How did the Internet Computer (ICP) token get into the TOP 10 list?

The cryptocurrency called Internet Computer (ICP) was around $ 630 when listed on Coinbase on Monday. However, after being listed on the Binance exchange, the price rose to $ 3,093 as of Tuesday. Meanwhile, HitBTC; ICP reported a high of $ 407 for its price.

When such price differences occurred between crypto money exchanges, a crazy trading spree began in the Internet Computer (ICP) market. The ICP market cap has increased so much that it is among the top 10 cryptocurrencies. XRP surpassed the market’s vigilantes such as Dogecoin (DOGE) and Cardano (ADA) and climbed to fourth place.

ICP price comparison on different crypto exchanges. Source: TradingView

Traders who entered the process of taking profit caused a correction in the price. During Wednesday’s trading, the ICP / USD pair on Coinbase and Binance was tracked at $ 338. On HitBTC, the price was $ 14 higher. This withdrawal resulted in the ICP falling from fourth to eighth on the cryptocurrency list.

Why did the price of ICP go up?

Defining itself as a “blockchain-based cloud computing project”, ICP’s sudden entry into the leading cryptocurrencies caused many crypto traders and analysts to be caught off guard.

The support of high profile institutional investors for the project changed the color of the business. These include a New York-based cryptocurrency-focused hedge, led by the United States-based angel investor Andreessen Horowitz, known to support Twitter in its early stages, and Olaf Carlson-Wee, who previously served as a risk officer at Coinbase. ) fund, Polychain Capital.

The ICP token was listed on the largest cryptocurrency exchanges right after its launch last Friday. This situation put ICP tokens directly in front of individual traders.

Growth prospects are high

DFINITY, the name behind the ICP, had raised $ 163 million in private funding. The nonprofit received $ 4.1 million in Bitcoin (BTC) and Ether (ETH) in February 2017. In May 2018, it airdroped $ 35 million worth of ICP tokens (formerly DFN) for its first supporters. This amount corresponded to 0.8 percent of the initial ICP supply.

Airdrop participants received IOU versions of their ICP backlog in September 2020. The day before the token debuted on Coinbase, they had the chance to transfer to ICP.

After being listed on Binance and exceeding $ 3,000, the ICP price collapsed 89 percent. Source: TradingView

Dfinity aims to expand its data center and developer networks. The nonprofit operates seven subnets with 68 nodes in 12 independent data centers. Their goal is to reach 123 data centers with 4,300 nodes by the end of 2021.

Similar to Bitcoin and Ethereum, the infrastructure growth prospects in the Internet Computer ecosystem may make speculators look at ICP as a long-term investment. Investors may pay more attention to these types of assets to overcome the macroeconomic inflation problem.

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