Should you (or anyone else) buy The Graph (GRT)?

Should you (or anyone else) buy The Graph (GRT)? - The Graph CryptoThe Graph (GRT) has been defined by some as the Google of blockchains, because it is concerned with simplifying the organization and access to data. It is an indexing protocol that works with different blockchains. It uses something called "subgraphs" to create sets of data that can be shared between various applications.

If we continue the Google analogy, one is the search engine of the current iteration of the Internet, but The Graph will be the search engine of Web 3, the next generation of the Internet.

Fundamentals of coins

GRT has been in the top 100 cryptocurrencies by market capitalization since its launch. An advantage of The Graph for investors is that they can stake their tokens and earn rewards.

  • What it does: GRT is the utility and governance token for The Graph's indexing protocol.
  • Management team: The Graph has a decentralized ecosystem, but two groups - the Graph Council and the Graph Foundation - support its activities. