The expansion of Internet Computer Protocol (ICP) has been remarkable due to the implementation of the Chain Fusion interoperability protocol.
According to the most recent update from Dfinity Foundation, the organization behind ICP, Chain Fusion experienced a phenomenal growth of 13 times in the past year.
“The Chain Fusion subnet observed an astounding 1,230% surge in activity over the previous 12 months, alongside an impressive 2,040% increase in message counts.”
Impact of the Growth on ICP Price
For those unfamiliar, Chain Fusion empowers developers to extend their application and system influence across various blockchains, notably the Bitcoin (BTC) and Ethereum (ETH) networks.
There are plans to integrate Solana (SOL) and broaden connectivity to the top three networks.
With the renewed focus on Bitcoin DeFi, Internet Computer and Chain Fusion have emerged as instrumental players in facilitating the vertical integration of applications due to their smart contract functionalities. But has this growth influenced the price of ICP tokens?
Reviewing the charts, it is evident that the ICP price mirrored the general market trend, surging in Q1 but encountering challenges in the latter half of 2024.
Over the past couple of months, the ICP price has consistently remained below the 50-day Exponential Moving Average (EMA), indicating short-term weakness and eventually dropping to support above $6.7 in the second half of 2024.
If the support level is strongly defended, there is a potential for the token to reverse its recent decline. In such a scenario, the primary bullish target would be the 50-day EMA, presenting a potential gain of 18% upon achievement.
Having said that, the current market sentiment towards ICP is neutral, implying that the price could move in either direction. The future trajectory may be determined by broader market movements following the US election.