For the year, Internet Computer (ICP +4.61%) is up a resounding 30%. That's well ahead of market bellwether Bitcoin, which is up a modest 5% in 2026.
Based on that data alone, you might be convinced that this high-flying cryptocurrency is worth a closer look -- especially since it is often lumped into the group of cryptocurrencies known as artificial intelligence (AI) coins. Surely, any cryptocurrency that has the tailwinds of artificial intelligence behind it is a buy, right?
Internet Computer's historical track record
Unfortunately, the answer is no. Just take a look at the long-term chart for Internet Computer. After trading as high as $750 back in May 2021, it has dropped precipitously in value, and now trades for just a few bucks. It's down 99.5% from its glory days.
CRYPTO: ICP
Key Data Points
When people talk about a cryptocurrency falling all the way to zero, this is what they are talking about. Cryptocurrencies can -- and do -- lose almost all of their value. It happens with meme coins all the time.
That's why cryptocurrency investing can be so risky: The valuation of any cryptocurrency is often propped up by hype, buzz, and speculation. When that wears off, a coin can collapse in value.
Is there any reason to invest in Internet Computer?
That being said, there's a case -- albeit a weak one -- for investing in Internet Computer today. That's because Internet Computer currently ranks as the third-largest AI coin on the planet, with a whopping $2 billion market cap. For investors chasing the AI investment trend, Internet Computer might look like a potential buy.
Image source: Getty Images.
But dig a little deeper, and it's easy to see that Internet Computer is not a "real" AI coin. Instead, it is a cryptocurrency that is attempting to reinvent and rebrand itself for the AI era.
Back in 2021, the plan by Internet Computer was to host web services and decentralized applications on its blockchain. The ultimate vision was to create a "World Computer" to replace traditional IT infrastructure. At the time, it seemed like an innovative idea, and that helps to explain why it skyrocketed in value for a short period of time.
But something happened in late 2022 that ensured that Internet Computer would never make a comeback: the launch of ChatGPT and the rise to prominence of generative AI.
Internet Computer has attempted to pivot into this trend, by creating new ways for AI to build decentralized apps for its blockchain. The new slogan is: "The sovereign cloud where AI builds the web." However, it's been tough sledding thus far.
All of which is to say: There's an outside chance that Internet Computer revives from its current comatose state. However, just take one last long look at how ICP has flatlined over the last few years, and it's easy to come to a conclusion: It's time to sell your Internet Computer and move on to better investments elsewhere.
