According to CoinMarketCap, Internet Computer, a cryptocurrency that just launched on Monday, has a market value of about $35.8 billion and is currently trading at around $289.
On Monday, the market value soared to more than $90 billion (at a price of around $731), but within minutes, it plummeted to as low as $18 billion (at a price of about $146).
The Dfinity Foundation, the cryptocurrency’s creators, intend for Internet Computer to become a decentralised version of the internet.
The Internet Computer blockchain, like the Ethereum blockchain, employs smart contracts, which can power a variety of applications and platforms.
Decentralized applications, such as DeFi (aka decentralised finance) apps, could be created, for example. DeFi apps use cryptocurrency to recreate traditional financial systems. Furthermore, developers can use the Internet Computer blockchain to create websites and other internet services such as social media or messenger applications.
However, unlike Ethereum, Dfinity claims that the Internet Computer blockchain is much faster and less expensive — comparing its speed and capabilities to the internet — due to the way it is set up.
“The Internet Computer works very differently than any other blockchain,” Dominic Williams, the Dfinity Foundation’s founder and chief scientist, recently told Bloomberg. “Many blockchains now operate primarily in the cloud. The Internet Computer is entirely powered by dedicated hardware installed by independent parties all over the world.”
According to him, it can run at web speed and expand its capacity in response to demand.
Williams pointed out that with traditional internet, developers or users may rely on pre-existing programmes developed by large tech companies. However, with the Internet Computer, users can create their own applications or websites on its blockchain, which, because it is decentralised, is not run by any single entity, he explained.
Investors such as Andreessen Horowitz and Polychain Capital contributed more than $120 million to the Internet Computer project.
Despite the fact that its market value made headlines, the future of its success remains to be seen.
Since its inception, the Internet Computer token has experienced price volatility, as is typical of cryptocurrencies. While the price may settle over time, Internet Computer faces competition from other blockchains that use smart contracts, such as Ethereum — especially as Ethereum 2.0 is upgraded — and Cardano.
Internet Computer is currently ranked ninth out of the top ten cryptocurrencies.
With a market value of around $493 billion, Ether, the cryptocurrency powered by Ethereum, is ranked second.