Internet Computer Token Sees Third Consecutive Day of Growth Amid Rising Burn Cycle

The Internet Computer token (ICP) has experienced a surge in value, rising to an intraday high of $12 and marking a significant increase from last month’s low of $8.83. This upward trend can be attributed to the latest data showing a substantial rise in the ICP burn cycle, indicating the token’s value to developers and users.

ICP Burn Cycle Continues to Rise

The cycle burn rate has seen an impressive jump of over 8,800% on an annual basis, with the current rate standing at over 849 billion cycles. This surpasses the 90-day average of 512 billion, suggesting that the network is performing well and that the number of ICP tokens in circulation is not expanding rapidly.

Key Statistics:
– Total ICP tokens burned: over 849 billion cycles
– 90-day average: 512 billion cycles
– Annual growth rate: over 8,800%

Record High in Canisters and Smart Contracts

The Internet Computer protocol has reached a record high of 879,670 canisters, or smart contracts, marking a significant increase from 374,000 during the same period last year. This growth demonstrates the network’s potential and its ability to attract developers and users.

Challenges in Decentralized Finance and Bitcoin Digital Twin

Despite the growth in canisters and smart contracts, the Internet Computer’s ecosystem has stalled recently. The network has only 11 decentralized finance apps, with a total value locked of just over $52 million. This is significantly smaller compared to other popular chains like Base and Sui.

Similarly, Chain-Key Bitcoin, a digital twin of Bitcoin on the Internet Computer, is struggling to gain traction. Its market cap stands at $25.7 million, down from last year’s peak of over $75 million, indicating waning interest.

ICP Price Analysis and Future Outlook

The daily chart shows that the Internet Computer token has bounced back after hitting a low of $8.83 in December. It has broken above the crucial resistance level at $10.97, the highest swing point from July last year. ICP has also moved above the 50-day and 200-day Exponential Moving Averages, suggesting that bulls are gaining momentum.

Tips for Investors:
– Keep an eye on the token’s performance above the 50% Fibonacci Retracement level and the lower boundary of the Murrey Math Lines trading range.
– Watch for a potential 30% increase from the current price as bulls target the next major resistance at $15.58.

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