ICP Surges 5% on Token Burn and AI Development Tools Launch

ICP, the native token of the Internet Computer Protocol, surged 5% over the last 24 hours to trade at $5.57, driven by a combination of strategic token burn activity and the introduction of AI-powered development tools. The token displayed strong technical structure, with price consolidation within a $0.36 trading range and notable support identified near $5.21 on July 30 at 19:00 UTC. During that period, trading volume spiked to 1.43 million tokens—more than three times the 24-hour average of 476,829 units [1].

The upward momentum continued as the price moved through a series of higher lows, forming a bullish channel. Resistance emerged around $5.58, where further gains were temporarily capped. This pattern suggests growing market confidence and the potential for a breakout if the resistance level is successfully tested and breached [1].

DFINITY’s recent launch of Internet Computer 2.0 marked a pivotal development for the project. The upgrade introduced no-code, AI-powered tools that allow users to build applications using natural language prompts, significantly reducing the technical barriers to Web3 development. This innovation is expected to attract a broader user base and enhance the platform’s utility, differentiating ICP in a crowded layer-1 blockchain market [1].

In parallel, DFINITY has executed a token burn initiative, destroying over 1 million ICP tokens in just five months. The move, aimed at reducing supply, signals a long-term commitment to value optimization and aligns with growing institutional interest in infrastructure-oriented crypto assets [1]. The dual narrative of token deflation and AI-driven utility appears to be resonating with investors, particularly as accumulation activity intensified, supported by above-average trading volumes.

Technical indicators further underscore the strength of the rally. The price saw a 0.18% increase between $5.56 and $5.57 during the 09:05–10:04 UTC window, validating consolidation at elevated levels amid rising demand [1]. Institutional activity has been a key driver, with volume spikes indicating accumulation by large participants.

As the market absorbs the implications of Internet Computer 2.0 and ongoing token burn efforts, ICP’s trajectory reflects a strategic balance between utility expansion and supply-side management. These developments position the asset as a compelling candidate for investors seeking exposure to blockchain infrastructure innovation.

Source: [1] ICP Rises 5% as Token Burn, AI-Powered Development... (https://finance.yahoo.com/news/icp-rises-5-token-burn-120908306.html)