Why Is The Graph (GRT) So Cheap?

Last Updated February 3rd 2022

8 Min Read

Why is The Graph token so cheap today? Can we expect its price to rise, and should you be buying GRT tokens?

The Graph token’s depressingly low price is a function of numerous factors, but crypto experts and analysts have narrowed this to the fact GRT is still new, the fact that it is limited to the Ethereum blockchain, and that the crypto market has been rather shaky. They argue that GRT token prices are largely influenced by the crypto market’s performance and adoption rates, so when the two are shaky, the altcoin prices tank.

The cheap price shouldn’t, however, be mistaken to mean low value given that the coin is already 33X above its ICO price, down from 96X hit during its peak price in February 2021. Additionally, GRT has already escaped oblivion as a little-known ERC-20 token to a top 55 cryptocurrency with a live market cap of $1.9 Billion - according to data from CoinMarketCap.

GRT’s low price should also not be taken to imply a low potential for growth because some forecasts expect its value to rise by more than 5000% by the turn of the decade.

For instance, technical analysts at CryptocurrencyPricePrediction expect The Graph token prices to rise by more than 5650% in the next 8 years and hit $23 by December 2030.

In this post, we will be exploring the causes of GRT’s cheap token prices in detail, telling you if and when it is expected to start rising again and whether you should buy some GRT while they are still cheap.

First, though, we need to understand its price history and how it got to trade at these low prices by analyzing its past price action.

The Graph Price (GRT) History 2020 To 2022

The Graph token has been in development since 2017 and was sold to different entities before it was eventually availed to the public through ICO at $0.03 per token in October 2020. It started trading in the open markets on 17th December 2020 and ended its first day of trading, selling for $0.12.

Inspired by the wild crypto market rally in early 2021, The Graph token prices burst into a run in mid-January that culminated with a price record of $2.88 on 12th February, according to data from CoinMarketCap. It would then trade around this price throughout March and April.

However, the crypto market crashed in mid-May, and so did GRT token prices. But it was the introduction of close to 3 billion GRT tokens to the market in June and July that broke the altcoin’s uptrend and sent its prices crashing below $0.5 in the third week of July 2021.

We are now in the last quarter of 2021, and The Graph has tried to cash in on the Bitcoin-induced market rally that saw most altcoins set their new price records in September and October. But the rally could only help it get to $1.3. The market has since crashed, also affecting GRT's price and the coin has been trading around the $0.5 mark.

So why is The Graph this cheap? Why has it not recovered and lived up to the early 2021 price predictions that said it could get to $5 by the end year and set sight for $10 in 2023?

Let us explain.

Check Out: What Is The Graph? Should You Invest In GRT And Where To Buy It?

Why Is The Graph (GRT) So Cheap?

For starters, The Graph is cheap because it still is a relatively new altcoin. Therefore, there is a lot of scepticism about its future performance, and its not-so-impressive past price action hasn’t helped draw in speculative investors who are critical to shaping a new coins price action/direction.

Crypto experts at Coinpedia have been particularly vocal in attributing the ERC-20 token’s low price to the fact that it is a relatively new altcoin. They add that in 2022 GRT will most likely continue trading around or below $0.5 if its price remains this volatile.

You could also be right if you said that GRT tokens are cheap because of their relatively high maximum token supply and their not-so-well-thought distribution strategy. We say this because GRT’s token price was on an uptrend until their value was diluted by the introduction of 3X more tokens. The dumping of more tokens is expected to continue through to 2025, and with each batch of previously locked pre-ICO altcoins that hits the market, you can expect more dilution of GRT token prices.

The Graph is also cheap because its Indexing protocol is underexploited. While there are tens of Ethereum applications using the protocol, The Graph is yet to establish dominance on the network. Neither has it been able to branch out to such other blockchains as Bitcoin - a move that would make it popular and expand its use case, which in turn increases the demand for GRT tokens and, ultimately, their price.

