Internet Computer: Dino Meets AI Revival - What You Need to Know
"Dino" coin rally, AI Expansion, CaffeineAI Launch, and More
Internet Computer ($ICP) caught traders’ attention this week as the price near tripled within a week at its peak and climbed nearly 200% month‑on‑month. This rally occurred alongside an unusual surge in other legacy altcoins where coins like ICP, Filecoin, Arweave posted strong gains over the last week mainly led by Zcash’s meteoric 1500% gain over the last 3 months.
In this edition we’ll dig into what the Internet Computer actually does, why AI upgrades have reignited interest, and how this sits within a wider capital rotation regime.
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What the Internet Computer Does
ICP is a project launched in May 2021 by the DFINITY Foundation based in Zurich aiming to act as a public world computer. Smart contracts on ICP (called canisters) run on a decentralized, sovereign network rather than on cloud servers where they can serve web content directly and support up to 500 GB of on‑chain storage, scheduled tasks, and HTTP outcalls.
Chain Fusion – ICP’s protocol for decentralized interoperability. Canister smart contracts can sign and submit transactions to other chains using threshold‑ECDSA keys, enabling trustless cross‑chain communication without traditional bridges. This unlocks use cases such as multi‑chain DEXs, borrowing protocols secured by Bitcoin, and on‑chain wallets that hold assets from multiple networks.
Native Bitcoin & multi‑chain support - Through Bitcoin adapters and chain‑key signatures, ICP smart contracts can hold BTC public keys and sign transactions directly on the Bitcoin network. This approach extends to other chains: direct integrations with Ethereum, Solana and EVM‑compatible networks mean canisters can read and write to multiple blockchains, allowing developers to build applications that use the compute and storage of ICP while tapping liquidity on those chains.
ckBTC and Chain‑Key Assets – ICP introduced ckBTC, backed 1:1 by BTC and benefits from ICP’s 1–2 second finality and negligible fees. ckBTC transactions are redeemable for native BTC and represent one of the first live applications of Chain Fusion.
ICP’s AI Pivot
ICP recently launched Caffeine, a no-code/low-code AI platform that allows users to build web applications from natural language prompts. It lets users describe an application in natural language, and a suite of AI models writes and deploys the app’s backend and frontend on ICP.
The system uses Motoko, ensuring that upgrades cannot accidentally delete data. Running entirely on ICP means no reliance on centralized cloud providers and chain‑key cryptography ensures code cannot be altered by hackers. Over 15,000 alpha testers tried Caffeine, with 26% returning daily.
Rotation into “Dino” Altcoins
As the broader markets and BTC retraced, and net inflows have stagnated, we have seen the same ball of capital rotating from coin to coin, starting off with Zcash’s dominance and eventual retrace. The rotation is clear when plotting the charts of FIL, AR, and ICP against ZEC.
ICP’s resurgence shows how narrative rotation can produce sharp rallies even when broader capital flows are negative.
Read more about it in our latest Pulse.
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