An Ethereum-based (ETH) altcoin has seen its price skyrocket by 175% in less than a week to shatter the $1 billion market cap level. Blockchain indexing protocol The Graph (GRT) has seen its price tag dramatically shoot up since the first of February. The token surged from the $0.08 mark all the way to $0.239 […]
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GRT has turned technically overbought, but its long-term potential remains skewed to the upside, thanks to healthy network fundamentals.
The Graph (GRT) price slipped on Feb. 8 alongside a broader correction across the top crypto assets.
GRT price plunged nearly 14.5% intraday to $0.18, showing signs of short-term upside exhaustion after rising over 200% earlier in the year. At its sessional high, the token was changing hands for $0.23 on Feb 7, its highest level in nine months
Buy flocked into the GRT market amid a relatively stronger risk-on mood, led by the Federal Reserve's slower interest rate hikes and a strong recovery witnessed in the Bitcoin (BTC) market, which typically influences altcoins into tailing the trend.
The GRT price rally also accompanied similar gains across data management platform tokens. This sector's market capitalization doubled so far in 2023, with Ocean Protocol (OCEAN), Mask Network (MASK), and Band Protocol (BAND) recording over 200%, 100%, and 60% gains, respectively.
The impressive GRT price rally has left The Graph as technically overbought, according to its daily relative strength index (RSI) indicator.
Notably, the daily RSI has exceeded 70, which traditional analysts consider an "overbought" signal. This typically leads to upside exhaustion, followed by consolidation or a significant price correction.
In either case, GRT's overbought status risks plunging its price by 30% in the next month to $0.13, a support level from the May-June 2022 consolidation session. The line also appears near the GRT/USD pair's 200-day exponential moving average (200-day EMA; the blue wave) near $0.11.
Nevertheless, from a fundamental perspective, GRT looks stronger due to its healthy network metrics.
For instance, The Graph recorded 66% quarter-over-quarter growth in its revenue from query fees in Q4 2022 due to the migration of subgraphs from its hosted service to the decentralized network (mainnet) in and after March 2022.
The Graph ecosystem involves two key players: on-chain API (or subgraph) developers and data consumers. Data consumers pay subgraph developers a fee to obtain data from blockchains, called query fees. This fee is paid in GRT tokens.
"Query fees should continue to increase as more subgraphs are migrated to mainnet in the coming quarters," noted Mihai Grigore, a researcher at Messari, in his quarterly report on the project, adding:
"This increase in volume may attract more key participants to the protocol as it drives profitability for existing ones."
Related: Blockchain indexer The Graph says adoption is still strong 2 years after mainnet launch
As a result, GRT's long-term bias could remain skewed toward the bulls. Moreover, independent analyst Altcoin Sherpa anticipates a strong bounce after The Graph token tests $0.13 as support.
"I'll just wait for a consolidation or dip and buy," he wrote, adding:
"You're going to look for stuff like this at .13 on lower TFs; some consolidation before another leg. Given how badly this one got rekt, I think it has more left in the tank. Insane volume."
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
The graph token surged by over 35% so far on Tuesday, as markets continued to be buoyed by the growth of its ecosystem. Since allowing integrations to new blockchains, prices of the indexing protocol’s native token have jumped by over 200% from 2022 lows. Litecoin was also higher today, breaking a three-day losing streak. The […]
More than 10,000 delegators have since joined the blockchain indexing network.
According to data provided to Cointelegraph on Dec. 15, network growth still appears to be strong for blockchain indexer The Graph. Launched two years ago, The Graph Network allows developers to easily search, index, use and publish data from public blockchains.
From November 2021 to November 2022, the total number of developers on The Graph (both active and inactive) increased by 145% to 38,000. During the same period, average GRT query fees per month increased by 1,191% to 354,000, while total lifetime GRT queries on the decentralized network increased by 984% to 5.2 billion. Finally, total subgraphs, or proxies for applications, increased by 122% to 641 on the decentralized network in the same period.
Since the network launched, over 200 indexers, 10,000 delegators and 2,500 curators have been onboarded to the blockchain. Over 500 subgraphs migrated from the original hosted service to the fully decentralized network. It currently indexes data from 39 blockchains, including Ethereum, Near, Arbitrum, Optimism, Polygon, Avalanche, Celo, Fantom, Moonbeam, IPFS, Cosmos Hub and more. The total number of subgraphs has grown from deployed in decentralized applications has grown from 3,800 at launch in December 2020 to 74,000 now.
Commenting on the results, Eva Beylin, director of The Graph Foundation, stated:
“For The Graph Network’s 2nd birthday it’s incredible to see our Graph Advocates organizing celebrations in their cities around the world. When I think about the growth over the last two years, I’m blown away by the Advocates’ dedication to The Graph’s mission to support web3. This community is inspiring.”
The graph was a notable mover in Friday’s session, as the token rallied to a multi-week high. Prices rose by as much as 16% in today’s session, with chainlink also seeing its price climb by a double-digit percentage. Overall, the global crypto market cap is up 1.92% as of writing. The Graph (GRT) The graph […]
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ATOM fell towards a three-week low on Thursday, as crypto markets were victim to yet another red wave. Overall, markets are down nearly 5% as of writing, with GRT dropping by almost 10% lower on the day. Cosmos (ATOM) ATOM dropped towards a three-week low during Thursday’s session, as global crypto markets were nearly 5% […]
A closely tracked crypto strategist is mapping out the potential bottom for one Ethereum (ETH) challenger while predicting bounces for Cosmos (ATOM) and The Graph (GRT). Pseudonymous analyst Altcoin Sherpa tells his 174,500 Twitter followers that developer-focused blockchain Near Protocol (NEAR) is likely close to printing a local bottom. “I’m guessing this finds a short-term […]
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As crypto markets moved into the green on Tuesday, GRT was one of the biggest gainers, as prices rebounded following recent declines. ZEC was also higher on the day, climbing by as much as 5%, while DOGE extended Monday’s gains. The Graph (GRT) GRT was easily one of the biggest gainers in crypto markets on […]
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