The Internet Computer Protocol was one of the most anticipated crypto projects in 2021. Its public token launch was prefaced with high expectations and investor speculation, only for the price to fall dramatically within the following weeks. Unfortunate timing of the 2022 extended bear market has seen many coin falter, and $ICP is one of many that never managed to recover its initial market value. Some crypto analysts have criticized the coin's performance, claiming that a climb back to its ATH (All Time High) is unrealistic.
However, unlike the majority of crypto projects currently in existence, The Internet Computer Protocol is much more than a single Layer blockchain, nor is it a simple DeFi token. The Internet Computer is its own vibrant ecosystem--its competitors are legacy tech companies, like Google or Amazon (specifically AWS, Amazon's cloud hosting service), because the Internet Computer Protocol is a revolutionary blockchain capable of handling full stack development completely on-chain.
In this article, let's take a look at The Internet Computer's unique capabilities and see what the future price action could look like for $ICP, its native token.
What Is The Internet Computer?
Launched in May 2021 by DFINITY, the Internet Computer is a “world computer” ideal for building and hosting dApps. Although the token $ICP launched in 2021, development of the Internet Computer began five years prior. The project attracted top investors and venture capitalist firms like Eterna Capital, Amino Capital, Polychain Capital, Aspect Ventures, and the renowned Andreessen-Horowitz. Barely a week after launch, ICP entered CoinMarketCap's top ten with a total market capitalization of $45 billion.
As you know, the 2008 financial crisis gave rise to Bitcoin, allowing users to take control of their money. Similarly, the Internet Computer is taking a leaf out of the Bitcoin playbook. The project aims to decentralize the internet, shifting power from tech giants to developers and users.
The Internet Computer can scale its transaction speed and on-chain storage as needed, thanks to its unique node architecture, which is run on specialized hardware. These node machines allow developers to build on top of the Internet Computer and deliver decentralized applications. DFINITY founder Dominic Williams, speaking to CoinDesk, said: “We want people to abandon traditional IT and move all systems and services to smart contracts.”
How Does the Internet Computer Work?
The internet as we know it is hosted on centralized servers and managed through the internet protocol (IP), a set of standards for cross-communication between computers and servers. IP addresses are unique, allowing servers to differentiate between millions of computers on the internet and serve the correct information.
Although most DeFi applications have the blockchain as their data layer, their interfaces are hosted by cloud services like Microsoft and AWS, meaning they remain vulnerable. According to Williams, "You're not really interacting with a blockchain. You're interacting with a website that's interacting with a blockchain. You're interacting with Amazon Web Services."
In contrast, applications deployed on the the Internet Computer blockchain don’t need a dedicated server but instead move data between different nodes.
The Internet Computer started with 48 data centers and 1,300 nodes when it launched. By the end of 2021, over 123 centers and 4,300 nodes were supporting the network, showing that mission of decentralization is well underway.
Another unique advantage that the Internet Computer has is smart contracts known as canisters. Canisters can be thought of as smart contracts but on a much more complex level. This is why the Internet Computer is capable of running both mutable and immutable smart contracts on-chain.
Thanks to this setup, the Internet Computer Protocol powers a blockchain that can efficiently process data at high performance. With the ease of building/deploying scalable dApps and strong developer community support, it’s no surprise that the Internet Computer consistently ranks in the top two blockchains for Github's most commits made almost every single week.
Bitcoin Integration and How This Can Impact the Price
One of the most anticipated DFINITY updates is native Bitcoin integration. This is revolutionary as it will allow the Internet Computer to directly sign transactions on the Bitcoin network. This means that Bitcoin can be utilized without having to wrap and bridge, potentially putting your Bitcoin at risk for hacking.
Bitcoin’s use cases are currently few: it’s a store of value and a speculative asset — nothing more. Once the Internet Computer integrates successfully with Bitcoin, it could create a robust Web3 ecosystem fostering both Bitcoin and the Internet Computer's adoption.
Therefore, the native Bitcoin integration is not only a historical moment in technology but it could significantly impact ICP’s price. With Bitcoin holding about 40% of the crypto market cap and over a hundred million wallets, this could have a network effect on ICP token utility as more users interact with the Internet Computer blockchain.
$ICP Price Action So Far
$ICP price experienced a sharp drop in May 2021 from its all-time high. $ICP plunged from $750.73 to $81 in June and has since maintained a downward sloping trend. The token currently ranks 36th on CoinMarketCap, with a market cap of $1.52 billion. Still, current market action seems to indicate that there is strong support in the $6-7 range. Even when Bitcoin price plummeted below $20k, $ICP was one of the few coins in the market to maintain its price.
It is important to remember that while all cryptocurrency perform based on speculation, $ICP is one of the few tokens that is a utility token. $ICP must be burned to create Cycles, which are then used to deploy and maintain smart contracts on the Internet Computer. This is unlike the majority of cryptocurrency, which lack in practical application.
What Analysts Are Predicting about $ICP
Wondering if ICP coin price prediction is looking good or not? Well, it depends on who you ask.
After several corrections and short rallies, market sentiment remains slightly bullish for ICP. Most analysts anticipate a strong finish in 2022, with the price expected to grow steadily over the coming years.
PricePrediction.net remains unfazed by ICP’s price history. The website’s Internet Computer price prediction forecasts a gradual climb to $100 within the next decade. PricePrediction.net’s ICP price prediction for 2022 expects the coin to trade at an average price of $9.86 and eventually rise to $31.14 by 2025. It predicts a trading price of $181.28 by 2030.
Other websites like TradingBeasts and DigitalCoinPrice predict a slightly bullish trend. TradingBeasts’ ICP price prediction forecasts an uptick above $15 by 2024. The site expects a bump to around $20 by Dec. 2025.
DigitalCoinPrice shares a similarly bullish view, with steady price growth expected over the decade. The site's ICP price prediction expects the coin to average $7.98 in 2022 and $9.03 in 2023. Its ICP price prediction for 2025 projects a move to an average price of $11.77, with a further rise to $28.06 by 2030.
In the meantime, CryptoNewsZ predicts “a bullish trend” in 2022, with the price almost doubling by December.
However, WalletInvestor believes ICP might not be a good investment in the long term. The site predicts a plunge to $0.16 within a year, followed by a swing between $1 and $2 in 2024. WalletInvestor’s long-term ICP price prediction is quite bearish, with a drop to $0.80 expected by the end of 2025.
Conclusion
ICP has had its fair share of troubles since its launch. Although it’s nowhere near its previous highs, it has managed to maintain a stable price since last year amid a bearish crypto market.
Most analysts predict a steady rise in ICP’s price over the coming years, with the development roadmap presenting new and exciting features in the pipeline. Native Bitcoin integration should be live on the mainnet by Dec. 2022, an event that will no doubt boost ICP price as more utility is unlocked.
It seems that this might be a good time to load up on ICP in anticipation of upcoming upgrades and features. However, it’s always essential to consider the volatility of cryptocurrencies and macro economic conditions.
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