Internet Computer Protocol is a unique project, that allows investors to accurately assess fundamentals. 2024 has been an amazing year for the project:
These metrics are impressive, but despite the heavy-hitting results booked to date, ICP is still ranked 39th with a market cap of (just) US$4.1B in the CoinGecko list of crypto projects, well below projects with no or little utility. This has led to some insiders referring to ICP as 'crypto's most undervalued project'.
This month (January 2025), ICP will achieve 'positive cashflow', defined here as the point at which revenue from compute (ICP burned) exceeds the cost of the network (ICP minted to reward node providers). Refer to my post on Nuance for more detail (nuance.xyz/fractaleer/12095-434go-diaaa-aaaaf-qakwq-cai/icp-tokenomics-part-i).
Apart from this critical milestone, the tokenomics of ICP are such that effective deflation is affected by the value of the ICP token. I built a model described in another Nuance post (nuance.xyz/fractaleer/12200-434go-diaaa-aaaaf-qakwq-cai/icp-tokenomics-part-ii) that estimates deflation (defined as a decrease in the ICP circulating supply) to be achieved in 2028, but at the current depressed ICP price below US$10, effective deflation will be achieved before this Christmas!!
In the context of the above, I expect ICP to increase significantly in value this year and given the chart provided here, my expectation is that the price of ICP will flip on a dime this week with the news of ICP achieving positive cashflow ('operational profit'). My view is that 10x is achievable in 2025.
I do not provide financial advice. The above expresses my personal view and may be way off the mark. Please do your own research but feel free to comment.
- ICP has been recognised as being the fastest blockchain in terms of max recorded transactions per second, outperforming Solana by more than 3 times (Cryptogics November 2024).
- In terms of compute, ICP is frequently burning more than 1 trillion 'cycles' per second, approximately 200x the 5B cycles/s it routinely burned a year ago.
- It is also reported to be the cheapest for transactions and data storage, by one or more orders of magnitude, depending on the blockchain it is compared with (Token Terminal December 2024). More than 4Tb of data is stored on ICP, more than 3.3x the data stored on Ethereum and potentially more data than is held on-chain by all other crypto projects combined.
- ICP is attracting developers at breakneck speed (3rd preferred blockchain for new developers), with fees collected up 40x year-on-year (Token Terminal December 2024).
These metrics are impressive, but despite the heavy-hitting results booked to date, ICP is still ranked 39th with a market cap of (just) US$4.1B in the CoinGecko list of crypto projects, well below projects with no or little utility. This has led to some insiders referring to ICP as 'crypto's most undervalued project'.
This month (January 2025), ICP will achieve 'positive cashflow', defined here as the point at which revenue from compute (ICP burned) exceeds the cost of the network (ICP minted to reward node providers). Refer to my post on Nuance for more detail (nuance.xyz/fractaleer/12095-434go-diaaa-aaaaf-qakwq-cai/icp-tokenomics-part-i).
Apart from this critical milestone, the tokenomics of ICP are such that effective deflation is affected by the value of the ICP token. I built a model described in another Nuance post (nuance.xyz/fractaleer/12200-434go-diaaa-aaaaf-qakwq-cai/icp-tokenomics-part-ii) that estimates deflation (defined as a decrease in the ICP circulating supply) to be achieved in 2028, but at the current depressed ICP price below US$10, effective deflation will be achieved before this Christmas!!
In the context of the above, I expect ICP to increase significantly in value this year and given the chart provided here, my expectation is that the price of ICP will flip on a dime this week with the news of ICP achieving positive cashflow ('operational profit'). My view is that 10x is achievable in 2025.
I do not provide financial advice. The above expresses my personal view and may be way off the mark. Please do your own research but feel free to comment.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.