It is usually very difficult for different blockchains to share data with each other. So, if you are working on a DeFi project and need data from, say, Ethereum, Filecoin or IPFS, you would have to manually interact with those platforms.
But what if there was a way to access all these data from one location instead of visiting each individually? Wouldn't that be less soul-sucking?
That is where The Graph comes in. The Graph is a boon to the decentralized world as it helps developers build various APIs (Application Programming Interfaces) that makes it easier for them to access information from multiple platforms under one roof.
This way, developers can work on their own blockchain projects faster since they will be able to retrieve and use crucial data in a few clicks.
But what exactly is The Graph, and how does it work? What is its current value? Will the value rise? Is it a good investment?
We answer these questions and many money in this definitive guide, so make sure to read to the end.
Contents:
The Graph Price Prediction in 2022 and 2023
The Graph Price Predictions in 2024 and 2025
The Graph Price Predictions in 2026 and Beyond
The Future of The Graph: Will the Value of GRT Rise?
Conclusion: Is The Graph a Good Investment?
What Is The Graph (GRT)?
The Graph is an open-source software that enables information to be shared easily throughout the decentralized ecosystem. The project was originally launched on Ethereum but launched its own mainnet in 2020, which means it now operates on its own blockchain.
The Graph aims to be a hub for decentralized applications (dApps). It helps developers find the relevant data they need from different chains and use it in their Dapp. This way, they will be able to improve the efficiency of their applications without contacting multiple blockchains to retrieve data.
Apart from that, the project focuses on building a community of people who'll help build a knowledge base that can be used by other developers.
This is an essential concept since blockchain interoperability and other things like finality and chain reorganization can be a nightmare to achieve.
However, with The Graph, you can conveniently search decentralized data storage platforms like Filecoin and immediately get the data you need.
Already, a number of cryptocurrency projects are using The Graph's technology to streamline data retrieval. These include Uniswap, Decentraland, AAVE, Balancer and many more.
The advantage of using The Graph's API is that it reduces the need for calling functions to retrieve data from multiple chains even if they are not compatible with each other. It also provides developers with a variety of ways to access data from these Dapps.
The Graph was founded in 2018 by Yaniv Tal, Jannis Pohlmann and Brandon Ramirez. It has already attracted the attention of many data-hungry developers around the world.
By April 2021, the platform was boasting of over 20 billion monthly queries, which was about 20x growth from June 2020's 1 billion monthly queries.
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How Does The Graph Work?
The Graph is made up of 4 components that co-exist to increase its efficiency. These are Indexers, Curators, Delegators and Developers/Consumers.
- Indexers: These are nodes that are staked with GRT to process queries. They also receive a percentage of the query fee when they serve data
- Curators: Curators decide what gets indexed, and they get paid proportionately for their services.
- Delegators: Delegators delegate GRT to a specific indexer, and they receive a percentage of that indexer's income
- Developers/Consumers: This is the target user base for which The Graph positions itself as a facilitator of knowledge.
The Graph works the same way Google indexes the web. A user will enter a search query into Google's search bar and receive the information they need immediately. It is the same way with The Graph.
A developer submits a query to an indexer who will help them retrieve the data they need.
Now, to keep things in order, The Graph groups its data into what is known as subgraphs. These are basically open APIs that developers can query without any restriction.
There are currently over 2,300 subgraphs that have been deployed by more than 3,000 developers. The Graph also reports that they have more than 200 indexers who are helping to grow the incentivized testnet.
All queries are sent to The Graph through GraphQL, an API that was originally created by Facebook and widely used as a data bridge between different applications.
To ensure the integrity of data and smooth operations on The Graph network, all participants (Curators, indexers, delegators and consumers) are required to stake a certain amount of GRT (The Graph's native token).
For instance, indexers are required to stake a minimum of 100K GRT in order to be entrusted with data retrieval.
What Is GRT?
GRT is the cryptocurrency used to power The Graph's ecosystem. All transactions on this platform are transacted using GRT, a token that has a total supply of 10 billion and a current price of about $1.
In addition to running as a payment currency, GRT also acts as an incentive mechanism for curators, indexers and delegators. GRT is an Ethereum-based ERC-20 token and is currently traded on several exchanges, including Binance, Coinbase, eToro, Bitpand, KuCoin and OKEx.
There are currently a total of 10 billion GRT with about 3% added annually. %1 of the query fees is also burned each year to keep the supply in check.
Check Out: The 5 Best Ways To Buy The Graph (GRT)
The Graph Price History
The Graph had one of the most interesting beginnings in the crypto market. Just three days after it started trading, its market cap shot to over $1 billion. This was mostly due to the hype that surrounded its release.
In fact, according to Santiment, the crypto behaviour analytics platform GRT was trending on social media more than Elon Musk.
