Graph Token Surges To $500,000,000 Market Cap: Analysis

The new crypto-asset built on Ethereum, the Graph token surges to $500,000,000 market cap days after its launch. The token was conceived in 2017 and witnessed the market capitalization increase to more than $500 million as we are reading more in the latest cryptocurrency news today.

The Graph token is an ethereum-based indexing protocol that enables the users to query data from a blockchain in a decentralized manner. Before it was created, the Graph team found it hard to extract high-quality data from the blockchain as per the reports:

“Before The Graph, teams had to develop and operate proprietary indexing servers. This required significant engineering and hardware resources and broke the important security properties required for decentralization.”

Dubbed as the Google of Web 3.0, the Graph token relies on the network of individuals to allow the consumers or users to access blockchain data. Indexers are node operators that stake GRT to provide services like indexing and query processing which generate income from query fees in the form of GRT. The delegators are individuals who don’t want to run the nodes but can still contribute to the network and its security by staking GRT on behalf of the indexers. For the services, they earn a portion of the indexer fees and rewards. The curators are developers that deploy the tokens to signal indexers which APIs or subgraphs will be indexed by the protocol.

 

The technology behind Graph is being used to power the top decentralized finance projects like the decentralized exchange Uniswap derivatives trading platform Synthetix and Aave. A few hours after the December launch, GRT’s market cap surged from $165 million to $521 million on December 19^th but also, the Graph token surges to $500,000,000 in market cap terms and the price hit $0.569 representing an increase of over 321%.  Prominent crypto analyst trader Josh Rager already said that traders should keep an eye on the GRT token:

 “Pay attention to GRT. DeFi + actual working product. Many don’t understand GRT or the fact that Uniswap currently operates on The Graph. Already listed on the top exchanges – it’s easy to see GRT’s potential as big DeFi player.”

As reported a few days ago, The Graph is a platform that allows users to get easy access data from blockchains especially ETH. The developers can integrate The Graph data into their decentralized applications through subgraphs and public and open API technology. While many may not know it, for a few months, the technology of this project has been powering some of the top Defi apps in the space like Balancer, Uniswap, and Synthetix.