About The Graph
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.
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.
GRT/USD - FAQs
The Graph is a Web3 protocol that makes it easier to index and query on-chain data with GraphQL. The open source protocol allows developers to create and publish open APIs, known as subgraphs, which can be used by a wide variety of dApps across several leading blockchain networks, starting with Ethereum.
You can start trading The Graph (GRT) by looking for a reliable crypto exchange, broker or platform that lists the token among its offerings. After exploring and comparing the benefits and features of your choice, register for an account on the platform. Once you have successfully opened your account, you can convert your trading capital from fiat to purchase GRT, to hold and exchange it against other fiat currencies, cryptos and stablecoins, based on the price action, and to implement your trade ideas.
The Graph is an ERC-20 token, so you can store your GRT holdings in any supported wallet. Some of the popular choices include MyEtherWallet, Ledger, Trezor, MyCrypto, Coinomi, MetaMask and Trust Wallet.
The Graph can be used for conducting digital transactions and transferring payments to fellow holders of wallets that support this ERC-20 token. Some wallet services, such as Freewallet, let their users buy gift cards, recharge their mobile phone balance, purchase other cryptocurrencies, and more, using their holdings.
Most countries around the world permit their residents to buy, hold and sell cryptocurrencies, such as The Graph. However, some countries have enforced a ban on such activities. It is recommended that you read up on the latest news and developments surrounding the regulation of cryptocurrencies in your country of residence before buying The Graph.
The UK has not yet implemented any specific measures to regulate The Graph, but it does allow its residents to buy, exchange and hold GRT. However, recently, the FCA made it mandatory for businesses operating in the crypto sector to apply for a license with the organization before launching their services to consumers. We recommend that you access the latest news on crypto regulations to learn more.
Trading The Graph comes with a few more risks than several of the leading cryptocurrencies, especially owing to its smaller market capitalization and lower levels of liquidity. In addition to this, its use cases are still in development and it has yet to gain traction among crypto investors and traders. As a result, it could present more risks than some of the more established players in this space. However, it also has the potential to offer more opportunities for rewards once it takes off.