Web3 is a concept that has attracted 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 cryptography, since both are based on concepts of decentralization.
As such, many major crypto projects are pushing for the adoption of Web3, one of which is Internet Computer (ICP). This project hopes to change the way people browse the internet, store data, and interact with the web.
Why is Internet Computer (ICP) idle?
To understand why ICP is inactive, it is important to understand the basics of the project.
Internet Computer is a blockchain network that seeks to bring the implementation of smart contracts 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 (DEXs).
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 and tutorials for people who want 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, PICs can be used to cover the costs of implementing smart contracts and storing data.
If the demand for governance or transactions decreases, the price will also decrease because fewer people will need the token, so there will be fewer bought and more sold, lowering the price. This action is most likely the cause of the decline in the ICP in recent months. Overall, fewer projects are being built on the platform leading to a decrease in demand for the token. In addition, the cryptocurrency markets as a whole are falling, which could also be a factor in the recent price drops.
ICP was launched in May 2021 for around $365. It fell sharply after release, losing almost 95% of its value in a few days. Since then, it has continued to fall steadily and now hovers around $8. After the initial release, many were suspicious of the developers of Internet Computers, as some were unable to locate or sell their tokens. After taking a closer look, some began to believe that project members had sold their tokens for a strong profit, leaving retail investors to lose almost all of their investments. For this reason, Internet Computer is currently facing a class action.
Internet Computer Price Movements (KPIs)
ICP reached all-time highs on the day of its release, appreciating at over $750 and ranking third among all cryptocurrencies in terms of market cap. In a few days it dropped to just over $100. It eventually reached $50, where it hung in the balance for several months. Towards the end of 2022 and in the first half of 2022, the ICP continued to fall, reaching a low of around $6 in May 2022.
Again, this drop could be caused by anything from lack of demand to a general collapse of the cryptocurrency market.
Cryptocurrency Market Cycle
One way the cryptocurrency market can be measured is by comparing Bitcoin with other tokens. If altcoins, or any token that is not Bitcoin, are outperforming Bitcoin, then it is considered “altcoin season”. At the moment, it’s 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. Cryptocurrency markets have been suffering for some time, with major tokens falling 50% in recent months. ICP was one of the tokens captured in this recession.
Where to Buy Internet Computer (ICP)
Although ICP is still a relatively new project, it is available on more major crypto trading platforms. Among the best offering KPIs 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 start trading on one of these platforms, create an account and provide basic personal information. You can then link your bank account and start trading, typically within 24 hours.
So, Internet Computer (ICP) is dead?
Internet Computer is a very ambitious project that is trying to change the Internet as a whole. While it has taken some steps towards this goal, it is struggling to gain steam within the crypto community. It faces huge competition from Ethereum and Cosmos. These big competitors have made it difficult for Internet Computers to attract new projects that will increase the demand for PICs.
The ICP has declined steadily over the past year. In order for a reversal to occur, Internet Computer would have to involve some large and popular projects to increase the hype surrounding the project. However, this task is difficult because cryptocurrency markets have been slow and many new projects are looking towards larger blockchains. While it will be difficult for ICP to recover, it is certainly a possibility.