Internet Computer (ICP) Buying Opportunity Coming?
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Internet Computer (ICP) became notorious for trading at peak valuations, making it to the top 5 coins based on market capitalization. The asset peaked above $580, then went on to unravel and continually drop its price.
ICP now hovers around $37, with predictions that the breakdown below $50 means the coin will continue to slide, while potentially opening buying opportunities.
ICP remains a new and risky asset, which is still in a stage of price discovery. But it remains a project promising to build significant blockchain infrastructure, and may regain interest at a lower price range.
Can ICP Recover Fast
ICP took years to start trading, and the project still has significant stashes of coins locked to avoid dumping. Still, even the limited exchange launch led to a loss of more than 90% over the course of a few weeks.
ICP now reappears as a new type of lower-priced asset, with the potential to allow accumulation. Most of the ICO buyers are still in the money based on early adoption prices. Early buyers acquired ICP at $0.03. But ICP is also calling for long-term accumulation.
However, digital assets remain unpredictable and ICP has seen outsized activity in Binance trading pairs. In the past day, a trading anomaly was noted against the dollar-pegged BUSD asset.
ICP thus has the potential for short-term trades, or even a hike to a higher valuation in the short term.
ICP Keeps Breeding Skepticism
The rapid slide of ICP prices, along with the brief stint among top large cap coins continued to create doubts about the project’s real value. ICP keeps breeding skepticism, despite its almost instant trading on Binance exchange, as well as a Coinbase listing.
Some traders went as far as to call ICP a scam, while having too ambitious claims of displacing Ethereum with a new decentralized protocol.
The Internet Computer, or Dfinity ecosystem, still claims it is operational and adding distributed apps and decentralized gaming and financial opportunities. But the current ecosystem is still relatively small, and there is no way to distinguish organic ICP adoption.
Can ICP Become a Good Investment
The skepticism surrounding ICP means new buyers may only be interested in the asset at rock-bottom prices. Hot new projects have lost their appeal, especially after the recent altcoin slide.
ICP may present a buying opportunity with the potential for future expansion, but the overall sentiment is that the price may continue dipping, potentially breaking close to $10 or lower. Short-term pumps, however, are still possible, as ICP volume is highly dependent on a couple of active trading pairs.
The biggest advantage of ICP are the extensive centralized exchange listings, which mean the asset may be available easily when its price becomes appealing. But in the case of overall market weakness and signs of a bear market, ICP still has no indications of factors to stem its price slide.
ICP Lags in Wallet Adoption
ICP also presents wallet risk, and the chief tool for access remain exchange-based wallets on Binance and Coinbase. While those options are relatively secure, ICP is not as easily held as other digital coins and tokens.
The two biggest hardware wallets, Trezor and Ledger, still do not support the asset. Exodus, the multi-asset wallet, has indicated it will also stay away from ICP for now.
The other possible tool is the DFinity wallet, the native app to the project, which requires a new registration and the creation of a so-called Internet Identity and a user name.
Will Grayscale Add ICP
Recently, the Grayscale fund announced it is exploring a new batch of assets to add to its funds. ICP is one of those assets, with no guarantee of actually building a fund based on the token.
Currently, even the Grayscale GBTC fund trades at a discount to spot prices, signalling lower enthusiasm for digital assets.
What is the Utility of ICP
Beyond market speculation, the actual ICP token can be used to purchase bandwidth on the distributed computing network of the Internet Computer. The ICP can be converted into “cycles”, and then go toward computational costs.
ICP also has governance functions, and has some forms of staking for future network decisions.
The biggest advantage for the Internet Computer project is that it has a dedicated support team to build and maintain a network of data centers. The value of the project lies in having teams operate dedicated node machines in independent data centers. The ICP protocol then unites that hardware into a virtual machine, accessible worldwide, and capable of decentralized computation.
The Internet Computer has the advantage of moving away from the biggest data centers and cloud solution owners, thus adding to the potential independence of blockchain technology.
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