Internet Computer (ICP) Rallies as Volume Explodes Before Tokenomics Update - Crypto Economy

TLDR:

• ICP trading volume skyrocketed 190% in 24 hours, reaching $186.21 million.
• The Mission70 initiative proposes a drastic reduction in the token’s inflation rate for this year.
• The protocol recorded its second-highest weekly token burn since September 2024.

In just 24 hours, Internet Computer recorded a 17% rally, pushing its price to $3.70. This surge coincided with an explosion in trading volume that nearly tripled the previous day’s figures

Data revealed by CoinGecko indicates that daily volume climbed to $186.21 million, reflecting a 190% increase in investor interest for this decentralized infrastructure and computing protocol.

This renewed optimism is no coincidence; the ecosystem is prepared for a key announcement regarding the “Mission70” initiative

Dominic Williams, founder of the Dfinity Foundation, confirmed that a white paper will be published this January 14, detailing a technical proposal to reduce the issuance rate of new tokens by 70% during 2026

This deflationary measure seeks to strengthen asset scarcity and improve its long-term sustainability.


Technical Analysis and Fundamentals of the ICP Ecosystem

From a technical perspective, the Internet Computer price reveals a reversal pattern that has successfully erased losses accumulated over the past month

This chart momentum is bolstered by revealing on-chain data: the weekly burn rate reached 18,728 ICP, marking one of the highest figures for token removal from circulation since late 2024.

Despite the general sentiment of the crypto market remaining in a “fear” zone according to the Fear & Greed Index, ICP has managed to break away thanks to its positioning in the Artificial Intelligence (AI) and infrastructure sectors

It is worth noting that the Dfinity Foundation has been aggressively expanding its AI capabilities, highlighted by the launch of advanced applications like Caffeine at the end of 2025.

As the week draws to a close, analysts suggest closely monitoring the reception of the Mission70 proposal

If the market positively validates the reduction in token inflation, the Internet Computer price could consolidate its upward trend, challenging current resistances and distancing itself from the volatility experienced in late December

For now, the project’s market capitalization remains solid, above $2 billion.