The cryptocurrency market is facing more volatility, and one of the coins that took the most of it is Internet Computer (ICP). Although ICP was initially expected to decentralise the Internet and take the project to the next level, the token is currently among the biggest losers in today’s trading session.
In the newest possible data, ICP has been at the price of $7. 28, down in the last twenty four hours by a good 15 per cent from the preceding day. This number has dramatically reduced the token to outside the top 30 most valuable crypto tokens in terms of market cap something it had occupied for several months. ICP has registered $89 million in trading volume for the last 24 hours which clearly suggests that the bearish trend is prevalent.
Market analysts cite the following factors as the causes of abrupt decline of ICP. In the first place the global cryptocurrency market is now trading in a rather turbulent state over the past few days, despite the overall upward movement activating large concerns around regulations in key markets such as the US and China. This broader market uncertainty has been even more noticeable with such projects such as Internet Computer, which are considered to be higher-risk investments.
Further, speculation affecting the Internet Computer ecosystem in various social media platforms has led to the sell-off. While there is no conclusive evidence for the aforementioned rumors, the crypto market may have reacted unfavourably to any such information and is most likely have contributed to the poor price performance of ICP.
Internet Computer is part of the ecosystem created by the DFINITY Foundation that also reacted to the market instabilities. Speaking in a statement that they issued earlier today, the foundation sought to calm users that their favorite platform is still in development. They underscored that recent price movement of ICP does not have any relation to how healthy the Vend’s network is and encouraged users to look at the long-term outlook for the project.
Nevertheless, there is some anxiety among the investors about the future scalability of Internet Computer in the context of growing competition in the blockchain market. In recent weeks and months, other layer-1 protocols have gained prominence and layer-2 scaling solutions are gaining increasing adoption which has increased the focus on projects such as ICP to show their utility.
On the technical front, price of ICP has violated several support idones which has resulted in stop loss margins and cumulative selling pressure. Chart analysts go further to indicate that the next major support level for ICP is probably around $6. support level is roughly the said 50 mark which can act as the price floor for the meantime.
But for ICP holders the picture is not so bleak. Still, some market participants consider this sharp decline an excellent purchase opportunity, referring to the Internet Computer’s indispensable value proposition. Project’s objective aimed to provide decentralized cloud storage services remains alluring to developers as well as foster new enterprise use cases.
The Internet Computer ecosystem has been growing throughout the year with more and more decentralized applications (dApps) being developed on its system. Hiring a developer is something that is done due to the first-class infrastructure that is present in ICP, which provides the necessary environment for the development of intricate smart contracts and decentralized services, not suffering from scalability problems, with which certain other similar blockchain networks struggle.
As for the latest advancements, more information about the Internet Computer project points at the system’s advances in increasing integration with other blockchains. The development of chain key cryptography and the further development of new mechanisms of cross-chain communication can make ICP a key player in the continuation of development of a large blockchain ecosystem.
ahead, the DFINITY Foundation has planned the following plans for the rest of 2024 to 2024 year and following this plan. Some of these are an even more refined, storm-proven decentralized scalability and security for the network and even the process of establishing the Internet Computer as a destination for developers and enterprises alike to build upon.
Recent events such as the current ICP price drop will remain a clear indication of the volatility inherent in the growing crypto market. Indeed, as many people believe that the long-term trend of cryptocurrencies remains bullish, short-term volatility can be sharp.
Now it is up to ICP and the Internet Computer project themselves as they go through this difficult time. The next few days are going to be very important to establish if this is just a downward blip or a beginning of a meltdown. In the world of cryptocurrancy, as seen with this investment, it is encouraged that people do their due diligence and be weary when investing.
In other words, this price action that is currently in play for ICP may not sit well with some people given the nature of the cryptocurrency space. The long-term effectiveness of Internet Computer project will however greatly be determined by its ability to fulfill the described capabilities of Internet Computer as a decentralized, scalable and secure approach to the traditional internet solutions.
+ There are no comments
Add yours