$ICP Supply Dynamics: Approaching a Deficit
This analysis focuses on observable on-chain data and tokenomics.
The Acceleration of ICP Burns
The growth in ICP permanently removed from circulation (burned) is significant and non-linear:
· 2023: 58,000 ICP burned
· 2024: 553,000 ICP burned
· 2025: 1.66 million ICP burned
This trend represents a clear acceleration, driven by the Internet Computer's core utility: every canister (dApp), cycle, and transaction consumes ICP.
The Supply Mechanics
Increased network adoption directly leads to increased ICP burn. The model is simple: more utility = reduced circulating supply.
The Inflection Point
Metrics indicate the protocol is approaching a key threshold: when annual burns exceed new emissions. Crossing this line shifts the tokenomics into a net supply deficit.
Forward Outlook
Data projects that 2026 could initiate a structural supply deficit. Market dynamics typically price in such shifts ahead of the confirmed equilibrium change.
#ICP #InternetComputer #Tokenomics #SupplyCrunch #BlockchainData
