Internet Computer offers its users a way to create websites and apps as well as a variety of other web-based services through its digital cryptocurrency coin ICP.  It's designed with the capability to recreate much of the web using decentralised measures and operates on a decentralized network. In other words, through its decentralized system, Internet Computer can make different versions of the same apps that already exist on the internet. This could allow it to go head-to-head with some of the biggest names in online business.

Internet Computer can also be used for decentralized finance, or DeFi, copycating a variety of different financial processes. Because Internet Computer is decentralized, if there is greater demand for it, the ICP token can scale to meet that demand.

The Internet Computer rate has increased substantially since its release because there is huge potential for this cryptocurrency. Internet Computer enjoyed massive promotion in its early days, and the ICP price received a Boost from some analysts promising major Internet Computer price increases to come.

Internet Computer launched during a time when cryptocurrencies were going bullish, and it rode that wave of market enthusiasm to great success. It is still ranked number 25 among cryptocurrencies, even though the bullish trend for this digital asset market has died down. A lot of its current popularity stems from how it reduces the cost of computing processes, its high speed, scalability, and its ability to recreate apps and services offered by the juggernauts of online business, like Google and Amazon.

Internet Computer Breakdown

Internet Computer’s current circulating supply is 173,832,532.15 and its market cap is $7,437,359,726 (though that number is constantly changing). It currently controls 0.31% of the market with a market rank of number 25 out of thousands of cryptocurrencies. It's market ranking has gone down about 15 spots since ICP first launched, but that's still an incredible position for a new crypto-currency to hold and shows its longevity and usefulness.

The ICP rate was $462 (ICP/USD) when it first launched earlier in 2021, and it has gone down considerably since then, hanging close to the $50 level.The fact that it is higher than a couple dollars is really stellar for a new crypto-currency. It came out at a time when interest in the crypto-currency market was close to its all-time high, and even though the market crashed, ICP is still around.

The nonprofit foundation Dfinity offers developers and investors opportunities to start building their own apps or web services directly from the website using ICP tokens. They offer tools and funding opportunities as well to those who want to do more with ICP. The goal of the foundation is to use Internet Computer to rebuild and recreate the entire internet with blockchain. This would eliminate the need for conventional IT.

Internet Computer History

Internet Computer came out the door running, landing in the top 10 cryptocurrencies when it first launched. It comes from Dfinity and that nonprofit organization’s founder and chief scientist Dominic Williams. Dfinity was founded in 2016, and Internet Computer launched publicly in May of 2021.

Dfinity has a number of investors, including Polychain Capital, Aspect Ventures, Andreessen Horowitz, Eterna Capital, and Amino Capital. These early investors helped get Internet Computer off to a strong start. Those investors raised more than a hundred million dollars, creating evaluation for internet computer of $9.5 billion.

The new digital token did very well initially, hitting the market at $462, but days later it had plummeted to $278.11. By the middle of June, the ICP rate was around the $50 level, where it has stayed almost exclusively since then.

The Market Crash

The excitement at the start of ICP’s lifespan died down but has never been snuffed out, which is why it has managed to maintain its current level for so long. Internet Computer also came out not only when the market was high but also right before the market crash. There were a lot of new cryptocurrencies hitting the market at that time, and their presence diluted the market and helped to bring about the crash.

The market fell fast and severely in a short period of time, the bubble having burst on even the biggest cryptos (like Bitcoin).

Internet Computer Price Factors

What influences the price of the Internet Computer token? Let’s look at those pricing factors that can take the coin in a bullish or bearish direction and dictate where it might head in the future. Understanding those factors and then using the analysis tools available on FX Leaders can help investors to make smart predictions and decisions regarding their assets.

The Crypto Market

We've seen it happen already with Internet Computer- where the price of Bitcoin and other major cryptocurrencies affects Internet Computer’s price. Its position among the other cryptocurrencies means that ICP is somewhat beholden to the pricing and changes of major cryptos. If a crypto that is ranked #50 or #60 changes, that probably will not have much effect on ICP, but the first 10 or so cryptos and where their prices go can directly impact ICP.

Government Regulations

ICP is also directly affected by any changes the world governments make regarding cryptocurrencies. Regulations can limit where ICP can be bought or sold and how it can be used. Regulations may also limit how quickly transactions can be made and how easy those transactions are to process. As new cryptocurrency regulations are enacted, the Internet Computer rate will change in response.

The Economy

Another factor to watch for when trying to predict the ICP price is the health of the economy. In particular, the economy of major countries like the United States, United Kingdom, China, and India can have a direct impact on ICP’s rate. When the global economy is doing well, there will be more investors in cryptocurrencies, which will bring the ICP price up. When the economy is poor, however, investors bail and sell off their ICP and other cryptos, creating a bearish trend.

Trading Internet Computer

The huge drop in ICP price that happened in June of this year had nothing to do with the worth of Internet Computer. It was dictated entirely by the wider cryptocurrency market and the fact that a lot of investors simply exited the crypto market.

In other words, the Internet Computer rate drop does not mean that this crypto has become less useful and has less potential than it did before. In fact, it has the potential to move back up far above its current level and somewhere closer to where it started out at.

Because it is a cryptocurrency, however, Internet Computer is considered very volatile. As evidenced by the massive market crash earlier in the year, this crypto could plummet unexpectedly and dramatically regardless of its own merits.  That's why it is so important for potential investors to use cryptocurrency analysis tools like what we offer here at FX Leaders. Our live updates keep investors abreast of what's happening in the wider market, which is incredibly important for something like Internet Computer. Because it is a mid-tier cryptocurrency, its price is often dictated by the rates of other, higher-ranked cryptocurrencies.

Potential investors should be very careful about putting their money into any cryptocurrency, as they could easily lose that money in a short period of time.

Internet Computer can be traded on some of the major cryptocurrency exchanges, including Coinbase and Binance. Because it is not one of the top two cryptocurrencies, there will be limited platforms where Internet Computer can be exchanged. Trading ICP allows you to buy, transfer, or sell this currency, and all platforms that offer this crypto will allow you to store your current digital assets on-site in your account or off site in a crypto wallet.