The Internet Computer network’s native token, ICP, has recently become one of the most talked-about assets in the crypto world, with a remarkable 222% growth last month. In the past 24 hours, ICP’s price surged by 15%, surpassing the $15 mark, while its 24-hour trading volume increased by 107% to reach $614 million. This surge propelled ICP past Shiba Inu (SHIB) to become the 17th largest cryptocurrency by market value, with a 70% increase in just the last week.
ICP’s price movements are not solely dependent on Bitcoin‘s volatility but are also influenced by its varied functionalities. The token’s value is affected by its capacity to store value and the ability to stake through its Network Nervous System (NNS).
The NNS acts as a decentralized autonomous organization (DAO) for the Internet Computer network, allowing users to participate in an open, unsupervised governance system by staking ICP tokens in neurons. This system enables participants to vote on key decisions by considering proposals presented by the community.
To understand the rise of the altcoin, one must examine the goals of the Internet Computer in detail. At its core, the Internet Computer aims to transform blockchain infrastructure into a “world computer,” facilitating decentralized operation of software and systems without reliance on traditional IT backends.
This integration allows for seamless operation with the broader decentralized aspects of Web3. As doubts about any concrete solutions built by the Internet Computer arise, a renewed wave of investor interest is shaping up towards the internet’s long-term vision.
The volatility in ICP has increased over the past week, with a notable 135.0% rise in trading volume. Additionally, the circulating supply of ICP increased by 1.08% during the week, indicating a larger number of tokens in circulation, which could potentially exert downward pressure on the price.