ICP Rebounds 3.5% After Caffeine Launch

ICP, the native token of the Internet Computer blockchain, experienced a volatile trading session, initially sliding by 3.5% over the past 24 hours. However, the token managed to cut its losses and stage a rebound, closing at $5.4324 after hitting a low of $5.27. The turnaround was driven by the official launch of Caffeine, an AI-powered Web3 platform built on the Internet Computer Protocol (ICP).

The launch event, titled "Hello, Self-Writing Internet," took place in San Francisco on July 15, 2025. Caffeine is designed to empower users to build decentralized applications (dApps) using natural language, eliminating the need for coding skills. This innovation marks a significant step in the Internet Computer's strategy to integrate on-chain AI with seamless dApp creation, thereby attracting renewed investor interest and igniting buying momentum late in the day.

Throughout the day, ICP faced selling pressure, with bears pushing the price from $5.39 to $5.20 during the overnight session. However, the landscape shifted after 14:30 UTC on Tuesday, as ICP dropped to $5.27 but then reversed higher on a series of institutional-sized volume spikes. This activity lifted the token back to $5.34, narrowing the day’s losses and reinforcing buyer presence around the $5.27-$5.28 support band.

Fundamental progress further bolstered sentiment. The DFINITY Foundation has burned over 1 million tokens to tighten supply, while its new vetKeys privacy protocol addresses critical concerns in blockchain data security. These developments, coupled with the launch of Caffeine, have positioned ICP to test resistance at $5.40 once again, backed by ecosystem momentum and strategic upgrades.