ICP Price Dips 3% as Caffeine Launch Boosts Market

ICP Price Dips 3% as Caffeine Launch Boosts Market

Internet Computer Protocol (ICP) saw a 3% price drop ahead of the Caffeine launch by DFINITY Foundation, an event held on July 15, 2025, in San Francisco.

The launch signifies a major leap for ICP by integrating AI into dapp creation, drawing attention from institutional buyers. ICP rebounded swiftly as these buyers entered the fray, stabilizing the price after notable supply-side measures.

The Caffeine launch saw large institutional investors buying ICP, pushing the price from a low of $5.27 to nearly $5.43. DFINITY implemented a token burn of 1 million ICP to reinforce market confidence, alongside revealing the vetKeys privacy protocol.

The introduction of Caffeine, showcased by Dominic Williams, underlined ICP’s commitment to technological advancements. Dominic Williams, Founder & Chief Scientist of DFINITY Foundation, stated,

The platform’s debut marks a significant milestone in Internet Computer’s strategy to merge on-chain AI with seamless dapp creation, helping to ignite buying interest late in the day.

Historically, such technological revelations lead to price movements within Layer 1 ecosystems. Previous rebounding trends have been observed during major releases. No public statements from regulatory bodies like SEC were reported on the Caffeine launch’s impact, indicating stable government interaction.

The new AI capabilities and privacy protocol introduced by DFINITY are expected to bolster long-term confidence. Market analysts predict that continued technological advancements could solidify ICP’s position in the cryptocurrency sector.