There are third-party solutions built on top of Sia that are more user-friendly, but these may not offer the same price advantage.

This brings to the Skynet Labs/Sia Foundation split. It reflects a larger shift: the foundation views Sia as “public infrastructure”, not the property of a single corporation, so it makes sense to set up a non-profit governing it.

Skynet Labs, on the other hand, is focusing on developing more mainstream products on top of the Sia network. One of these is Skynet, a decentralized internet that uses the existing Sia network to store web content. Note that this content appears as regular websites that can be accessed with any browser; if you’re just browsing the web, there’s little change.

Skynet does promise advantages for its users, though. For one, much like the Sia network, it can deliver lower storage costs – or, in this case, web costing fees. It aims to give its users full control over their data and content: it can be freely exported and moved around. Ultimately, the aim of Skynet is to build an entire network of pages and apps powered by the Sia network and accepting payments in Siacoin. 

Siacoin price prediction 2025: going mainstream

Admittedly, disrupting the entire Internet is a massive undertaking, so Skynet starts small. It is already operational, and adventurous content creators can already host their websites on it. Skynet even features a self-styled “Appstore” listing different projects. The Appstore, however, reflects the current stage of the project: at the time of the writing, it had just 234 projects. Many, if not most, of them are of somewhat niche interest: it lists things like simple online games, Youtube to MP3 converters and “the greatest Harry Potter fanfiction of all time.” 

In other words, at this point, Sia and Skynet seem to attract a limited crowd: more tech-savvy people who appreciate the underlying technology. Winning mainstream appeal is a major task for the project.

It has also seen limited media coverage. Another file storage coin, the appropriately named Filecoin, has been much more popular, which has translated into higher prices: it peaked at USD 191, although it has seen a notable decline since.

Now that Sia Foundation can focus on the network and Skynet Labs can develop consumer products, this may begin to change. Popular websites on Skynet or major tech partnerships would be a major PR win for the network – and this should translate into higher Siacoin prices.

Siacoin price prediction 2030: technical considerations

There are also some technical considerations that should be taken into account when predicting Siacoin prices, especially in the long-term.

Siacoin was conceived as a utility token powering the Sia network and not necessarily as a store of value. For one, there is no cap on the total supply of Siacoin. Developers argue that, as users keep adding more data to the network, more Siacoins will be needed, so a cap would limit the network’s growth.

There are, however, some internal mechanisms regulating the amount of Siacoin.

As noted, Siacoin uses a PoW mining mechanism. It allowed a more rapid creation of coins in the early years of the project, but the rate has been decreasing over time. 

The total supply of Siacoins remains unlimited, but the growth has gotten slower over time. Chart: Siastats.info

Siacoin is also working on a Proof-of-Burn mechanism which would require hosts, that is, sellers of storage, to burn a certain amount of their coins, thus limiting the supply further.

Suggestions from best Siacoin price prediction tools

So far, we’ve considered the history, current status, and planned future developments of the Sia project. But what about any predictions of future price points?
Now, this is a good opportunity to remind you that we do not offer any investment advice here at Paybis. Keeping this in mind, let’s look at some of the most popular crypto price prediction websites.

• Wallet Investor estimates Siacoin could reach USD 0.05 in late 2025. This would mean a solid increase, although not spectacular by crypto standards;
• Price Prediction, another AI-powered price prediction website, mirrors this estimate and also suggests SIA could hit USD 0.05 in 2025;
• Digital Coin is more restrained in its estimates: its 2025 estimate stands at about USD 0.025, and it does not envision Siacoin reaching USD 0.05 before 2029.

Note that these price estimates generally extrapolate existing trends and do not account for any unexpected developments. Things like partnership with a major tech company or launching a popular portal on Skynet could well push Siacoin’s price further, but, of course, there is no guarantee this will happen. 

Siacoin price prediction 2040: long-term estimates

Let’s try putting this all together and see how this affects any long-term price predictions.

Siacoin clearly has many things going for it:

• A working product and an established user base;
• The network is entirely open-source and governed by a non-profit;
• It also has a for-profit corporation working on products with a wider mainstream appeal;
• It has already launched one of these products: Skynet.

There are also some caveats that you should take into account when considering Siacoin as an investment:

• The user base is somewhat limited to more tech-savvy enthusiasts;
• There is no limit on the total amount of Siacoin, although there are mechanisms regulating it;
• To date, Siacoin has seen limited media exposure, as opposed to other file sharing coins.

So what to make of it? Again, any investment decisions are up to you. Still, the fundamentals and price prediction tools suggest that, at the current price levels, Siacoin could be a solid investment.

SC has a clear use, which should limit its downside risks. On the other hand, this probably also limits its growth potential. 

As always, your own research is highly recommended. Fortunately, gaining some first-hand experience with Siacoin is simple; it has working products that you can try right now. Who knows, maybe this may turn out to be your preferred file storage platform!

If you’re looking for a simple way to convert between Siacoin and dozens of fiat currencies, check out the Paybis Siacoin calculator. And, of course, check back for more deep dives!

FAQ

Is Siacoin a file storage token?

Siacoin is already used to power a decentralized file storage solution, but its ambitions go beyond that. With the Skynet release, it aims to build a decentralized Internet: a blockchain-based system for storing, managing and distributing web content.

Can I actually use Sia for file storage?

Yes! You can download a Sia client right now, grab some Siacoins and actually start using Sia for file storage. This can be a great way to gain some first-hand experience with the project.

Alternatively, you can consider a third-party service that is built on top of the Sia network.

Will Siacoin fail?

We cannot guarantee the success of any crypto project, but we can consider the fundamentals. Siacoin already has a functioning product and a growing community of users. The network is open source; it can continue without its original developers. Therefore, the Siacoin clearly has what it takes to survive.

Can Siacoin reach USD 1?

At Paybis, we do not offer any price predictions, so you’re encouraged to do your own research here. Most price predictions from other websites, however, don’t see Siacoin reaching this level in the near future.

Is Siacoin a good investment?

As with any investment, the decision is ultimately up to you. Consider the fundamentals of Siacoin, your risk appetite and expected return on investment. And, even though past performance is not indicative of future results, it does at least provide a reference.

Written by

Didzis Veinbergs

Didzis Veinbergs has been writing about finance for more than 10 years, with experience in forex, crypto, and payments. You may find him rambling about things on Twitter, looking all professional on LinkedIn and hanging around on Facebook.