Behind ICP's 40% rebound: Can DFINITY's 70% inflation reduction rewrite the fate of the coin price?

Internet Computer(ICP) has increased by over 39% in the past week, with a 24-hour surge of approximately 26%, ranking first among the top 100 market cap cryptocurrencies in single-day gains. This strong rebound is primarily driven by the latest MISSION70 white paper released by the DFINITY Foundation, which proposes a systematic tokenomics reform plan: reducing ICP inflation rate by at least 70% by the end of 2026.

Inflation Dilemma Finally Has a Solution

For a long time, the high inflation rate of ICP has been a core issue constraining its price. According to data from the white paper, ICP’s current annual minting rate is as high as 9.7%, mainly due to incentives paid to validators, node providers, and others. This means a large amount of new tokens enter the market each year, exerting continuous dilution pressure on long-term holders.

DFINITY’s MISSION70 adopts a “dual-track” strategy to achieve inflation reduction:

Market Has Already Priced in the Good News

On-chain data confirms market confidence in this reform. According to Nansen statistics, ICP’s exchange wallet balances have decreased by over 50% in the past 24 hours, typically interpreted as holders reducing their sell-off willingness. This indicates market participants are actively reducing liquidity supply, expecting prices to rise further.

Meanwhile, Chainspect data shows that Internet Computer’s daily transaction volume approaches 90 million, hitting a new high in over a month. This reflects that, under the expectation of tokenomics reform, actual network usage is also rebounding, not just price speculation.

From Incentive-Driven to Utility-Driven

Market analysis suggests that the deeper significance of this reform lies in a fundamental shift in ICP’s token economy logic. Previously, ICP mainly relied on high staking rewards to attract capital, which was incentive-driven. MISSION70 aims to shift ICP toward a utility-driven model by reducing incentives and increasing network usage, supporting the token price through genuine network demand.

Key Risks and Outlook

According to the latest news, the market will focus on two aspects: first, whether the MISSION70 reform can be implemented as planned; second, whether network demand growth can be sustained. These factors will determine whether ICP’s rebound is a temporary sentiment release or the beginning of a long-term value revaluation.

It’s worth noting that ICP is currently ranked 38th by market cap, with a price of about $4.50. If the reform proceeds smoothly and network activity continues to rise, ICP may still have room for extension. However, if the reform is poorly executed or network demand fails to follow, the rebound could face a correction.

Summary

The MISSION70 white paper represents ICP’s formal response to its tokenomics issues. Through a dual-track strategy of supply-side reduction and demand-side growth, ICP aims to fundamentally solve the long-standing problem of high inflation. The 40% market rebound is not baseless hype but an active pricing of this fundamental change. Whether this story can hold depends ultimately on the execution capability of the DFINITY team and whether new growth points like AI applications can truly drive increased network usage.