ICP defies market slump as on-chain activity and AI innovations fuel momentum

While much of the crypto market remains in the red, Internet Computer (ICP) has surged more than 60% this week, supported by rising on-chain activity, improving token metrics and a growing wave of investor confidence.

According to data shared by Cookie DAO’s research division, ICP has become the most active blockchain globally, processing around 1,104 transactions per second — ahead of Solana — and surpassing 262 billion total transactions. The increase in activity suggests expanding usage of decentralised applications (dApps) built on the network.

One factor driving this renewed optimism is ICP’s improved token structure. All venture capital token unlocks have been completed, reducing the likelihood of large sell-offs. Around half of the total supply is currently staked, while the volume of ICP held on exchanges is at an all-time low — a trend seen by analysts as a sign of long-term holder confidence.

The sentiment on social platforms has also turned sharply bullish. Influential figures such as CryptoWizardd, BlockchainPill, Angelodotsui and RushiCrypto have all drawn attention to ICP’s growth, arguing that the project remains undervalued compared to its underlying fundamentals. Cookie DAO’s Smart Feed data indicates a 1,400-point jump in sentiment over the past week.

A key catalyst adding to the buzz is the upcoming launch of Caffeine AI, an artificial intelligence-powered platform that lets users create and deploy full-stack applications on ICP using natural language. The tool aims to make app development accessible to anyone, regardless of coding experience, potentially expanding the network’s reach to new audiences and use cases.

For many observers, the combination of strong fundamentals, active development and innovative tools such as Caffeine AI has positioned ICP as one of the few tokens gaining traction amid wider market weakness.