Internet Computer Faces Headwinds as Web 3 Adoption Slows

Internet Computer price has pulled back in the past few days as concerns about the crypto industry remains. ICP declined to a low of $6.39, which was remarkably lower than the year-to-date high of $8.16. It remains about 100% above the lowest level in 2022. So, is Internet Computer a good crypto to invest in?

Internet Computer and Web 3

Internet Computer is one of the most important players in the blockchain industry. It is significantly different from other well-known smart contract blockchains like Ethereum, Solana, and Polkadot. It is a more comprehensive platform that is used to build applications.

Internet Computer makes it possible for people to build fully decentralized applications (dApps) that don’t rely on centralised platforms like Microsoft Azure, Google Cloud, and Amazon’s AWS. As a result, it is a more independent platform.

For example, most blockchains, including Ethereum, are all operated using Amazon’s AWS or Microsoft Azure. As such, if these centralized companies decide to suspend their operations, there is nothing that prevents them from doing so.

Most of Internet Computer’s technology is built upon its decentralized technology. This includes its website. Further, the developers introduced the concept of smart contracts in its platform, which makes it possible for people to build dApps and other platforms.

Therefore, some analysts believe that Internet Computer has a chance to become the biggest player in the blockchain industry. Indeed, some analysts expect that many of the existing blockchains like Ethereum and Solana will migrate to the network in the future.

Find out how to invest in Internet Computer.

Recent developments in the ecosystem have been encouraging. For one, some of the dApps created in Internet Computer like Distrikt are gaining traction among users. At the same time, the number of code commits in the ecosystem has increased in the past few months.

ICP price faces challenges ahead

Internet Computer promises to change the world in terms of how it computes. It seeks to achieve this by creating a platform where developers can build quality dApps while paying minimal amounts of money. In doing this, it hopes to become the biggest infrastructure provider for Web 3, an industry estimated to disrupt over $823 trillion worth of value by 2031.

However, it faces significant challenges ahead. Perhaps, the biggest challenge is the fact that introducing people to Web 3 networks will take time. Besides, people are already comfortable using popular Web 2 platforms.

For example, while there is demand for independent social media platforms like Mastodon, the reality is that most people still prefer apps like Twitter and TikTok. Similarly, decentralized storage networks like Storj have failed to gain traction compared to the likes of Box and DropBox.

Therefore, ICP price faces a major challenge going ahead since most of its dApps are still niche products. It will also take time to educate users about its benefits. Most importantly, its dApps in industries like DeFi and NFTs will take more time to gain traction.

All this explains why the ICP price has crashed from its all-time high. According to CoinMarketCap, it has a market cap of over $1.8 billion and is the 37th biggest coin in the world. At its peak, it had a market cap of over $30 billion.