Is Internet Computer (ICP) Dead?

Looking to invest in ICP while it's down? Coinbase lets you buy and sell Internet Computer in seconds!

Web3 is a concept that has drawn the attention of many in recent years. The idea of Web3 is to create a more decentralized and open version of the current internet and web system. This concept goes hand in hand with crypto, as both are based around concepts of decentralization. 

As such, many major crypto projects are pushing for the adoption of Web3, one of which being Internet Computer (ICP). This project is hoping to change the way people browse the internet, store data and interact with the web. 

Why is Internet Computer (ICP) Down?

To understand the reason that ICP is down, it’s important to understand the basics of the project. 

Internet Computer is a blockchain network that seeks to bring smart-contract deployment into the mainstream. Smart contracts are programs that automate tasks on the blockchain. Smart contracts can be used in a variety of scenarios, from blockchain-based video games to decentralized exchanges (DEX). 

Internet Computer aims to create a platform where developers can bring their ideas to life through the blockchain. It has a software development kit (SDK) where developers can code their ideas as well as tutorials for people looking to explore blockchain development. 

ICP is the token that powers the blockchain. It serves two main purposes: governance and transaction fees. For governance, the token can be used to cast votes on proposals to give the community a say in which direction the project goes. For transaction fees, ICP can be used to cover the costs of smart contract deployment and data storage. 

If the demand for governance or transactions falls, then the price will fall as well because fewer people will need the token, so there will be less bought and more sold, driving the price down. This action is most likely the cause of ICP’s fall in recent months. Overall, fewer projects are being built on the platform leading to a decreased demand for the token. Additionally, crypto markets overall are down, which could also be a factor in the recent price drops. 

ICP launched in May 2021 for around $365. It fell sharply after the release, losing nearly 95% of its value in just days. Since then, it has continued to fall steadily and now hovers around $8. After the initial release, many were suspicious of Internet Computer developers, as some were unable to locate or sell their tokens. After taking a closer look, some began to believe that members of the project had sold off their tokens for a hefty profit while leaving retail investors to lose nearly all of their investment. Because of this, Internet Computer is currently facing a class action lawsuit. 

Internet Computer (ICP) Price Movements

ICP reached all-time highs on the day of its release, appreciating to over $750 and ranking third among all cryptocurrencies in terms of market cap. Within days it fell to just over $100. It eventually reached $50, where it hovered for several months. Towards the end of 2022 and in the first half of 2022, ICP has continued to fall, reaching a low of around $6 in May 2022. 

Again, this fall could be caused by anything ranging from a lack of demand to an overall slumping crypto market. 

Cryptocurrency Market Cycle

One way the cryptocurrency market can be measured is by comparing Bitcoin to other tokens. If altcoins, or any tokens that are not Bitcoin, are outperforming Bitcoin, then it is deemed “altcoin season.” As of right now, it is not altcoin season, as Bitcoin is outperforming almost all other major cryptocurrencies in recent months.

Although Bitcoin is outperforming other tokens, it is not doing well. Crypto markets have been suffering for some time, with major tokens down upwards of 50% in the last few months. ICP was one of the tokens caught in this downturn. 

Where to buy Internet Computer (ICP)

Though ICP is still a relatively new project, it is available on multiple prominent crypto trading platforms. Among the best that offer ICP are Coinbase Global Inc. (NASDAQ: COIN) and Huobi Global. These platforms are known throughout the crypto community for their security, ease of use and low fees.

To begin trading on either of these platforms, create an account and provide basic personal information. You can then connect your bank account and begin trading, typically within 24 hours. 

So, Is Internet Computer (ICP) Dead?

Internet Computer is a highly ambitious project that is seeking to change the internet as a whole. While it has made some steps towards this goal, it is struggling to gain steam within the crypto community. It faces huge competition from Ethereum and Cosmos. These large competitors have made it difficult for Internet Computer to attract new projects that will increase the demand for ICP. 

ICP has gone down steadily for the past year. In order for a reversal to happen, Internet Computer would have to rope in some large and popular projects to increase the hype surrounding the project. However, this task is difficult because crypto markets have been sluggish, and many new projects are looking towards larger blockchains. While it will be hard for ICP to recover, it is certainly a possibility.