Internet Computer Token (ICP), the governance token for the Dfinity foundation was listed on Coinbase Pro yesterday with a market cap of $45 billion, making it the 8th largest cryptocurrency by market cap on debut. The price of the token has registered wild price volatility ever since listing as it registered a new ATH of $737 before settling around the $350 mark. ICP token is currently trading at $334 with a market cap of $42 billion.
Our ICP-USD, ICP-BTC & ICP-USDT order books are now in full-trading mode. Limit, market and stop orders are all now available. https://t.co/J7BOXbmFC7. Read more about ICP here: https://t.co/pCJb7jejbM
— Coinbase Pro (@CoinbasePro) May 10, 2021
ICP token is a smart contract-based decentralized alternative for some of the most popular social media platforms such as Whatsapp and Tiktok. The founders of the project aim to make it the top internet software solution ecosystem. The aim is to create an Ethereum platform for developers on the internet with high scalability and a formidable smart contract ecosystem.
The reason for such price fluctuation is being attributed to the low liquid coins out of the already small market supply making the demand quite high yet fluctuating. According to Meesari’s analysis total value of ICP tokens currently in circulation is only about 26% of the total supply with no definitive schedule for supply.
ICP Token Highlights Shortcomings of Ranking by Market Cap
The controversy around ranking cryptocurrencies by market cap has been quite long, many analysts have pointed out the flaws in the metrics since it does not offer a level playing ground as not every crypto asset has the definitive market supply or same market cap. The same is true in the case of ICP whose liquidity is a mere one-fourth of the total market supply.
Another example is the rise of popular meme currency Dogecoin to become the fourth largest crypto asset. Comparing a digital asset (meme currency) with an infinite supply against the likes of finite supply tokens makes the rankings redundant.