The Graph ecosystem on CoinMarketCap is a vast and complex network, but don't worry, we'll break it down for you.
The Graph is a decentralized protocol that enables the creation of decentralized applications (dApps) on top of the Ethereum blockchain. It provides a scalable and efficient way to query and index data from various sources.
At its core, The Graph is built on a decentralized network of nodes that work together to index and serve data. This network is maintained by a group of volunteers, known as "Indexers", who are incentivized to participate through a proof-of-stake mechanism.
The Graph's native token, GRT, is used to reward Indexers for their contributions to the network, while also serving as a governance token to allow holders to participate in decision-making processes.
What Is
The Graph ecosystem is built on top of the Ethereum blockchain, utilizing its scalability and security features to provide a robust foundation for decentralized data storage and querying.
CoinMarketCap is a leading cryptocurrency data aggregator that provides real-time market data and analytics to help users make informed investment decisions.
The Graph's native token, GRT, is used to power the network and incentivize node operators to contribute to the ecosystem.
Data is stored on decentralized nodes, which are incentivized to participate through the GRT token.
The Graph's indexing protocol allows for efficient querying and retrieval of data from the decentralized network.
Price and Market
The Graph's price today is US$0.2163, with a 24-hour trading volume of $84.53 M. This is a significant market presence.
GRT has a circulating supply of 9.55 B GRT and a max supply of 10.79 B GRT.
The Graph's price has been on the rise, with a potential future outlook that could see it break the $5 mark once Web 3.0 tokens start to pump.
The token has gained over 450% since its launch in December 2020, with its current price holding in the $0.5 range.
Network and Components
The Graph Network is comprised of four distinct groups: indexers, curators, delegators, and consumers. Each group plays a vital role in the network's functioning.
Indexers operate nodes in The Graph Network, staking GRT to provide indexing and query processing services, and earn GRT for their services. They are the backbone of the network, making data accessible to the community.
Curators signal which APIs should be indexed on the network by depositing GRT into a bond related to a subgraph, earning a portion of the fees from the subgraph being signaled. This ensures high-quality data is prioritized.
Delegators allocate GRT to indexers in exchange for a portion of the fees and rewards earned by that indexer, helping to secure the network. This model encourages cooperation and incentivizes delegators to support reliable indexers.
Consumers pay GRT to use The Graph’s services, benefiting from the network's indexing and query processing capabilities.
A Brief History
The Graph was founded in January 2019 by Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez to address data query problems associated with creating smart contracts on Ethereum.
The team behind The Graph created an indexing protocol using subgraphs, making it convenient for developers to draw data from blockchains like Ethereum. This was a game-changer for developers, as it removed the need for centralised in-house servers and databases.
The Graph team created GRT tokens on the Ethereum blockchain as ERC-20 tokens that play a central role in the project’s economics. These tokens were distributed to network participants ahead of the mainnet launch.
In October 2020, the project team distributed GRT tokens to would-be network participants, with an initial circulating token supply of 1,245,666,867 GRT tokens. This was a significant milestone for The Graph.
The Graph obtained many high-level integrations from emerging DeFi platforms shortly after its inception.
What Does the Network Consist Of?
The Graph Network consists of four main groups: indexers, curators, delegators, and consumers. Each group plays a crucial role in the network's functioning.
Indexers operate nodes in The Graph Network, staking GRT to provide indexing and query processing services, and earn GRT for their efforts. They also profit from the Cobbs-Douglas Rebate Function, which distributes a Rebate Pool proportionally to the effort of all network contributors.
Curators signal which APIs should be indexed on the network by depositing GRT into a bond related to a subgraph, earning a portion of the fees from the subgraph being signaled.
Delegators allocate GRT to indexers in exchange for a portion of the fees and rewards earned by that indexer, helping to secure the network. They also benefit from the network's services.
Consumers pay GRT to use The Graph's services, benefiting from the service that the network provides.
Tokenomics and Purpose
The Graph's tokenomics play a crucial role in the ecosystem's functionality. The total token supply of GRT tokens is 10,000,000,000.
Indexers stake GRT to become more visible in The Graph's query market and secure the network. This incentivizes beneficial behaviours, such as indexing new subgraphs, which helps the network grow.
Delegators and consumers use their GRT tokens to provide staking support to indexers and to purchase services from the network respectively. The circulating supply of GRT tokens is currently set at 4.72B.
Purpose
The Graph tokens, specifically GRT, serve a crucial purpose in the network's ecosystem. They're mainly used for indexer staking and curator signalling.
Indexers stake GRT to become more visible in The Graph's query market and secure the network as they conduct their services. This is a key part of the network's functionality.
Curators are essential to The Graph's decentralized economy because they review and signal subgraphs that should be indexed by the network. They use their expertise in the web3 ecosystem to make informed decisions.
Delegators and consumers in The Graph Network also use GRT tokens to provide staking support to indexers and to purchase services from the network, respectively. This helps to create a balanced and efficient system.
The Graph Network pays curators who flag high-quality subgraphs with a share of the query fees generated by those subgraphs. This financial incentive encourages curators to identify valuable subgraphs.
Early signalling is financially rewarded for curators, which helps to promote the growth and development of the network. This is a key aspect of The Graph's tokenomics.
Tokenomics
Tokenomics is all about the rules that govern a token's existence. The total token supply of GRT tokens is 10,000,000,000.
This massive number is important because it sets the limit for how many GRT tokens can ever exist. The current circulating supply is set at 4.72B GRT. This means there are already billions of GRT tokens out there being used and traded.
Getting Started
The Graph ecosystem is an open-source, decentralized platform that makes it easy to build applications that can query and index data from the blockchain.
CoinMarketCap has partnered with The Graph to provide a seamless experience for users to explore and discover new cryptocurrencies.
To get started, you'll need to create an account on CoinMarketCap, which is a simple and quick process.
You can then connect your wallet to CoinMarketCap and start exploring the various features and tools available on the platform.
The Graph's decentralized network allows for fast and efficient data retrieval, making it an ideal solution for applications that require real-time data.
The CoinMarketCap-Graph partnership provides a robust and scalable solution for data indexing and querying, enabling developers to build innovative applications.
Frequently Asked Questions
Does grt coin have a future?
According to our analysis, the GRT coin is expected to experience a short-term decrease, but its long-term prospects are uncertain. For a more detailed outlook, please refer to our The Graph price prediction for a comprehensive understanding.
Will GRT reach $1?
According to our GRT price prediction, a maximum price of $1.00 is possible by the end of 2025, but actual outcomes may vary. Learn more about our GRT price forecast for a detailed analysis.
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