Date: Wed, Sept 11, 2024, 05:56 AM GMT
The Internet Computer (ICP) is currently experiencing a notable surge in the cryptocurrency market, with its price increasing by 10.16% in the last 24 hours. As of now, $ICP is trading at $8.58, pushing its market capitalization to $4.0 billion.
This recent price spike can be attributed to the high burn rate of cycles on the Internet Computer network. In the Internet Computer ecosystem, cycles are essential for powering computations and managing memory. These cycles are created by burning ICP tokens, and as computations are performed on the network, the cycles are continuously burned.
Source: :dashboard.internetcomputer.org
Currently, the burn rate stands at an impressive 1,534,992,708,264 cycles per second. This elevated burn rate reflects a high level of activity and computation on the network, signaling robust growth and health within the ecosystem.
Over the past 90 days, the average burn rate has been 32,940,736,350 cycles per second, underscoring the consistent demand for the network’s services. The increased activity has a deflationary effect on the supply of ICP tokens, as more tokens are burned to generate cycles. This reduction in token supply is one of the key factors behind the recent increase in ICP’s value.
In the past 24 hours alone, the total number of burned ICP tokens has spiked, jumping from 193,989 to 206,850. As the supply of ICP tokens decreases due to this burn, the value of the remaining tokens can rise, contributing to the current surge in price.
Source: Internet Computer
This high burn rate and the resulting deflationary pressure are key factors behind ICP's recent surge. As the Internet Computer continues to expand and support more computations, further burning of cycles is expected, potentially leading to additional increases in the value of ICP.
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Disclaimer:
The information provided in this article is for informational purposes only and should not be considered financial or investment advice.
