Internet Computer’s Latest Rally: Driven by Network Enhancements and Growing Institutional Interest

Internet Computer (ICP) in 2025: Growth, Challenges, and the Road Ahead

In 2025, Internet Computer (ICP) has seen a remarkable surge in value, fueled by significant technical improvements, high-profile institutional collaborations, and a wave of speculative enthusiasm. However, this rapid ascent raises an important question: Is ICP’s momentum built to last, or is it simply the product of short-lived hype? To find answers, it’s essential to examine both the platform’s technological progress and its real-world usage, while also evaluating the reliability of the data supporting its growth story.

Major Technical Advancements: Building for the Future

ICP’s recent upgrades—Fission, Stellarator, and the soon-to-launch Meridian and Flux milestones—have transformed it into a powerful decentralized cloud platform. The Fission and Stellarator updates, rolled out in 2025, boosted the network’s computational power and data throughput by 50%, paving the way for enterprise-level applications. Storage capacity has also grown, with each subnet now supporting up to 2 TiB and the entire network offering 94 TiB across 47 subnets. Notably, ICP stands out for its energy efficiency, consuming only 0.003 Wh per transaction, making it one of the most environmentally friendly blockchains available.

The upcoming Meridian upgrade, expected in October 2025, will bring Dogecoin into ICP’s Chain Fusion framework, enabling smart contracts to hold and transfer DOGE. This move, alongside existing integrations with Bitcoin, Ethereum, and Solana, strengthens ICP’s position as a central hub for cross-chain activity. The Flux milestone is set to further improve network scalability by optimizing load balancing across subnets. These technical strides, combined with ICP’s innovative Active Liquid Democracy governance, have attracted major institutional partners, including Microsoft Azure and Google Cloud.

Adoption in Practice: Mixed Signals

When it comes to real-world usage, the data presents a complex picture. In the third quarter of 2025, daily active addresses on ICP increased by 35%, and decentralized exchange (DEX) trading volumes soared to $843.5 million, up from $532.53 million the week before. On November 10, 2025, daily trading volume reached $1.14 billion—the highest since December 2023. Despite these impressive figures, DApp engagement dropped by 22.4% during the same period, highlighting a disconnect between infrastructure expansion and actual user participation.

Speculative trading activity also exploded, with volumes rising 261% in Q3 2025 as both retail and institutional investors chased the rally. However, the Total Value Locked (TVL) metric reveals inconsistencies: while some reports claim TVL has reached $237 billion, independent sources like DeFiLlama and CoinGecko confirm only $1.14 billion. This gap casts doubt on the accuracy of ICP’s reported metrics and suggests that much of the recent growth may be driven more by speculation than by organic demand.

Institutional Partnerships: Opportunities and Risks

Strategic alliances have played a pivotal role in ICP’s recent expansion. Collaborations with Microsoft Azure and Google Cloud have enhanced the platform’s scalability and appeal to large enterprises. Meanwhile, a prototype developed with the United Nations Development Program demonstrates ICP’s potential for secure, global data infrastructure. The introduction of Chain Fusion and decentralized AI tools like the Caffeine AI toolkit is also drawing interest from organizations seeking hybrid blockchain solutions.

However, this reliance on institutional investment brings its own set of risks. Recent analyses suggest that the surge in TVL and trading volumes is largely driven by tokenized real-world assets and institutional inflows, rather than consistent user engagement. This pattern reflects a broader trend in the crypto sector, where speculative capital often outpaces genuine adoption.

Long-Term Viability: The Need for Real User Value

ICP’s continued success depends on its ability to translate technical innovation into meaningful benefits for users. While the Fission and Stellarator upgrades have positioned ICP as a strong alternative to established cloud services like AWS and Azure, the decline in DApp usage highlights the challenge of turning infrastructure improvements into lasting user engagement. The platform’s energy efficiency and cross-chain capabilities are impressive, but sustained growth will require a thriving developer community and user-friendly applications.

Moreover, questions remain about the reliability of ICP’s reported metrics. If TVL and DEX volumes are overstated, the market could face a correction as these discrepancies come to light. As institutional adoption increases, both regulators and investors are likely to scrutinize these figures more closely.

Conclusion: Cautious Optimism for ICP’s Future

ICP’s recent rally showcases the impact of technological advancement and institutional support. Its upgrades have established a solid foundation for scalability and sustainability, and partnerships with leading cloud providers have enhanced its credibility. However, the platform’s long-term prospects will depend on bridging the gap between infrastructure growth and real user adoption. Addressing the decline in DApp engagement and ensuring transparency in reported metrics will be crucial for ICP to secure its place as a leader in decentralized cloud computing. For now, the market should remain vigilant—celebrating progress while keeping an eye on underlying challenges.