Internet Computer and NEAR Protocol Underperform as CoinDesk 20 Index Declines

Executive Summary

Internet Computer (ICP) and NEAR Protocol (NEAR) experienced daily declines of 3.5% and 2.8%, respectively, contributing to a 0.2% drop in the CoinDesk 20 Index and signaling a minor market pullback amidst broader altcoin underperformance.

The Event in Detail

Internet Computer (ICP) recorded a 3.5% daily decline. As of October 15, the asset traded at $3.47, reflecting a 1.67% intraday decrease following a price rejection around the $3.55 level. NEAR Protocol (NEAR) also underperformed, falling 2.8% on the day. Over the past seven days, NEAR has seen a more substantial decline of 15.00%. The broader CoinDesk 20 Index, which tracks the performance of the top 20 cryptocurrencies, registered a 0.2% decrease. In contrast to these declines, Solana (SOL) observed a modest gain of 1.2%, and XRP posted a 0.4% increase, indicating selective market movements.

Market Implications

The price movements suggest a soft bearish continuation for ICP, which has also experienced a 35% decline over the last 60 days and a significant drop from $12 to $4 since early 2025. ICP's 30-day correlation with Bitcoin (BTC) has risen to 0.89, increasing its vulnerability to wider market sell-offs. NEAR Protocol's weekly underperformance of 15.00% contrasts with a global cryptocurrency market decline of 8.70% and a Smart Contract Platform sector decline of 7.50% during the same period, highlighting specific weakness. These declines occur within a broader context of shifting market dynamics, including Bitcoin's dominance reaching 58.61% in October 2025 and the Altcoin Season Index falling by 51% monthly. Shrinking altcoin liquidity and a 15% weekly decrease in derivatives open interest to $966 billion further contribute to a cautious market environment for these assets.

Business Strategy & Project Positioning

Internet Computer (ICP) has faced challenges attributed to a "muddled narrative" and a "cycle of redistribution," where existing demand is met by strategic offloading from large holders, capping potential rallies. Despite this, ICP maintains strong fundamental attributes, a visionary roadmap, and advanced network architecture, particularly for use cases in AI cloud replacement and decentralized application hosting. A notable development in 2025 was the Dfinity team's launch of Caffeine AI in June and July, a large language model designed for direct interaction and code deployment on the Internet Computer. NEAR Protocol, positioned within the competitive Smart Contract Platform ecosystem, continues to develop its offerings but has recently underperformed relative to its peers and the broader market.

Broader Market Context

The modest 0.2% decline in the CoinDesk 20 Index reflects a general market cooling rather than a severe downturn. While some altcoins like ICP and NEAR show weakness, assets such as Solana and XRP have demonstrated resilience and even registered gains, indicating a market characterized by selective capital rotation. Seasoned investors have been observed reallocating profits from these stronger performers into early-stage opportunities, suggesting a nuanced investment landscape where individual project fundamentals and market sentiment play significant roles in asset performance amid overall market fluctuations. This selective movement contrasts with previous periods of more uniform market trends, emphasizing the importance of differentiated project value propositions in the current environment.