ICP jumps 9% as 24h volume spikes 93% following token burn proposal

Internet Computer's native token ICP saw a 9% price escalation amid news of a strategic token burn proposal by the DFINITY Foundation. The token's 24-hour trading volume also surged by 93%, signaling strong investor interest. The DFINITY Foundation, overseeing the Internet Computer network, outlined plans to enhance token economics by allocating 80% of cloud engine revenues to node providers while dedicating the remaining 20% to purchase and burn ICP tokens. This move is designed to tether token supply reduction directly to network utility and demand. The price movement has placed ICP among the top performers as the cryptocurrency market displays signs of recovery. ICP's recent spike brings it closer to its mid-February price levels, but technical indicators show it is still navigating below pivotal short-term moving averages. Despite these hurdles, the Relative Strength Index (RSI) and the Moving Average Convergence Divergence (MACD) on the daily chart suggest that bullish sentiment is building. Investors and traders are closely watching the token's response to this shake-up in tokenomics, with potential implications across the broader blockchain and cloud computing landscape.