ICP Coin’s Bright Outlook: 20x Possible in Bull Run!
Node | Product | TPS | Web3 | Growth | Supply | Network
In the crypto market, ICP Coin is lying in a corner without any brotherhood. When this coin first came up in the market, everyone was surprised to see its price. Everyone was curious about it after seeing the $2800 price tag. However, this coin is currently selling for $6, and many people have labeled it as a “dead coin.”
To figure out whether or not this coin is still alive, I started investigating, and ultimately, after gathering all of the information, I decided to share it with you through this article.
Our Questions?
- What is the ICP blockchain?
- What’s new in the ICP?
- What kind of innovation are they doing?
- How does it operate?
- What is the state of the ecosystem and growth?
DFINITY
ICP is a project of The DFINITY Foundation. The layout of this project is slightly different since they made certain compromises in the decentralized part. Because of the blockchain trilemma (Security, Scalability, Decentralization). the problem has yet to be solved, ICP has made some compromises.
At first look, ICP is similar to Solana, Sui, and Aptos.
Complex
The architecture of ICP’s project is so complicated that ordinary people would struggle to understand it. I’m trying my best to explain everything to you in terms you can understand, as much as I’ve been able to.
Blockchain
Their architecture’s top layer is NNS. NNS stands for Network Nervous System, and layers may be discovered inside this NNS. These layers have subnets with blockchain-like architecture. This subnet is blockchain independent, with nodes running in the data center.
All the nodes inside the internal computer are running on the Data Center. Their first participant is the Data Center, which stores all copies of the blockchain’s Node.
There are different types of subnets. If a smart contract is to be executed, the type of a subnet must be chosen. You can run a smart contract by selecting one of the subnets among the available ones.
Node — TPS
Thousands of smart contracts can be executed on a subnet, such as there are 10000, 20000, or 80000 smart contracts in 1 subnet. The subnet with the highest load has the lowest TPS.
I found a subnet that had more than 80000 active smart contracts, however, its TPS was just 38. It is the data center’s responsibility to keep all of these nodes running.
A complicated layout was developed in order to create a fast and scalable blockchain network. Because data centers operate their nodes, there is more centralized control, such as transaction validation and block creation. This means that certain data centers have control over it.
FUD was spread when the ICP coin was released into the market because it was the topic of centralization.
Centralization or decentralization is not currently being discussed. There are some use cases where transaction speed is more important, and centralization makes no difference.
They have 2 Main Usage:
- Gaming
- Social Media
Every gaming project focuses on the performance of their game, they do not care about what type of control system they use either centralized or decentralized. If they get performance, they will switch to blockchain; if they do not get performance, they will never move to blockchain.
Similarly, if there is no alternative to communication in social media applications, in such a case there is no use in making anything in the blockchain.
The more decentralized the blockchain is now, the slower it is. This problem will be resolved in time, however, for the time being, it remains as it is. Furthermore, the transaction cost in Ethereum is high.
In this situation, the ICP project is preferable for specific use cases.
Tokonomics
The Tokonomics of ICP are also made in a slightly complex way.
It has a total supply of 498.35 million and a circulating supply of 435 million. As we can see, about 90% of the supply has been unloaded on the market.
ICP Token is Used in 3 Places…
1. Developer Side
Cycles is a stablecoin that must be used by developers in order to set up and execute smart contracts in a subnet. This Cycles can only be purchased using ICP tokens. After burning ICP tokens, cycles are available.
In certain ways, Cycles are included in the development fee.
2. Trade
You may use ICP to purchase NFTs, participate in Defi, and their tokens are also used to run the network.
3. Neurons
Neurons is a governance token. You can lock ICP for neurons. To participate in NNS’s DAO, ICP tokens must be locked for a period of 8 months to 5 years. The longer the ICP is locked, the more rewards you will receive.
Network Management
ICP tokens are getting locked inside NNS, due to which rewards are being distributed and these rewards are coming from new supply. This new supply unloading is creating an inflationary token.
Voting rewards will unlock 10% of the supply every year and gradually it will be reduced to 5%.
Node operators also get rewards from the new 10% supply.
For the future of ICP, the more developers make canisters using their Subnet, the sooner the circulation of ICP tokens will decrease because tokens burn in it. This will create an environment like Ethereum but only if the token inflation will be under control.
It is impossible to achieve token deflation unless developers focus heavily on ICP. This is a problem for the investment value.
Performance
You can see the performance of ICP by going to Explorer.
It has a Transaction Throughput of 5016.9 tps which is the highest. Don’t be shocked by seeing this tps number because here every subnet has a different TPS. TPS depends on how many smart contracts are hosted in the subnet.
There are 81668 canisters on 1 subnet, in which the transaction speed is only 31.23 TX/s.
There are 9026 canisters on the second subnet, in which the transaction speed is only Transactions 284.00 TX/s.
This shows that not everything is on the ICP’s blockchain. Icp is the fundamental pillar under which sharding has been accomplished via the subnet. Small blockchain networks have been formed within ICP’s structures, and their work is being done via a smart contract hoster. The TPS of all these smart contract hosters is different.
Data Center
Most of the node operators of ICP are from USA and Switzerland. The USA has 430 node operators with 19 data centers and Switzerland has 171 node operators with 8 data centers.
Overall
- Data Centers — 44
- Node Providers — 82
- Subnets — 36
- Active Nodes — 549
Ecosystem
There is a total of 112 projects on ICP, out of which 22 are SocialFi and 23 are NFTs projects. Apart from this, the rest of the projects are Games and Wallets.
- DSCVR — Web3 social media platform
- Distrikt — Web3 social media platform
- Kinic — Web3 search engine
- OpenChat — Messaging Service
- Cubetopia — Web3 Game
- Dmail — Web3 e-mail Service
On ICp, several Unique projects have been developed. ICP’s ecosystem project tokens have not yet been released. Keep an eye on their tokens in the future; you may get an airdrop.
Price Prediction
The market cap of ICP is around 2.5 billion. Growth up to 20x in terms of market cap is possible in a bull market.
Currently, the ICP price is trading inside a parallel downline. A break of this pattern could see a major rally towards $10. After this, if the market performs well then the level of $22 can also be seen to be achieved. To hold for a long time, you can think of accumulating the ICP in this range.
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Disclaimer
This is not Financial Advice. This article is meant only for educational purposes. I am just sharing my thoughts and analysis based on my many years of experience.
