How did Internet Computer (ICP) become a top-10 cryptocurrency overnight?

Traders valued Internet Computer (ICP) at $630 in its debut on Coinbase on Monday. On Binance, however, the dollar bids for the token surged to as high as $3,093 as of Tuesday. Meanwhile, HitBTC reported ICP at a peak of roughly $407.

The huge price differences across multiple cryptocurrency exchanges showed a berserk trading sentiment in the Internet Computer market, landing ICP in the list of top 10 cryptocurrencies by market capitalization, surpassing even veterans such as XRP, Dogecoin (DOGE) and Cardano (ADA), and reaching as high as the fourth spot.

ICP 1-hour candle close across multiple crypto exchanges. Source: TradingView

Major price corrections followed on profit-taking sentiment. Entering the Wednesday trading session, the ICP/USD exchange rate on Coinbase and Binance was about $338, and on HitBTC, it was $14 higher. The downside move prompted ICP to slip in crypto ranks — from fourth to eighth.

Why did ICP’s price rally?

The sudden arrival of ICP among the top-ranking cryptocurrencies caught many crypto traders and analysts off guard. A quick look into the token’s issuing authority, Internet Computer, described it as a “blockchain-based cloud computing project” that proposes to build an open, public network.

But the biggest takeaway for traders was the involvement of high-profile institutional players in the project. That included the United States-based angel investor Andreessen Horowitz, known for backing Twitter at its early stage, and Polychain Capital, a crypto-focused hedge fund in New York helmed by Olaf Carlson-Wee, who earlier served as the head of risk at Coinbase.

Meanwhile, the ICP token gained listing on top cryptocurrency exchanges right after its launch last Friday. That reflected a carefully structured strategy by Dfinity, the Zurich-based nonprofit backing Internet Computer, that landed ICP tokens right into the conscience of everyday traders.

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