Key Takeaways

• The Graph’s switch to the Arbitrum protocol has given the GRT token a boost.
• The platform is designed to help people access blockchain data and make charts based on it. 
• Can GRT maintain its recent momentum? 

The Graph, a blockchain platform that helps people create their own graphs, had a pretty busy few months between April and June 2023. 

The platform got back in the headlines after the news that the system was to move from Ethereum (ETH) to the Arbitrum (ARB) protocol. 

More people used The Graph over the course of the quarter and the GRT crypto, which had been hit by the market slump following the news that the United States Securities and Exchange Commission was to sue the Binance and Coinbase exchanges, enjoyed something of a revival. 

Nevertheless, the crypto’s investors should be mindful of the disastrous time it had in 2022, when it lost more than 90% of its value. 

But what is The Graph (GRT)? How does The Graph work? Let’s see what we can find out, and also take a look at some of The Graph Price Predictions that were being made as of July 31 2023.

From the Whitepaper

In its technical documentation, or whitepaper, The Graph says that it is built to help people answer any queries they might have about any system based on Ethereum.

It says: “The Graph is a decentralized protocol for indexing and querying blockchain data. The Graph makes it possible to query data that is difficult to query directly.”

It goes on to say: “The Graph learns what and how to index Ethereum data based on subgraph descriptions, known as the subgraph manifest. The subgraph description defines the smart contracts of interest for a subgraph, the events in those contracts to pay attention to, and how to map event data to data that The Graph will store in its database.”

Advantages and Disadvantages of The Graph 

Blockchain analytics company Messari recently released its quarterly report on The Graph . It outlined some key advantages and disadvantages of the blockchain.

It found that, in the second quarter of 2023, The Graph had

• Made $46,577 in usage fees, down from $70,439 year-on-year and from $88,872 quarter-on-quarter.
• Had revenue from index rewards of a little over $9 million, down year-on-year from $17.2 million but up quarter-on-quarter from  $8.8 million.
• 1,082 published subgraphs, up from 392 year-on-year and 776 quarter-on-quarter.
• 328 active computers, or nodes, on the network, up from 166 year-on-year but down from 408 quarter-on-quarter.

Advantages of The Graph

Messari said that The Graph

• Worked on its move to Arbitrum well.
• Helped remove barriers to Web3 for developers.
• Should see the number of subgraphs continue to grow.

Disadvantages of The Graph

Messari also said that The Graph had

• Seen a substantial fall in revenue across the quarter.
• A high entry fee for people who wanted to operate nodes on the network.
• 325 inactive nodes, almost as many as there were active ones.

With Messari’s report being broadly positive about The Graph, what does this mean about the GRT price prediction?

First, though, let’s talk about what The Graph actually is.

The Graph (GRT) Explained

If someone wants to make the most of blockchain technology, it is helpful if they can access the data that is stored on the system. Unfortunately, many systems are designed in a way that makes it tricky, if not impossible, to find the information that should be out there.

The Graph , which was founded in 2018 by computer engineers and crypto entrepreneurs Yaniv Tal, Brandon Ramirez and Jannis Pohlmann, and is built to allow people to create their own data charts, based on information that the system takes and indexes. 

The Graph, which was based on the Ethereum (ETH) blockchain before being taken up a level to stand on Arbitrum, is supported by its eponymous token, which goes by the ticker handle GRT.

How The Graph Works

The Graph uses a piece of technology called an application programming interface (API). This software allows people to take the data that the platform has indexed and create small subgraphs, which are then collected to form larger graphs.

A lot of the subgraphs on the system were created by The Graph’s users. This helps the platform to be decentralized and also, theoretically, quicker than relying on the traditional method of using specialized servers. This new way of doing things should also, according to The Graph’s technical documentation, save “engineering and hardware resources”.

There are three types of users on The Graph. Indexers store data from the platform’s subgraphs and are responsible for operating the computers, or nodes, that help run the network. In order to do that, they stake GRT. Delegators delegate an amount of GRT to Indexers. Curators list the data that they consider worth indexing.

People who create the subgraphs are rewarded with GRT.  The token can also be bought, sold, and traded on exchanges.

Because GRT is based on Ethereum, it is a token, rather than a coin. You might see references to such things as a Graph coin price prediction but these are not entirely correct. 

GRT Price History

Let’s now take a look at some of The Graph’s price history . While past performance should never be taken as an indicator of future results, knowing what the token has done can help give us some very useful context when it comes to either making or interpreting a Graph price prediction. 

When GRT first came onto the open market in late 2020, it was worth about $0.12. It shot up as crypto entered a bullish phase and it reached an all-time high of $2.88 on February 21 2021. It then entered a gradual decline, falling below the dollar in late May and closing the year at $0.6446.

