Internet Computer's Latest Rally: Can This Upward Trend Be Maintained?
- Internet Computer (ICP) surged in 2025 amid blockchain infrastructure adoption and DeFi TVL growth, but faces sustainability questions due to volatility and security risks. - DApp engagement dropped 22.4% in Q3 2025, highlighting challenges in user retention despite infrastructure advancements like ICP's scalable "canister" smart contracts. - DeFi TVL hit $237B in Q3 2025, driven by institutional interest in stablecoins and RWAs, though ICP's direct contribution remains unclear compared to Ethereum and S
The
Blockchain Infrastructure Adoption: Laying the Groundwork for Expansion
The Internet Computer stands out due to its distinctive design, positioning itself as a scalable and accessible alternative to
Yet, overall DApp activity dropped by 22.4% in Q3 2025, with SocialFi and AI DApps seeing reduced engagement, based on a
DeFi Momentum: TVL Expansion and Institutional Engagement
DeFi’s total value locked reached a historic $237 billion in Q3 2025, propelled by institutional investments in stablecoins and the tokenization of real-world assets (RWA), according to a
Ethereum and Solana continue to lead, with Ethereum’s TVL at $119 billion and Solana’s at $13.8 billion, according to a
Obstacles: Security Concerns and Market Instability
Despite DeFi’s expansion, the sector faces considerable dangers. In November 2025 alone, rug pulls and hacks wiped out $12 billion in TVL, according to a
Additionally, even though DeFi TVL climbed 41% in Q3 2025, the number of daily active wallets decreased by 22%, pointing to a transition from retail to institutional users, according to a
Conclusion: A Bullish Outlook with Important Conditions
The Internet Computer’s rally is underpinned by its infrastructure capabilities and the overall surge in DeFi TVL. Nevertheless, its long-term success depends on three key aspects:
1. User Retention: ICP needs to cultivate a dynamic DApp ecosystem that keeps users engaged.
2. Security: Taking proactive steps to prevent hacks and rug pulls is vital for sustaining confidence.
3. Institutional Adoption: Collaborations with stablecoin providers and RWA tokenization projects could open up new TVL opportunities.
While the bullish scenario is feasible, investors should pay close attention to how ICP tackles these hurdles. The DeFi sector is changing quickly, and only platforms that combine innovation with stability are likely to succeed.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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