Internet Computer (ICP) has suddenly returned to the spotlight after posting a strong rally over the past 48 hours. Following weeks of muted movement, ICP price surged more than 30%, climbing toward the $3.70 resistance zone as market participation spiked. This rally did not occur in a vacuum. The acceleration began precisely as new information surfaced regarding a sweeping overhaul of ICP’s tokenomics.
Insights from crypto analyst Dao King shed light on why the Internet Computer price is reacting so aggressively and why this move reflects more than a routine market rebound.
ICP Rally Supported by a Major Spike in Trading Volume
The upward momentum in ICP price has been validated by a dramatic increase in trading volume. Within a single day, volume jumped nearly 190%, reaching approximately $186 million. Such a surge indicates strong, widespread engagement rather than a price move driven by low liquidity.
According to Dao King, when rising prices are accompanied by expanding volume—especially during periods of protocol-level change—it often signals genuine investor conviction. During this rally, ICP also outperformed several broader crypto benchmarks, reinforcing the idea that the move is catalyst-driven rather than random volatility.
Mission 70 Proposal Sparks Market Repricing
At the heart of the ICP price pump is anticipation surrounding Mission 70, a newly proposed tokenomics framework revealed by the DFINITY Foundation on January 13, 2026. The proposal targets a reduction in ICP inflation by as much as 70% by the end of 2026, representing one of the most aggressive supply-side reforms seen in a Layer 1 network.
Dao King characterizes Mission 70 as a structural reboot, not a superficial adjustment. Current annual inflation of around 9.7% is projected to fall to roughly 5.4%, with further declines expected as token burn mechanisms intensify. Key measures include capped governance rewards, shorter neuron dissolve periods, and significant cuts—up to 49%—in node provider compensation. Together, these changes directly address long-standing concerns around token dilution.
ICP Burn Mechanics Add Demand-Side Momentum
Beyond supply reduction, Internet Computer is also strengthening its demand narrative through token burns tied to real network usage. ICP operates as an on-chain compute platform, where smart contracts and applications consume “cycles,” permanently burning ICP in the process.
With products like Caffeine.ai and upcoming decentralized cloud and AI engines gaining traction, usage-driven burns are expected to accelerate. Dao King points out that this model creates organic demand pressure—something many Layer 1 chains struggle to achieve. Increased activity leads to higher burn rates, reinforcing scarcity as adoption grows.
Ecosystem Growth Reinforces ICP Price Strength
Recent on-chain metrics further validate the bullish case. Weekly ICP burns recently climbed to 18,728 ICP, marking one of the highest levels recorded since September 2024. This increase reflects genuine network utilization rather than short-term speculative trading.
Investor sentiment around Internet Computer is also improving due to its positioning in decentralized cloud infrastructure and AI-focused workloads. Even amid a relatively neutral broader market, ICP price has responded swiftly to signs of long-term structural improvement.
Final Thoughts
The recent ICP price surge demonstrates how quickly markets can reprice an asset when supply dynamics improve while real usage expands simultaneously. While the sustainability of the rally will depend on execution and continued ecosystem growth, the reaction to Mission 70 highlights why Internet Computer has firmly re-entered trader and investor discussions.
For now, ICP’s momentum underscores the impact that meaningful tokenomics reform—paired with real demand—can have on price action.
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