deflationary

Something didn’t add up when I was looking at the on-chain dashboard last night. Everyone is busy chasing the latest AI meme coins, but they’re looking left while the real structural shift is happening to the right. I noticed a pattern in the $ICP burn rate that most people are completely overlooking because it’s happening underneath the surface of daily price action.
When I first looked at this a year ago, the burns were just a trickle, barely making a dent. But right now, the network is eating its own supply at an accelerating pace. We’ve seen the annual burn jump from around 10.9K in 2021 to over 550K in 2024, and the latest data suggests we’re on track for 1.66 million tokens erased in 2025. That momentum creates another effect: we are quietly approaching a "supply shock" where the liquid available supply simply cannot meet the growing demand from developers who need cycles to run their apps.
Understanding that helps explain why the current price around $3.20 feels so detached from reality. On the surface, you see standard inflation from node rewards, but underneath, the "reverse gas" model is finally scaling. On most chains, users pay gas; on ICP, the canisters—the smart contracts—pre-pay for computation by burning ICP into cycles. As decentralized AI like Caffeine starts to gain texture and real-world usage, the "fuel" needed to power these on-chain LLMs is going to require massive, steady burns.
What struck me most is the DFINITY Foundation's "Mission70" whitepaper, which plans to slash inflation by 70% in 2026. If this holds, we aren't just looking at a reduction in growth; we’re looking at a foundation where the burn rate could actually flip the entire network deflationary sooner than the "expert" models suggest. Meanwhile, the "falling wedge" pattern on the long-term chart is screaming for a breakout toward $3.55 and beyond.
Early signs suggest that once the market realizes the supply isn't just "distributed" but is actually vanishing, the re-pricing will be violent. It remains to be seen if the retail crowd wakes up before the smart money finishes positioning, but the on-chain math is earned, not hyped. We are moving from a period of "if it works" to "how fast it burns."
This isn't just another cycle; it’s a total monetary policy shift. ICP is changing how we think about "world computers" by becoming the first one that actually pays for its own existence through usage. My sharp observation? The supply isn't just shrinking—it’s being consumed by the very future it's building. 🧠💎
What’s your take? Are you watching the burn metrics or just the candle colors? Let’s talk below. 👇
#ICP #InternetComputer #CryptoAnalysis #Deflationary #Web3 #BinanceSquare #SmartMoney $ICP $BTC

LThe math is shifting and the market hasn't fully reacted. We are officially entering the Supply Deficit Era for Internet Computer. 📉🔥

​The $ICP burn rate isn't just growing; it's accelerating at an exponential pace as the "World Computer" adoption scales:

​🔥 The Burn Velocity:

​2023: ~58K ICP Burned
​2024: ~553K ICP Burned
​2025: ~1.66M ICP Burned
​2026 Prediction: Deficit Territory ⚠️

​Why this matters: Unlike traditional chains, every single dApp, AI model, and enterprise service running on the Internet Computer must burn ICP to power its "cycles." As the ecosystem grows, the "Cycle Burn Rate" acts as a massive vacuum on circulating supply. 🌪️

​Current Market Snapshot:

💰 Price: $3.509

📈 24H Change: +11.68%

🚀 Status: Supply tightening fast

​We are approaching the "Holy Grail" of tokenomics where Burns > Emissions. When the scarcity becomes obvious, the price usually moves without warning. Smart money positions before the shortage, not after. 💎🦾

​#ICP #CryptoAlert #Deflationary #Web3Infrastructure #BlockchainTech

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Deflationary pressure is the secret sauce for token value. In Q1 2026, @Walrus 🦭/acc is implementing "Dynamic Burn Enhancements." Every time a data "blob" is stored or renewed, a portion of the $WAL fee is permanently removed from circulation. As the network activity scales with new AI and gaming partnerships, the burn rate is projected to accelerate. Tracking the $WAL burn on-chain is now a primary metric for analysts. When supply shrinks and utility grows, the long-term outlook for #Walrus becomes incredibly bullish. #Walrus #TokenBurn #Deflationary $WAL