Understanding $ICP ICP’s Price Challenges

Many investors wonder why Internet Computer (ICP) often lags behind other cryptocurrencies during market rallies. A key factor is its highly inflationary token model. New ICP tokens are continuously minted, yet the project does not implement significant token-burning mechanisms to offset this supply growth.

With an effectively unlimited total supply, large volumes of ICP may be sold into the market regularly to maintain operations and incentivize network participants. This persistent selling pressure can make it difficult for prices to rise, even when broader crypto markets are bullish.

While some critics view this model as unfavorable for price appreciation, it reflects the project’s current economic design rather than a deliberate attempt to “scam” investors. Potential buyers should carefully evaluate tokenomics, supply dynamics, and long-term utility before investing.