What Is Driving Internet Computer (ICP)'s Nearly 40% Rebound?

Source: CryptoNewsNet Original Title: What Is Driving Internet Computer (ICP)’s Nearly 40% Rebound? Original Link:

Internet Computer Surges Over 39% Amid MISSION70 Whitepaper Release

Internet Computer (ICP) has surged more than 39% over the past week, outpacing major cryptocurrencies as investors responded to the newly released MISSION70 whitepaper. The paper proposes comprehensive updates to reduce inflation by at least 70% by the end of 2026 through a combination of demand-side acceleration and supply-side reductions.

ICP Emerges as Top Daily Performer

ICP has emerged as a standout performer in the crypto market. Data from CoinGecko shows ICP posting gains of nearly 26% in the past 24 hours, placing the token at the top of the daily leaderboard among the top 100 cryptocurrencies.

The rally forms part of a broader upward momentum that began earlier this week. Major assets such as Bitcoin (BTC) and Ethereum (ETH) have resumed their upward moves, restoring broader market optimism. While this positive sentiment has supported ICP’s price action, developments within the Internet Computer ecosystem may also be contributing to the rally.

MISSION70 Whitepaper Details Dual Strategy

The DFINITY Team published the MISSION70 whitepaper on January 13, 2026. It details a dual approach to lowering ICP’s inflation rate, aiming for a 70% reduction in overall token inflation by year-end.

Supply-side reforms will provide 44% of the total reduction. These changes include lowering voting rewards, node provider rewards, capping reward pools, and introducing a simpler maturity modulation mechanism. The whitepaper argues that current node provider rewards significantly exceed underlying infrastructure costs, creating room for reductions without compromising network security.

According to the paper: “We estimate that the supply-side measures reduce ICP minting from 9.72% (January 2026) to 5.42% (January 2027), a 44% reduction. DFINITY believes that the Mission 70 target of a 70% inflation reduction will be exceeded through a combination of these supply-side measures and demand acceleration.”

For the remaining 26%, increased network activity is essential. DFINITY intends to boost demand with AI-powered on-chain applications and new cloud engine products. The paper projects that greater usage will burn more ICP through computational fees, which could create deflationary pressure.

To achieve the overall Mission 70 target, the team noted: “An additional demand impact of 26% is required beyond the 44% reduction from supply-side measures. At current price levels, this requires increasing the cycle burn rate from the current 0.05 XDR per second to 0.77 XDR per second.”

Strong On-Chain Signals Support Rally

ICP’s price gain was matched by notable on-chain activity. Data from Nansen shows that ICP exchange balances declined by more than 58% over the past 24 hours, indicating that holders are moving tokens off exchanges—a trend commonly associated with reduced short-term selling pressure.

Network use is also rising. According to Chainspect, the Internet Computer processed approximately 90 million transactions in one day, marking the network’s highest daily activity in over a month.

Technical Outlook Remains Constructive

From a technical perspective, analysts remain constructive on ICP’s outlook. Some point to similarities with its November 2025 price structure, suggesting that if momentum holds, the asset could attempt a comparable upward move.

As the Internet Computer enters this critical period, the cryptocurrency market will watch to see whether DFINITY can deliver this economic overhaul. The coming months will show if the price rally signals lasting change or is a reaction to anticipated developments.