Like all other cryptocurrencies, The Graph token's price action is hugely correlated to the overall crypto market performance. When the market is uptrending - as it were in early 2021 and around September - GRT token prices rose. At the moment, the market is shaky, and this explains why The Graph has been unable to escape the ‘cheap’ price tag.

Should I Buy The Graph (GRT) While It Is Cheap?

Yes, you may consider investing in The Graph because it has massive potential to grow its value and extend the reach of its indexing protocol throughout the crypto-verse. This translates to an equally massive potential growth for your GRT token investments.

Virtually every crypto price prediction metric available out there indicates that GRT token prices will eventually reach $10. A few investors on such social media platforms as Twitter and Reddit can also be heard debating for the case of GRT eventually breaking above $100 in the long run.

Now, to understand why GRT is worth buying at its current cheap price, let us look at what you stand to make if this ERC-20 token were to hit these target prices.

We will start by assuming that you just bought $1K worth of GRT tokens. If you HODL these virtual assets and their per-token price reaches $10, you will have grown your investment by 4000% to reach $40,000. If you continue HODLing and it eventually reaches $100, you will have grown your investment by 40000% to reach $400,000.

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Is The Graph (GRT) Worth Buying?

Yes, the fact The Graph’s indexing protocol is set to launch on other blockchains and that it has the backing of some of the biggest names in the crypto-verse - including Coinbase - says that GRT token is a good long term buy. Some crypto analysts, like ‘GUY’ from CoinBureau - are even convinced that The Graph token prices will especially blow when it comes up with an indexing protocol for NFTs and dApps - two niches that everyone agrees will be the next big thing in the crypto space.

You will also be convinced that The Graph is worth buying if you go through the different crypto expert and technical analyst views of GRT’s future price action.

Technical analysts from ICOCreed, for instance, are convinced the altcoin prices will continue rising for the next few years and that they will possibly reach $5 in 2026, break above $10 in 2027 and end the year 2030 selling for $30.

Technical analysts at PricePrediction.Net are also convinced that GRT token prices will continue rising for the next few years. It indicates that The Graph token prices will continue rising in the foreseeable future and that it could reach $5 before 2026, get to $10 in 2028, and end the year 2030 selling for $31.

Yet another technical analysis of The Graph price action by CryptocurrencyPricePrediction has one of the most optimistic views of GRT’s future. It indicates that the altcoin will continue rising to reach $5 by February 2025 and rise further, possibly breaking above $23 in December 2030.

The Reddit community is equally bullish on The Graph’s future price action. The general feeling is within that space is that GRT token price will rise and eventually break above $100.

Don't Miss: Will The Graph (GRT) Make Me Rich?

Will The Graph (GRT) Prices Rise Again?

Yes, the general feeling within the crypto community is that The Graph token prices will rebound, resume their early 2021 price rally, and rise above $2.88. The majority of forecasters are convinced that this rebound will take place within the next few years, but a handful of optimists are confident that it can get back to this peak price level before December 2022.

Crypto experts at Economy Watch, for instance, are confident that The Graph will rebound and rise above its current all-time high by reaching $3 in 2025. They then argue that much of this rebound will be made possible by the increased use case of The Graph’s indexing protocol which will, in turn, be driven by the dApp explosion.

Technical analysts at CoinsKid are a tad more optimistic of the altcoin’s future price action and are confident that it will rebound and rise above its current all-time high in January 2023 when it reaches $3.08.

Conclusion: Why Is The Graph (GRT) So Cheap?

The Graph is cheap today because it is a relatively new altcoin whose potential is yet to be fully exploited. Its underlying indexing protocol is massively underutilized as it is yet to be fully adopted on Ethereum or branch out to other blockchains. This has, in effect, translated to minimal demand for the GRT tokens and hence its perennially low prices. There nevertheless is a lot of optimism about the altcoin's future performance. The market agrees that it will rebound and rise above the current all-time high in the next 5 years and continue rising to reach the highs of $23 by 2030.