The Graph is a protocol that can be used for indexing and querying data from other blockchains and IPFS, including Ethereum. Its infrastructure allows developers to build and publish open APIs, known as subgraphs, which can make data on the blockchain more accessible. The data is indexed by a network of node operators within The Graph's ecosystem. 

The open-source subgraphs are available to all developers, to foster the creation of more dApps. Some of the leading dApps that have been developed and are using such subgraphs include Uniswap, Audius, DAOstack, Decentraland, Synthetix and Aave. The subgraphs make it easier for dApp developers to gain access to indexing services, instead of wasting considerable time and effort in the development of proprietary indexing servers, and it also improves decentralization. 

In addition to Ethereum, The Graph is adding support for The Graph Network with NEAR and EVM compatible chains. Once this feature is rolled out, developers will be able to access subgraphs for more blockchain networks, vastly increasing their use cases and the adoption of The Graph's technology for deploying smart contracts. This, in turn, has the potential to send the value of its native token, GRT, higher in the coming months. 

The Graph Breakdown

GRT, The Graph's native token, is an ERA-20 token on the Ethereum blockchain. It is used to allocate resources within the ecosystem, and it can be earned by users who perform the roles of Active Indexers, Curators and Delegators within the network. Indexers earn GRT as indexing rewards and query fees, while a portion of the query fees gets paid out to Curators for the subgraphs they signal on. Delegators also earn a portion of the income paid out to Indexers, based on who they delegate to. 

The Graph already offers support to Ethereum and hosted services on 13 blockchains, including NEAR, Celo, Polygon, Optimism, Avalanche, Fantom and more. As it adds support for more networks in the future, the volume of on-chain activity will rise, driving the need for more indexing and querying activities, which in turn will drive up the demand for the GRT token and its value. 

With DeFi continuing to expand its footprint and gain mainstream acceptance, the demand for indexing and querying services, like what The Graph offers, are certainly going to increase into 2022 and beyond. As a result, the GRT token offers a promising avenue for investing in the crypto space. 

The Graph History

The concept of The Graph was first introduced in July 2018, as a method of developing a decentralized indexing protocol for Web3 applications. Designed to support dApps on the internet, powered by public infrastructure, The Graph offers full stack decentralization to prevent a single point of failure and higher levels of interoperability, which were previously unimaginable. The Graph was originally co-founded by Yaniv Tal, Brandon Ramirez and Jannis Pohlmann, all of whom have engineering backgrounds. The trio has shared an association of 5 to 8 years. 

Since then, more than 20,000 developers have created subgraphs that can be accessed across more than 20 different blockchain networks. The Graph has received funding from several prominent ventures, including Coinbase Ventures, CoinFund, Framework Ventures, LedgerPrime, Lemniscap and ParaFi Capital, to date. Its board of advisors include Esteban Ordano, Founder and CTO of Decentraland, Jehan Tremback, Founder and Lead Protocol Designer of Althea Mesh, Richard Burton, CEO of Balanced Software and Zaki Manian, Co-founder of Iqlusion. 

As of December 2021, The Graph is in the Mission Control testnet phase, and it is expected to have its mainnet launch once the team of developers improves its model, simulates more protocol parameter choices and deploys more network upgrades. 

The Graph Price Factors

The price of The Graph's native token, GRT, is likely to rise, as long as the DeFi market continues to grow, as this is one key sector where its technology truly shines. The specific functionality it provides for various blockchain networks could see rapid adoption as more innovation takes place in the world of DeFi, fostering its growth and mainstream adoption. 

Furthermore, technical upgrades from its developers, which could make The Graph more versatile in terms of use cases, could also keep the GRT price supported in the future. For instance, when The Graph team announced the launch of Edge & Node, a new software development company focused on maintaining the core protocol and developing new trust-minimized tools and applications, which saw the GRT rate surging by nearly 150%. This sharp spike in the value of The Graph occurred in February 2020, less than a week after the announcement. 

Similarly, The Graph's rate could see significant fluctuations, on the basis of news of grants and funds that could further improve its ecosystem and encourage more developers to work on subgraphs. Any news of partnerships or expansions to support more blockchain networks could also fuel investor interest in its native token, sending the GRT rate higher. 

On the downside, the price of GRT could see a drop, amid a bearish market sentiment affecting the wider crypto sector. This usually happens whenever there is news of regulatory clampdowns against cryptocurrencies in certain countries, or any other negative news in the media, which sends the price of leading cryptos, like Bitcoin and Ethereum, lower. At such times, investors stay away from digital assets and drive sell-offs that send the price of all coins, including the GRT, lower. 

Trading The Graph

Trading The Graph requires a little more care and research than is the case with most of the leading digital coins in the market, as it has lower levels of liquidity and may not be supported by several cryptocurrency exchanges. Take your time to understand the technology and vision behind the creation of The Graph and stay updated about all the latest developments within its ecosystem. This can give you a clearer view of possible price action, instead of blindly following technical analyses put out by crypto experts and influencers. Keep in mind that fundamentals and sentiment are greater drivers of price action, and they can be more useful to guide you on placing trades than mere technical analyses. 

As a next step, shortlist and select the right crypto exchange or broker that offers trading for GRT, and register for an account with them. You can then convert your trading capital from fiat currency to purchase GRT and hold or trade it against other cryptocurrencies, based on your analysis and trade ideas.