Amid ICP’s debut on Coinbase, it ranked 8th just behind XRP, with a market cap of over $46 billion. However, the token is now ranked 24th with a market cap of $4.7 billion.
Dfinity Foundation’s ICP token price has notably plunged, shaving off about 95% from its May 10th launch price high of $630. The token was trading at $35.03 at writing time, a 24-hour drop of 5.6%, with a high of $38.85 and a low of $33.56 in the same period.
ICP took off fast in May, enlisting on multiple exchanges including US-based Coinbase Pro, Binance, Huobi Global, and OKEx. However, during its debut on Coinbase Pro, the price shot to $700 before quickly plummeting to a $250 low. At the end of 24-hours following this launch, ICP’s price settled at just about $400. Since then, its value has been on a steady decline, and it now hovers at around $34.
Amid ICP’s debut on Coinbase, it ranked 8th just behind XRP, with a market cap of over $46 billion. However, the token is now ranked 24th with a market cap of $4.7 billion.
In comparison, other cryptocurrencies have been slowly recuperating from the latest market sell-off. Bitcoin, for instance, has gained 4.8% in 24-hours to a price of $34,497.86 and Ethereum has gained 2.5% to $1,972.02 over the same window. Most of the other alternative coins have also followed suit.
ICP Token Price Near 95% Loss
Some experts have attempted to explain ICP’s 2-month free fall. Research Chief at Synergia Capital, Denis Vinokourov said that “the fact that the token was launched during such a boisterous [market] likely pushed initial valuation into the upper range of expectations.”
Developed in 2016, ICP became the governance coin to The Internet Computer – a project of the Dfinity Foundation. Under the leadership of entrepreneur Dominic Williams, the project intended to introduce a decentralized public network. This would make DeFi applications “uncensorable”. Its creators tout it as an “extension of the internet” and an alternative to the $370 billion cloud computing market. The latter is largely monopolized by high-end tech companies with centralized servers.
Venture capitalists including Andreessen Horowitz, and Polychain Capital raised over $120 million in support of the objective. They were backed by Scalar Capital, Multicoin Capital, CoinFund, and Greycroft Partners.
The latest update on the project was on June 21, when Dfinity introduced the open-source Quill toolkit to maximize the security and convenience in managing cold wallets.
Nevertheless, Vinokourov went on to say, “As great as the tech is on paper, it is, to a large extent, unproven…Also, there is little evidence of teams actively building on ‘The Internet Computer’”.
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