The Graph price prediction: What next for the Web3 token?
Is GRT a good buy? What will happen to The Graph in the future? Let’s take a look…
- Founders of The Graph
- What is The Graph (GRT)? Overview
- From The Graph whitepaper
- The Graph: Recent performance
- The Graph coin price prediction: Algorithmic forecasts
- Final thoughts
A host of crypto companies have emerged, all battling it out in a bid to become prominent players within the blockchain-based internet of the future, also known as Web3.
The Graph – a start-up founded in spring 2018 as a protocol for indexing and querying blockchain data using open-source APIs – describes itself as “the Google of the blockchain world”.
Despite a general decline in the GRT coin price since its post-launch highs in spring 2021, in early 2022 a successful funding round led by Tiger Management Global raised $50m in fresh capital to further operations.
Further recent developments for the Web3 protocol include an announcement that the project completed the migration of subgraphs to The Graph’s mainnet on 8 March 2022. The Graph website explains that a subgraph defines which data The Graph will index from Ethereum, and how it will store it. Within a week, GRT witnessed a huge increase in the rate of the Ethereum subgraph migration, and trading volume increased by more than 100%.
A new core dev team contributing to The Graph is implementing substreams, a way to make indexing performance 100 times faster. According to the website: “StreamingFast, the first additional team to join as a Core Dev after Edge & Node, brings both an incredible pool of talent and powerful technology to further the protocol. One of the most exciting innovations is coming to fruition soon: Substreams.”
However, with a crypto winter looming large over the markets, The Graph will need to stay ahead of the competition as the Web3 space matures. So what is the latest The Graph price prediction? Before looking into GRT price predictions, let’s quickly do a recap.
Founders of The Graph
Jannis Pohlmann, after completing an MSc from the University of Lübeck, worked as a software developer in the UK and Germany. In April 2018, Pohlmann co-founded The Graph in California’s Bay Area. He is currently the tech lead.
Yanniv Tal, based in San Francisco, is the project lead at Graph Protocol. Tal completed a BSc in mathematics from Westminster College, and went on to study electrical engineering at the University of California. After graduating, Tal worked as a software engineer for HP and MuleSoft. In February 2013, he founded TapSavvy, a start-up which brings mobile payments to restaurants. In 2016, Tal founded Workflo, a start-up that helps to build user interfaces (UIs) more quickly.
Brandon Ramirez studied electrical engineering at University of California. He previously worked as a software engineer for a variety of companies, including Workflo Inc and Functional Foundry.
The original founding team are all now involved in the launch of Edge & Node, a computer software company based in San Francisco.
What is The Graph (GRT)? Overview
The Graph acts as an indexing protocol for querying data for networks, such as Ethereum, IPFS and DAO. The project powers a variety of applications in the crypto space.
Users can build and publish open application programming interfaces (APIs), also called subgraphs. APIs, in their simplest terms, refer to a workflow process that is automated rather than manual. Subgraphs are open APIs. This means the data is open to other developers to use in their applications.
According to the website, this open “data can be transformed, organised and shared across applications, for anyone to query with just a few keystrokes”.
Before The Graph, according to the website, “Developers had to spin up centralised servers and databases in-house in order to index and query blockchain data”. This old centralised process, however, was more prone to risk and more time-consuming compared with The Graph’s technology, in which “applications only need to reference an API endpoint for a subgraph to begin querying data”.
Subgraphs can be composed into a global graph of all the public information. This data can be transformed, organised and shared across applications, enabling users to make a search using GRT tokens.
The GRT coin is locked up by what are called delegators and indexes on the platform, in order to provide services to the network.
From The Graph whitepaper
The Graph’s whitepaper states: “A large amount of data resides in silos that are centrally controlled by a handful of corporations. Web-era apps like Google, Facebook, YouTube, LinkedIn and Salesforce are built on these data monopolies. This centralisation puts tremendous power into the hands of a few and reduces economic opportunity and self-determination for many. Decentralised applications (dApps) put users in control of their data.”