In 2022, GRT suffered as the market went through a series of crashes. It fell below $0.50 in the middle of January. Although March and April saw something of a resurgence, the token suffered throughout the rest of the year and it closed it at $0.055375, an annual loss of more than 90%.

In 2023, links between The Graph and artificial intelligence-related tokens such as SingularityNET (AGIX) saw it shoot up, peaking at $0.2284 on February 7. After this, it was downhill, with a low coming on June 10. In the wake of Crypto.com announcing the suspension of its US institutional operations, it was worth $0.09046. 

Since then, the price has gone up, boosted by the completion of the Arbitrum switch and, on July 3, it reached a high of $0.1431.

In the weeks after that, GRT dropped somewhat and, on July 31, it was trading at about $0.11.

At that time, there were 9.1 billion GRT in circulation out of a total supply of 10.7 billion. This gave the token a market cap of just over $1 billion, making it the 44th largest crypto by that measurement. 

The Graph Price Analysis

Although The Graph has avoided being named as an unregistered security by the SEC, it has still had something of an up and down time over the two months or so. On 5 June, before the regulator announced its legal cases, it was worth $0.1252, which meant it lost more than 25% of its value in five days.

After that, it made a recovery of nearly 60% by July 3. Over the course of the month, though, it dropped nearly 25%. Perhaps more worryingly, it is now down nearly 12.5% since before June’s crash. 

The Graph Price Prediction 

With that all out of the way, let’s take a look at some of the Graph price predictions that were being made as of 3 July 2023. It is important to remember that price forecasts, especially for something as potentially volatile as crypto, very often end up being wrong. Also, keep in mind that many longer-term crypto price predictions are made using an algorithm, which means that they can change at a moment’s notice. 

First, CoinCodex  had a short-term Graph price prediction that said it would drop to $0.1024 by August 5 before climbing to $0.1215 by August 30. The site’s technical analysis was bearish, with 24 indicators sending negative signals and just three making bullish ones. 

The Graph Forecast for 2023

In terms of other Graph price predictions for 2023, Bitnation  had the token worth $0.1640. DigitalCoinPrice  was more optimistic, saying it would reach $0.22. by December. PricePrediction.net  was more cautious, suggesting it would trade at $0.13 by the end of this year. 

The Graph Forecast for 2025

When it came to making a Graph price prediction for 2025, DigitalCoinPrice argued for it to reach $0.36, but PricePrediction.net thought GRT would only get to $0.27. Bitnation was, however, more upbeat, forecasting the token to reach $0.3849.

The Graph Forecast for 2030

Moving on to a more long-term Graph price prediction for 2030, PricePrediction.net thought the token could hit $1.60 that year, while DigitalCoinPrice said it would reach $1.13. Bitnation had a GRT price prediction for $0.9349 at the start of the next decade.

Is The Graph a Good Investment?

It is hard to say. No one is suggesting GRT is an unregistered security right now, which is a good thing for the token. Its links to the now-fashionable artificial intelligence sector could well put it at the forefront of investors’ minds. Its recent move to the Arbitrum protocol should, at least in theory, make it quicker. 

Something else worth pointing out, though,  is that The Graph does not make it easy for someone who is not a computing expert to get to grips with.

The site’s technical documentation is filled with jargon, even by the standards of whitepapers. It would not be a huge surprise for an investor to decide to put their money where they can actually understand the system’s purpose. 

As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in GRT.

Will The Graph go up or down?

No one can really tell right now. While The Graph crypto price predictions are largely positive, price predictions have a well-earned reputation for being wrong. Keep in mind, too, that prices can, and do, go down as well as up. 

Should I invest in The Graph?

Before you decide whether or not to invest in The Graph, you will have to do your own research, not only on GRT, but on other, related, coins and tokens such as SingularityNet or Ocean Protocol (OCEAN). Either way, you will also need to make sure that you never invest more money than you can afford to lose.

FAQs 

How many The Graph are there?

On July 31 2023, there were $9.1 billion GRT in circulation out of a total supply of 10.7 billion. 

Will The Graph reach $1?

It could do, but it won’t happen for a while. PricePrediction.net says it will happen in 2029, while DigitalCoinPrice says it will reach the dollar in 2030. Bitnation says it will happen in 2031.

It is important to remember that GRT has not traded above the dollar since November 2021.

What is The Graph used for?

People who create subgraphs on The Graph blockchain data platform are rewarded with the GRT crypto. GRT can also be bought, sold, and traded on exchanges. 

Disclaimer 

Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.