3 factors give momentum to The Graph (GRT).
Graph (GRT) price rallied after its catalog of subgraphs expanded and Web3 became a trending topic of discussion among tech and crypto pundits.
The advancing digital revolution and the rise of the internet have shaken the global value structure in the last 30 years, big data has become the new “gold” or “oil”. The fact has been proved by the monetization of platforms like Google and Facebook.
The Graph (GRT) is considered a blockchain project focused on the future of data retrieval and data governance. This is an indexing protocol designed to query networks like Ethereum and IPFS by creating open APIs, also known as subgraphs.
Data from TradingView shows that since hitting a low of $0.34 on Jan. 24, GRT has made multiple attempts to sustain a breakout above the key support and resistance at $0.48.
GRT price chart | Source: TradingView
The three reasons behind the growth of GRT are the addition of new subgraphs operated by GRT; increased awareness of The GRT Network opportunities due to community engagement; along with the continued growth of Web3, which relies heavily on data providers and Oracle.
The evolution of the subgraph
One of the main reasons the market is paying more attention to The Graph is that the network is increasingly providing subgraphs for popular dapps and blockchain protocols.
Subgraph is an open application programming interface (API) that can be created by anyone and is designed to make data easily accessible. The GRT Protocol aspires to be a global GRT, integrating all of the world’s public information, which can then be transformed, organized, and shared across multiple applications for anyone to query.
The protocol is currently hosted on the Ethereum (ETH) network and adds support for Ethereum Virtual Machine (EVM) compatible networks including BNB Chain, Avalanche, Fantom, Arbitrum, Polygon and Moonriver.
Subgraphs can also be implemented for individual projects, such as integrated current game subgraph for NiftyLeague, the community-run game studio.
Another notable addition that highlights the usefulness of sub-charts is the integration with the Juicebox protocol, the fundraising protocol behind ConstitutionDAO and AssangeDAO, which uses sub-charts to provide analytics that are displayed on every page.
New developers and initiatives from the community
The second reason for the increasing attention on The GRT is efforts to increase community reach and engagement through events like the ongoing ETHDenver conference.
In addition to the ETHDenver conference, where The GRT sponsored a chess tournament hosted by Nifty Chess, the project has also supported the developer community by releasing grants, including a $1 million grant to the Nomic Foundation to support the development of a important tool to support Ethereum.
The GRT Grants initiative is also cooperate with data analysis platform SimpleFi to fund the creation of subgraphs for many DeFi protocols including Alpha Finance Lab, Frax Finance, Convex Finance and Ribbon Finance.
The GRT has also funded a new initiative through The GRT Academy aimed at helping community members learn more about the protocol through a course listed on freeCodeCamp.org. The course will teach participants how to create DApps using the Graph protocol.
Web3 is becoming more and more popular
A third factor driving the prospects for GRT is the growing popularity of Web3 as the field becomes a talking point in the mainstream market.
Web3, as defined by Wikipedia, is “the new generation of the World Wide Web, based on blockchain technology, combining concepts such as decentralization and a token-based economy”.
The overarching goal of Web3 is to move from the current form of the Internet, where much of the data and content is controlled by big tech companies, to a more decentralized environment where public data is more freely accessible and personal data is owned by the users themselves can be controlled.
The Graph Protocol’s ability to create a global public information network eliminates the need to develop and operate proprietary indicator servers, saving technical resources, time and money, and a centralized hardware facility for information.
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