Ethereum(ETH) and Internet Computer(ICP) Record Double-Digit Gains

Divya  |  Jun 29, 2021

As the crypto market continued to stumble towards recovery on Monday, two currencies found favor with investors and made solid double-digit gains. Both Ethereum (ETH) and Dfinity’s Internet Computer (ICP) surged by 10% and 15% respectively while other tokens grew by far less.

Ethereum Surges Past $2,000 While ICP Receives Boost From Goldman Sachs

According to data, ETH reached $2,015 as its value increased by 10.5%. This is the first time since Thursday when the second-largest crypto touched the $2,000 mark.

Meanwhile, ICP, a utility token created by Dfinity, gained 15% in value following its mention in Goldman Sachs’ latest cryptocurrency report. The currency’s trading volume has also more than doubled.

In its overview of digital currencies, Goldman Sachs called Dfinity “innovative,” and indicated that it “could pave the way to the future.” However, the investment bank noted it needed more testing and time and a way to deal with its complexity.

ICP is currently changing hands at $42, which is far below its all-time high of $737 recorded in May when it was launched.

ICP Signals a Comeback After Declining 95% Since Launch

The ICP/USD exchange caught investor attention as it closed the day at $42.98 after dropping slightly below its intraday high of $45.01. At one point during the quarter, the pair was trading at $28.31.

ICP’s rebound follows a steep fall that wiped away 95% of its value since its launch on major exchanges like Coinbase and Binance.  The currency’s latest price retracement has returned nearly 68.27% in paper profits.

Community Alleges Dfinity Tanked ICP

Some members of Dfinity’s Reddit forum allege that the Zurich-based non-profit dumped ICP tokens worth $6 billion as soon as they were tradeable on the market. A pseudonymous community member, @trapsandwich, who claims to be an early backer, explained the allegation in a detailed post published over a month ago.

The post, which was later removed by Dfinity’s moderators, highlighted that the wallets connected to the Internet Computer team had continuously transferred their tokens to exchanges.

In another post, @trapsandwich claimed that Dfinity had locked the ICP tokens held by early investors for an additional month after the listing. However, the firm placed no such restrictions on its own holdings that stood at 111 million ICP tokens.

Similar allegations were made by another Redditor @Beneficial-Source147, who claimed that Dfinity had dumped almost 90 million ICP tokens since genesis. But several community members rejected this claim and stated that most ICP transfers were made to developers, instead of being diverted to sales.

Altogether, the accusations suggested that Dfinity had prevented its investors from accessing ICP markets. The token has seen the most drastic price correction among all its peers during the overall downward trend. It had debuted on several exchanges at the same time, albeit at different prices. For instance, ICP was priced at $3,161 at Binance on the first day of trading, whereas Coinbase listed it for $630.

The Next Steps for Internet Computer Token

ICP is yet another candidate trying to win in the blockchain scalability space. But the biggest difference between the project and its rivals is that, instead of relying on miners and validators, Dfinity wants to establish large-scale data centers and node machines to fuel its project.

During its launch, ICP received considerable support from high-profile investors such as Andreessen Horowitz's venture fund a16z and crypto-focused hedge fund Polychain Capital. But overvaluation and excessive liquidity may have hurt its chances. Nevertheless, the token is still in strong demand, and with Goldman Sachs’ boost, it might see a revival in its value.

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