ICP Value Jumps 30% Following Significant Network Update: Enhanced On-Chain Governance and Layer 1 Expansion Drive DeFi Advancement

The Protocol (ICP) has drawn significant interest from both investors and developers, as its token value has climbed more than 30% in recent months. This impressive growth is a direct outcome of major enhancements to the network’s on-chain governance and Layer 1 scalability. As traditional blockchains struggle with inherent limitations, ICP’s forward-thinking upgrades—such as Fission and Knot—are establishing it as a key driver for decentralized finance (DeFi) expansion. Here’s how these developments are transforming the industry and why this marks a crucial turning point for .

On-Chain Governance: Ushering in a New Age of Decentralized Control

ICP’s achievements are rooted in its Active Liquid Democracy governance framework, which underwent significant refinement in 2025. This approach lets token holders assign their voting rights to trusted parties or individuals, yet they can reclaim those rights whenever they choose. The rollout of the Periodic Confirmation of Following feature in early 2025 further improved this system by requiring neuron holders to actively reaffirm their governance preferences every six months.

that governance stays flexible and up-to-date, minimizing the influence of inactive or outdated decisions on the network.

These governance enhancements have led to a notable increase in both institutional and developer engagement.

, which launched in October 2023, shows it has encouraged more token staking for governance and rewards, drawing in over 760 monthly active developers in 2024 and 2,155 new developers during the same timeframe. Tools such as Flux and Vertex have enabled developers to create scalable, AI-powered decentralized applications, while the Caffeine AI toolkit—introduced in July 2025—has significantly lowered technical entry barriers. to a 22.5% jump in Total Value Locked (TVL) in just one day, highlighting the platform’s increasing attractiveness to DeFi innovators.

Layer 1 Scalability: Fission and Knot Usher in a New Standard

While governance lays the foundation, ICP’s Fission and Knot upgrades are at the core of its scalability transformation. Fission, which is currently being implemented, enhances load distribution and computing power, allowing the network to process thousands of transactions per second with almost immediate finality. This stands in sharp contrast to Ethereum’s costly and slow transaction model, which often deters users.

The Knot project, set for release in October 2025, brings in Generation 3 node hardware and improved incentive structures. By further decentralizing the network’s infrastructure, Knot enables scaling without sacrificing security or decentralization.

by Chain Fusion, a solution that allows seamless integration between ICP and , , and , building a cross-chain environment that broadens DeFi’s possibilities.

The impact is remarkable: ICP now boasts over 1.2 million active wallets, with developers utilizing the reverse gas model—where computational costs are prepaid—to deliver affordable solutions for businesses and metaverse projects.

; it’s being realized in practice, as DeFi projects use ICP’s infrastructure to provide faster, more cost-effective, and transparent financial products.

The Price Rally: Innovation as the Driving Force

The recent 30% rise in ICP’s price is far from random.

, the token had experienced a 10% increase over the previous quarter, fueled by short squeezes and a technical rebound from the $3.33 support mark. Market data indicates that leveraged traders were unprepared for the upward trend, intensifying both buying activity and volatility. Meanwhile, —which includes ICP—has gained from clearer regulations, such as the SEC’s no-action letter to , resulting in a 20% surge in trading volume within a single day.

Importantly, these price trends coincide with the rollout of Fission and Knot. The TVL boost driven by Caffeine AI and the Neuron Fund’s institutional traction have created a positive feedback loop: improved governance draws in developers, better scalability attracts users, and both factors increase token demand. The outcome? A self-sustaining cycle that has lifted ICP’s market capitalization to $2.13 billion, with daily trading volume reaching $449.92 million.

the view that the price rally is rooted in genuine technological progress.

Looking Forward: What This Means for Investors

For those considering investment, the takeaway is straightforward: ICP is more than just a speculative play—it’s a foundational platform for the upcoming era of DeFi. Its governance structure keeps the network adaptable, while its Layer 1 improvements lay the groundwork for widespread adoption. The recent price momentum reflects these strengths,

the $6.00–$8.25 price range as the next milestone.

Nevertheless, some risks persist.

is still experiencing a downward trend, and ICP needs to hold above $3.78 to confirm a reversal. Even so, the project’s fundamentals remain strong. With Fission and Knot nearing launch and the Neuron Fund driving further innovation, ICP is well-placed to benefit from the resurgence of DeFi.

Conclusion

The Internet Computer Protocol’s 30% price increase highlights the impact of targeted innovation. By reinventing both on-chain governance and Layer 1 scalability, ICP has built a platform that not only rivals Ethereum but surpasses it in several key aspects. For investors seeking to participate in the next evolution of DeFi, ICP stands out as a strong contender: a network where governance is participatory, scalability is boundless, and growth is clearly demonstrated.