Token Burn and AI-Powered Tools Propel 5% Rally in ICP Price

ICP Gains 5% as Token Burn and AI-Driven Dev Tools Spark Institutional Interest

Internet Computer Protocol’s native token, ICP, rose 5% to $5.57 over the past 24 hours, fueled by deflationary mechanics and the rollout of innovative AI development tools.

According to CoinDesk data, ICP found strong support at $5.21 during a high-volume reversal at 19:00 UTC on July 30, where over 1.43 million tokens were traded—well above the 24-hour average of 476,829. The token maintained a steady upward trajectory, forming higher lows before hitting short-term resistance at $5.58.

The rally follows DFINITY’s launch of Internet Computer 2.0, a major protocol upgrade that introduces tools allowing developers to build Web3 apps using plain English prompts. By lowering the technical barrier to entry, the upgrade could significantly expand the developer base and adoption of the Internet Computer network.

Adding to the bullish momentum, DFINITY has burned over 1 million ICP tokens in just five months, reducing circulating supply and reinforcing long-term value alignment. The twin drivers of AI-enhanced accessibility and deflationary tokenomics are gaining attention among institutions seeking infrastructure-layer exposure in crypto.

Key Technical Insights:

• $5.21 established as strong intraday support.
• $5.58 remains a short-term ceiling for price continuation.
• Clear formation of ascending lows points to solid bullish structure.
• Institutional buying is suggested by a 3x volume spike during key recovery phases.
• Price has consolidated above $5.50, signaling strong buyer conviction.

With rising institutional interest and expanding utility, ICP appears well-positioned to continue its upward trajectory—particularly if broader market conditions remain supportive.