The Internet Computer smart contracts (ICP) token has left the whole crypto community thunderstruck after its valuation jumped to about $45 billion two days after launch. Currently, the token is the eighth-largest cryptocurrency by market cap according to Coinmarketcap.
ICP token was listed on some top exchanges, including Coinbase Pro, OKEx, and Binance on Tuesday. However, the first day of trading saw a wild price variation for the token. About 14 hours after launch, $1.8 billion worth of ICP exchanged hands, per CoinGecko.
Following its Coinbase listing on Monday, ICP price traded to about $700 before it slipped down to $250 and finally rising to nearly $450. The bid for the token soared to about $3,093 on the Binance platform the next day. However, the price crashed on Binance by nearly 89% to about $330 on Wednesday.
The Internet computer was created by Dfinity Foundation and had been in development for close to 5 years. Like Ethereum, the platform allows the use of smart contracts for decentralized projects. This makes it a huge
ICP and the underlying protocol are designed to help software developers and content creators that require servers to publish online. Hence, with Internet Computer, they don’t have to rely on the services of internet giants like Amazon. The project aims to lower costs for users, says Dominic Williams, the founder.
What Caused Internet Computer’s Outstanding Surge?
One possible reason for the meteoric surge could have been the involvement of marquee institutional players in the project. Some such institutions include Polychain Capital, a hedge fund company focused on crypto investments and Andreessen Horowitz, Silicon Valley-based venture capital firm.
As part of its trajectory, Dfinity plans to grow its data centres to 123 before 2022, which would host 4,300 nodes. However, the organization currently runs 68 nodes across12 data centres.