What Is Driving Internet Computer (ICP)’s Nearly 40% Rebound?
Internet Computer (ICP) surged greater than 39% over the previous week, outpacing main cryptocurrencies as traders responded to the newly launched MISSION70 whitepaper.
The paper proposes complete updates to cut back inflation by not less than 70% by the tip of 2026. This is to be achieved by way of a mixture of demand-side acceleration and supply-side reductions
Internet Computer Tops Daily Gainers
ICP has emerged as a standout performer within the crypto market. Data from CoinGecko exhibits ICP posting beneficial properties of almost 26% previously 24 hours, putting the token on the high of the every day leaderboard among the many high 100 cryptocurrencies.
The rally varieties a part of a broader upward momentum that started earlier this week. The altcoin entered 2026 largely in line with the broader crypto market, experiencing a modest preliminary rise earlier than a brief pullback.
However, momentum reversed once more this week. Major belongings such as Bitcoin (BTC) and Ethereum (ETH) resumed their upward strikes, restoring broader market optimism.
While this optimistic sentiment supported ICP’s worth motion, developments throughout the Internet Computer ecosystem may also be contributing to the rally, reinforcing investor confidence within the community’s native fundamentals.
“Internet Computer has led giant cap belongings over the previous week by growing its market cap by +39%,” Santiment wrote.
Mission 70 Whitepaper Outlines Dual Strategy to Reduce ICP Token Inflation
The DFINITY Team revealed the MISSION70 whitepaper on January 13, 2026. It particulars a twin strategy to reducing ICP’s inflation fee. The technique blends supply-side and demand-side actions, aiming for a 70% discount in total token inflation by year-end.
Supply-side reforms will present 44% of the entire discount. These modifications embrace reducing voting rewards, node supplier rewards, capping reward swimming pools, and introducing an easier maturity modulation mechanism.
The whitepaper argues that present node supplier rewards considerably exceed underlying infrastructure prices, creating room for reductions with out compromising community safety.
“We estimate that the supply-side measures cut back ICP minting from 9.72% (January 2026) to five.42% (January 2027), a 44% discount. DFINITY believes that the Mission 70 goal of a 70% inflation discount might be exceeded by way of a mixture of those supply-side measures and demand acceleration,” the paper reads.
For the remaining 26%, elevated community exercise is crucial. DFINITY intends to spice up demand with AI-powered on-chain functions and new cloud engine merchandise.
The paper initiatives that higher usage will burn more ICP by way of computational charges, which may create deflationary stress.
“To obtain the general Mission 70 goal of a 70% inflation discount (from 9.72% to 2.92%), a further demand influence of 26% is required past the 44% discount from supply-side measures. At present worth ranges, this requires growing the cycle burn fee from the present 0.05 XDR per second to 0.77 XDR per second,” the workforce added.
Market Response and On-Chain Data Show Strong Confidence
Meanwhile, ICP’s worth acquire was matched by notable on-chain exercise. Data from Nansen exhibits that ICP trade balances declined by greater than 58% over the previous 24 hours.
Such sharp outflows sometimes point out that holders are transferring tokens off exchanges, a pattern generally related to diminished short-term promoting stress.
Network use can also be rising. According to Chainspect, the Internet Computer processed roughly 90 million transactions in at some point, marking the community’s highest every day exercise in over a month.
From a technical perspective, analysts stay constructive on ICP’s outlook. Some level to similarities with its November 2025 worth construction, suggesting that, if momentum holds, the asset may try a comparable upward transfer.
As the Internet Computer enters this vital interval, the cryptocurrency market will watch to see whether or not DFINITY can ship this financial overhaul. The coming time will present if the value rally alerts lasting change or is a response to anticipated developments.
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