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The document goes on to explain: “dApps are built using data that is either owned and managed by the community, or is private and controlled by the user. This way, many products and services can be built on pluggable datasets and users can freely switch between dApps.
“We believe that this will create wide-scale economic opportunity, as more products are able to compete in a fair and open market and mechanisms are put in place to incentivise people to contribute to a larger and farther-reaching public commons.”
While the project’s offering is interesting, how does that affect The Graph price predictions? Before answering that, let’s first look at the recent performance of the Graph coin…
The Graph: Recent performance
The GRT coin rose immediately after launch, surging from $0.2599 on 18 December 2020 to $2.3465 on 13 February 2021. GRT subsequently fell to $1.3413 on 25 March 2021, before rising again to $2.1073 on 15 April 2021.
The coin price dropped to $0.5063 on 21 June 2021 before making a partial recovery in the following months, reaching $1.0723 on 22 August. Volatility set in soon after, with the GRT price dropping back down to $0.6288 on 28 September 2021. Despite rising again at the tail end of the year to reach $1.2089 on 9 November 2021, the price has since swung to lows of $0.3594 on 24 January 2022.
Moving roughly in line with broader market activity, GRT has suffered further losses, and on 19 June 2022 hit a new low of $0.090054. There was initially a marked uptrend following the integration of the Cosmos Hub to The Graph, and by 20 June, the token was trading at around $0.11. But the descent continued, and GRT hit a new all-time low of $0.086 on 13 July 2022.
At the time of writing on 20 July 2022, the token is currently trading at $0.1155. GRT has a maximum supply of 10 billion and a current circulating supply of 6.9 billion GRT coins. The Graph has a market cap of about $797m and is ranked number 59 on the CoinMarketCap platform.
How does this information impact The Graph price prediction? Let’s take a look at some price predictions to find out…
The Graph coin price prediction: Algorithmic forecasts
Remember that while predictions can be helpful as an indicator of which direction the price may move in, they should always be viewed as possibilities rather than absolutes. With that in mind, let’s see what forecasters are saying.
DigitalCoinPrice makes a The Graph price prediction for 2022 suggesting that the coin could be worth between $0.14 and $0.17 for the rest of the year. The website’s The Graph price prediction for 2025 stands at an average of $0.21, while its The Graph price prediction for 2030 thinks the coin could reach an average of $0.54 that year.
WalletInvestor thinks The Graph could be worth less than $0.003 in one year’s time. As a result, the platform says the coin is a “bad, high-risk investment option”.
PricePrediction.net is more optimistic, with a forecast of $0.17 for 2022, $0.56 in 2025 and $3.50 in 2030.
Despite a poor coin performance over the past year, the protocol itself has a number of strengths that could help to push the price up in the future. The coin has a solid market cap and there are several interesting developments that are either in their early stages or still in the pipeline.
Edge & Node, a software development company aiming to aid blockchain protocol development, was launched on the protocol’s platform in early 2020. Developed by the same founders as The Graph, any successes for Edge & Node will, by proxy, have a positive impact on the coin’s price.
When examining prospects for the GRT price, it is also worth remembering that much of the promise and hype around Web3 is yet to materialise.
On its website, The Graph writes: “Open protocols will create transparency and opportunity, enabling anyone in the world to contribute their talents to a global economy.” But while there is much interest in such terms, they remain largely an abstraction at the moment.
GRT has a maximum supply of 10 billion and a current circulating supply of 6.9 billion GRT coins (69%).
The coin has lost significant value over the past year but is showing some signs of recovering in the short-term. That said, significant backing from major investors – as evidenced by the recent successful funding round and subgraph migration – suggests notable support for the crypto’s offering.
The GRT coin could well go up, but it could also go down – experts seem divided in their opinions.
However, it is always worth remembering that forecasts, especially long-term ones, should be viewed as indicators rather than absolutes.
Investing is a highly personal endeavour. Do your own research and try to keep up-to-date on any developments within The Graph ecosystem that could boost or dampen its prospects.
Remember, investing can be risky, and cryptocurrencies are highly volatile. It is important never to invest more money than you can afford to lose.