Internet Computer (ICP) Gains 5% on Token Reduction and AI-Focused Ecosystem Growth

ICP Rallies 5% as DFINITY Burns 1M Tokens, Launches AI-Based App Tools

Internet Computer Protocol’s (ICP) native token rose 5% to $5.57 over the past 24 hours, driven by a combination of strong technical momentum and meaningful ecosystem developments.

The token traded within a narrow $0.36 range and found robust buying support near $5.21 around 19:00 UTC on July 30. During that hour, trading volume surged to 1.43 million ICP—nearly triple the 24-hour average of 476,829—according to CoinDesk’s data model.

Bullish sentiment persisted as the price formed successive higher lows, carving out a rising channel before encountering resistance near the $5.58 mark.

Fueling the rally was the debut of Internet Computer 2.0, a major upgrade by DFINITY that introduces tools enabling users to build decentralized applications using natural language commands. This user-friendly innovation aims to lower the technical barrier for Web3 development, potentially attracting a wider base of creators and developers.

Adding to the bullish case, DFINITY has burned over 1 million ICP tokens in the past five months, a deflationary move that reduces circulating supply and signals a long-term commitment to value creation. These dual themes—AI-enabled utility and token deflation—appear to be resonating with institutions increasingly interested in infrastructure-layer digital assets.

Technical Highlights:

Key Support: $5.21 established as a major support level, with 1.53 million tokens exchanged during the recovery surge.
Resistance: Price capped around $5.58, forming a near-term ceiling.
Bullish Pattern: Rising lows from $5.21 to $5.50 suggest sustained buying interest and upward bias.
Volume Spike: Institutional accumulation evidenced by volume well above average levels.
Consolidation: A modest 0.18% gain from $5.56 to $5.57 during 09:05–10:04 UTC confirms healthy consolidation at higher price levels.

ICP’s recent rally underscores how technical strength and compelling fundamentals—particularly AI integration and supply reduction—can combine to drive market interest.