The Graph price has crawled back in the past few weeks as investors have bought the dips. GRT is trading at $0.4780, about 40% above the highest level this year. However, the price is about 83% below its all-time high, bringing its total market capitalization to more than $2.9 billion, making it the 50th biggest cryptocurrency globally.
To understand what The Graph is, it is important to understand how the blockchain industry works. Most blockchain projects are built using open-source technology, meaning that any developer can contribute.
Because of their size, the biggest networks have millions of lines of code. Therefore, developers often find it difficult to search the code on their platforms.
This is where The Graph comes in. The network uses subgraphs that help developers query data inside these codes. It also helps solve the vital challenge of custom servers, which are often expensive to set up.
At its core, The Graph offers three key services. First, it has a Graph Explorer where you can explore the different subgraphs. Second, it has a Subgraph Studio that enables developers to create, manage, and publish subgraphs using APIs. Finally, it has a hosted service that enables developers to create and explore subgraphs on the hosted service.
The Graph was started in 2019, and its mainnet went live in 2020. To help its development, the team raised $69 million from a group of investors like the Digital Currency Group and Tally Capital.
What is GRT crypto?
GRT is the native token for The Graph network. Since The Graph is a proof-of-stake network, it uses validators and delegators. These participants are rewarded using the GRT token. Investors can earn money by investing in GRT and seeing its price rise. After buying the coin, they will earn rewards through what is known as staking.
Latest The Graph news
The Graph has not made headlines this year. But, first, the developers announced the launch of Graph Advocates. This community-led and driven program serves as a portal into Web3. People who will be accepted into the program will make direct changes and recommendations about how to grow the industry.
Another Graph news is that the developers allocated $1.72 million in Wave 4 grants. These funds will go towards improving the ecosystem by funding potential developers. The grant was announced a few days after the developer secured a $50 million investment by selling GRT to investors.
GRT price history
The Graph price has generated mixed returns for its investors. For example, in the first, second quarter of 2021, the coin’s price jumped from a low of $0.2277 to a high of $2.886. That was a 1,174% gain. However, after peaking in February 2021, the coin has had mediocre returns and is currently 83% below its all-time high. This performance is likely because Average investors often misunderstand the Graph.
Who uses The Graph?
Developers widely use the Graph in the blockchain community. This includes people building decentralized finance (DEFI), non-fungible tokens (NFT), and lending applications. Today, The Graph supports all the leading blockchain networks like Ethereum, Fantom, Arbitrum, Fuse, and Binance Smart Chain.
Some of the biggest ecosystems using The Graph are Uniswap, Synthetix, Decentraland, Arweave, and Aragon.
Is The Graph a good investment?
From a fundamental perspective, The Graph’s network has done relatively well. Besides, this is a platform that has been around for less than two years. In 2021, the network experienced strong growth as the number of delegators increased to 7,400, and indexers soared to 160. The number of search queries also increased.
A good thing about The Graph is that it has minimal competition and is in a pole position to dominate the sector. Another benefit is that it will become more valuable as the blockchain industry grows. Therefore, in this regard, The Graph seems like a good investment.
However, the main challenge for GRT is that it is an enterprise-focused blockchain platform that ordinary people don’t understand.
Who owns The Graph?
A team of Silicon Valley developers started the Graph. The core team that built The Graph were Tegan Kline and Yaniv Tal. The two started a company known as Edge & Node that creates and supports protocols and dApps. Today, The Graph is owned by The Graph Foundation. Its investors are Framework, DTC Capital, 122 West, and Multicoin.
The Graph price prediction 2022
To estimate where GRT price will end the year, we will conduct a technical analysis using the daily chart. We see that the coin’s price has been under pressure lately on the chart below. The sell-off accelerated when the price moved below the support at $0.4751, the lowest level in 2021.
Now, The Graph price has retested this level in what is known as a break and retest formation. The break and retest pattern is usually a bearish sign. At the same time, the coin has moved below the 50-day and 100-day moving averages. It has also formed an inverted cup and handle pattern that is usually a bearish sign.
Therefore, there is a likelihood that the coin’s price will keep falling this year. If this happens, it will initially drop below its all-time low of $0.2250 and then head to $0.1686. This view will be invalidated if the coin’s price rises above $0.7800.
The Graph price forecast 2025
So, will The Graph price be up or down by 2025? Unfortunately, it is difficult to predict where the GRT price will be by 2025. Nonetheless, we can make some assumptions to make this forecast. First, most analysts expect that the blockchain industry will continue doing well in the coming years. For example, the stock-to-flow model predicts that BTC will be trading at more than $100,000 by 2025.
Second, we can also assume that the correlation between Bitcoin and other altcoins will hold steady. Most importantly, it is okay to assume that the coin’s price will have retested its all-time high. Therefore, at a minimum, there is a likelihood that The Graph price will be at about $3 by 2025.
Summary: where to buy The Graph
The Graph is offered by several centralized and decentralized exchanges like Coinbase, Binance, and Kraken. You can also buy the coin in one of the many decentralized exchanges.