Internet Computer (ICP) has staged a sharp rebound, surging over 39% in the past week to outpace major cryptocurrencies. The rally, which saw ICP post nearly 26% gains in 24 hours, places the token atop the daily leaderboard among the top 100 assets. This move forms part of a broader market recovery, with Bitcoin and Ethereum also resuming their upward trends. It seems the market finally decided that a diet plan might be more appealing than a buffet of endless inflation.
The primary catalyst appears to be the DFINITY Foundation's newly released MISSION70 whitepaper. Published on January 13, 2026, the paper outlines a comprehensive strategy to slash ICP's inflation rate by 70% by the end of 2026. The plan employs a dual approach: supply-side reforms and demand-side acceleration. Essentially, the protocol is going on a strict calorie deficit, hoping to look good for the beach by the end of 2026.
Supply-side measures, projected to contribute a 44% reduction, include lowering voting and node provider rewards, capping reward pools, and simplifying maturity modulation. The whitepaper argues that current node rewards exceed infrastructure costs, allowing for cuts without compromising security. This is expected to reduce ICP minting from 9.72% to 5.42% annually. It’s like realizing you’ve been tipping the pizza delivery guy $50 for a $20 pie and deciding to cut back to a reasonable $5.
For the remaining 26% reduction, DFINITY is betting on increased network activity. The plan involves boosting demand with AI-powered on-chain applications and new cloud engine products. The team projects that higher usage will burn more ICP through computational fees, creating deflationary pressure. To hit the 70% target (from 9.72% to 2.92% inflation), the cycle burn rate must increase from 0.05 XDR to 0.77 XDR per second. This is the "earn your dessert" phase of the diet, assuming the network can actually work up an appetite.
Market confidence is also visible on-chain. Nansen data shows ICP exchange balances plummeted by over 58% in the last 24 hours, a classic sign of holders moving tokens to self-custody or staking, reducing immediate selling pressure. Meanwhile, network usage is spiking; Chainspect reports Internet Computer processed approximately 90 million transactions in a single day, its highest activity in over a month. It looks like the whales are taking their tokens off the buffet line and into cold storage, perhaps to avoid the temptation of a mid-diet snack.
Technically, analysts note a familiar bullish flag pattern on the weekly chart, reminiscent of its November 2025 structure. If momentum holds, a breakout could target $7.5, with $10 as a potential next objective. As DFINITY's economic overhaul unfolds, the market watches to see if this rally is a speculative spike or the start of a lasting shift. The chart looks promising, but in crypto, patterns can break faster than a New Year's resolution on February 1st.
