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Internet Computer's Latest Rally: Can This Upward Trend Be Maintained?

Internet Computer's Latest Rally: Can This Upward Trend Be Maintained?

Bitget-RWA2025/11/07 21:50
By:Bitget-RWA

- 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

(ICP) experienced significant growth in 2025, driven by regarding the expansion of blockchain infrastructure and the ongoing in DeFi. However, with the crypto sector facing ongoing volatility and security threats, investors are left to consider: Can this bullish trend endure?

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

and . Although detailed DApp adoption figures for are limited, the wider blockchain industry is clearly moving toward infrastructure that emphasizes scalability and developer adaptability. For example, Polygon’s DeFi lending TVL soared to $192.88 billion in Q3 2025, overtaking Ethereum, as platforms like and Lido led the lending and staking sectors, according to a
. This pattern highlights the critical role of infrastructure that enables fast, affordable transactions—a space where ICP’s “canister” smart contracts could excel, as mentioned in a
.

Yet, overall DApp activity dropped by 22.4% in Q3 2025, with SocialFi and AI DApps seeing reduced engagement, based on a

. This indicates that while infrastructure is advancing, keeping users engaged remains a hurdle. For ICP’s bullish outlook to persist, it must not only scale technically but also foster a vibrant ecosystem of applications that encourage ongoing user participation.

Internet Computer's Latest Rally: Can This Upward Trend Be Maintained? image 0

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

. Bitget Wallet’s stablecoin TVL jumped 523% during the same period, reflecting rising demand for transparent, on-chain yields, as reported by
. While ICP’s direct impact on this TVL is uncertain, its commitment to decentralized governance and interoperability fits with the sector’s move toward solutions suitable for institutions.

Ethereum and Solana continue to lead, with Ethereum’s TVL at $119 billion and Solana’s at $13.8 billion, according to a

. Still, Solana’s 33% drop in TVL reveals the vulnerability of ecosystems heavily dependent on speculative tokens like memecoins. ICP’s focus on sustainable, utility-based DeFi initiatives—such as real estate tokenization or cross-chain lending—could help it emerge as a more robust contender.

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

, with the protocol suffering a $128.6 million loss in a single breach, as noted by a
. Such incidents undermine trust and emphasize the necessity for strong security measures—an area where ICP’s “threshold cryptography” and decentralized governance may provide an edge.

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

. This shift could restrict ICP’s expansion if it cannot appeal to a wider audience. Cardano’s difficulties—with a TVL of only $262 million despite its promise—illustrate the crucial role of user adoption, as highlighted by 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.

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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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