So, this early hype helped push the asset’s value up quickly and position GRT on the radar of several investors. But is as the case with most price pumps, GRT soon faced a correction despite its decent tokenomics and solid fundamentals.
The earliest known price recorded by CoinMarketCap is around $0.14 in mid-December 2020. By the end of that December, this price had gone up to $0.75 as GRT began to carve out a niche for itself in the crypto market.
However, before it joined the market-wide bull run that kicked off in early 2021, The Graph dropped to as low as $0.2 in mid-January 2021. But this slump didn’t take long. In fact, it was merely a preparation for one of GRT’s biggest price rallies.
This rally began towards the end of January; specifically around January 26th where GRT was trading at $0.51. By February 9th, this had gone up to $0.98.
Now, this is where GRT’s biggest price jumps happened.
Between February 9th and February 12th, 2021. The Graph shot from $0.98 to attain its current all-time high price of $2.88. That means that in just three days, GRT gained about 193.9%.
That’s pretty impressive!
During this time, the market cap also shot from around $1.38 billion to a staggering $3.4 billion.
But the glory didn’t last long. About two days later, that is February 14th, GRT had lost -35% after dropping down to $1.9 per coin. And that was not the end.
The days that followed were clouded by wild price swings that saw several investors dropping out. This caused the price of the token to drop even further, and by the end of February 2021, it was down to $1.45.
There was a slight recovery to above $2 in early March. This went on until March 10th, when The Graph began dipping again. This time, the descent was steeper, and by around March 24th, GRT was trading at $1.3.
The coin managed to rebound again and recorded an uptrend that took it to $2.2 per coin in mid-April. Unfortunately, that has been GRT’s highest price for the last six months.
From there, the coin went on a steep plummet that saw it bottoming out at $1.2 towards the end of April.
For the first half of May, GRT traded between $1 and $1.7, then suddenly dropped to $0.76 on May 19th. The bearish tendency continued, and by May 23rd, the coin was down to $0.57. This was followed by unstable price swings that saw GRT mostly fluctuating between $0.5 and $1 in June and July.
There was a small rise in August that took The Graph back to $1, and until November it fluctuated between $0.7 and $1.2. December saw the crypto market turn bearish and GRT prices also dropped. At the time of writing, GRT was trading at $0.40 with a market cap of almost $2 billion. This makes it the 55th biggest cryptocurrency by market cap, with a market dominance of about 0.11%.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Graph Price Prediction In 2022 And 2023
The Graph has big aspirations of changing the world of decentralized data retrieval. With that in mind, it's understandable to want to get a better picture of what is likely to happen with this cryptocurrency over the next few years.
The Graph is currently trading at $0.40 per token, and it's hard to determine exactly how much upside there might be in this cryptocurrency.
However, some people are forecasting a big jump upwards of approximately 100% by mid-2022. There is also a possibility that The Graph experiences a large pump in price during 2022 and 2023 due to increased attention from developers and investors.
As usual, the forecasts indicate a lot of volatility, with some experts predicting an uptrend while others think the coin might tank.
Wallet Investor is of the those than believe The Graph might go on a landslide in 2022 and 2023. According to the site, GRT will start off 2022 at a higher price than the one at the year of the year. It will drop steadily throughout 2022 and close the year at as low as $0.12.
We can’t say what might cause this kind of drop, and we can’t also say that it will happen. There is the possibility that the price will drop in 2022, but given the volatility and unpredictable nature of GRT, we might also see a really steep ascent.
The same goes for 2023. Wallet Investor is still adamant that the coin will keep dropping. It will pick up at around $0.11, where it left in 2022, and go only as high as $0.15 by the end of 2023. This is a bit worrying, considering that Wallet Investor is usually on the optimistic side when it comes to price predictions.
What is even more worrying is the fact that Gov.capital seem to agree with this trend. The crypto price tracker stops its predictions for the coin in May 2022 when they expect GRT to go as low as $0.15 before dropping to 0.
But not everyone thinks that GRT will be treated to a downside in 2022 and 2023. There are some positive predictions that suggest the coin could be preparing for an upside.
For instance, Coin Price Forecast predicts that GRT will end 2022 at $0.60 and 2023 at $0.89. Of course, that is not exciting; it is still lower than the asset’s all-time high. But it is a good sign.
Long Forecast gives an even better sign. The crypto price analyst believes that the Graph coin will record an uptrend in 2022 and 2023. LF predicts that GRT might start end 2022 at $0.14. There will be some fluctuations in between, with the price going to as high as $0.17 in June.
Long Forecast gives mixed signals for 2023. The Graph coin will keep rising and hit $0.20 in March, but then it will start rising to close the year at $0.26. That is not exactly bad, there could still be some hope for the coin.
