The Internet Computer Protocol [ICP] has experienced significant growth in its network, driven by the Chain Fusion interoperability protocol.
As per the most recent report from Dfinity Foundation, the company behind ICP, Chain Fusion has witnessed a remarkable 13-fold increase in activity over the last year.
“The Chain Fusion subnet recorded an astonishing 1,230% surge in activity in the past 12 months, along with an impressive 2,040% surge in message counts.”
Impact on ICP Price Movement
Chain Fusion, which offers seamless integration with other blockchain networks like Bitcoin [BTC] and Ethereum [ETH], has opened doors for developers to expand their applications and systems.
Moreover, there are plans to integrate Solana [SOL] to further enhance connectivity across the top three networks.
With the resurgence of interest in Bitcoin DeFi, Internet Computer and its Chain Fusion protocol have emerged as significant facilitators of cross-network application integration, courtesy of their smart contract functionalities. But how has this growth influenced the price of the ICP token?
Analyzing the price trends, it is evident that the ICP token followed the market surge in Q1 but encountered challenges in the latter part of 2024.
Recent observations indicate that the ICP price has consistently remained below the 50-day Exponential Moving Average [EMA], signifying short-term weakening, leading to a gradual decline towards the support level above $6.7 by the second half of 2024.
If the current support level holds, there is a possibility of a reversal of the recent downtrend. In such a scenario, the primary bullish target would be the 50-day EMA, offering an 18% potential gain upon attainment.
Nevertheless, the prevailing market sentiment towards ICP remains neutral at present, hinting at a possible price movement in either direction. The market’s future course may become clearer post the US election, potentially defining the next move for the ICP token.