The Graph Price Predictions In 2024 And 2025
While it's difficult to see what factors will influence the value of GRT in 2024 or 2025, several experts have taken a decent stab at forecasting The Graph prices just to paint a picture of what we should expect.
And from what we are seeing, it looks like there is going to be a fair share of volatility.
Wallet Investor continues with its downtrend trajectory in 2024. It predicts that the Graph price might start the year at around $0.149, and by April, it will dip down to $0.111 per coin.
There will be some fluctuations with the coin recovering slightly in May and June, but mostly the predictions are pretty dismal. By the end of the year, GRT might be back to below $0.1.
Wallet Investor carries the same pessimism to 2025, where it predicts that GRT will mostly trade between $0.03 and $0.1. So, based on this, The Graph might just have its worst year in 2025.
As usual, Long Forecast brings a fresh breath of hope with its fairly bullish predictions. The site starts off 2024 at $2.13, which quickly rises to over $0.21 by April. The highest price for the year might be $0.33 in November.
There will then be some unstable movement before GRT closes the year at $0.32.
2025 might not be as promising, according to Long Forecast. While GRT might attain a high price of $0.18 towards the end of the year.
From these, we can see that there is a good possibility of GRT going to $0.3 or $0.5 in 2025. If the market is good enough or there is a bullish catalyst, we might even see bigger numbers.
The Graph Price Predictions In 2026 And Beyond
Several price analysts, such as Long Forecast, don’t go as far as 2026. However, we have a good number of predictions, including those of Wallet Investor, which is still pretty bearish about the future of The Graph.
According to Wallet Investor, The Graph GRT will start 2026 at around $0.094 then drop throughout the year. By the end of 2026, it will be down to $0.022. Coin Price Forecast, on the other hand, predicts a positive trend, with GRT hitting $1.48 in mid-2026. It might, however, slightly increase, and by the end of the year, it will be trading at $1.49.
The site also predicts that The Graph will finally cross $1.6 in 2028, where it will be worth around $1.45 when the year signs out. This will go up to $1.63 in 2029, rise to $1.81 in 2030 and finally, in 2033, GRT will drop to $1.71.
As you can see, these predictions are pretty mixed, and it’s easy to get confused. However, understand that cryptocurrencies are highly volatile, which makes it hard to predict them.
The price might go higher or lower than the predictions we see here. That is why we advise that you take these predictions with a grain of salt. Make sure to do your own research and consult someone who has experience in this before making a decision to invest.
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The Future Of The Graph: Will The Value Of GRT Rise?
There needs to be a concrete use-case and real-life application for a project to succeed in the long term, especially when it comes down to a decentralized network that runs on a cryptocurrency.
According to the roadmap provided by The Graph team, they are currently working on building their long-term strategic partnerships with different blockchain projects.
Once this happens, then we can begin to see a real-life implementation of The Graph into other platforms. This would be the only way it could thrive in the long run.
Already, The Graph has partnered with several blockchain projects that will help push its value in the long run. With the recent launch of the mainnet, more projects are expected to join and take advantage of its data retrieval technology.
Uniswap already uses The Graph to collect data, so does Decentraland and many other platforms that heavily rely on blockchain data. Furthermore, there is a high chance that other decentralized apps will also start using the platform soon enough. If this happens, it would mean more usage and adoption, which could potentially drive the value of GRT higher.
Having said that, we must also take into account the fact that The Graph is fairly new and trying to fit in. There are still lingering questions regarding its use cases and how it intends to get more parties on board.
However, if you look at the performance of its development team, it seems that the latter is up to something. The speed at which they are developing the platform is amazing.
So, will GRT rise in value? We believe so. The Graph has a lot of potentials and can be successful if it starts gaining more adoption. It's still early days for the project, so let's wait and see what the future holds for it.
Read Also: Will The Graph Make Me Rich In 10 Years?
Conclusion: Is The Graph A Good Investment?
Now that you know more about The Graph and its future potential, is it a good investment?
Our verdict: we see some good upside in buying GRT while it's cheap at $1. Whether there will be an increase in the value of GRT or not, only time will tell. However, if you believe in the project, now might be the time to invest in it.
On a final note, we would like to point out that not all cryptocurrencies can be winners, and overall market conditions will play a more significant role in the short-term price movements of GRT compared to its value as a blockchain project.
As a result, you will want to make sure that you do some research before making the decision to buy GRT. You can start by reading up on the coin's fundamental analysis to better understand what makes a good cryptocurrency investment and how you can use this knowledge to your advantage.
One thing is certain: The Graph has all it takes to be a successful long-term project. We will just have to wait and see if it will be able to gain more adoption and real-life application.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.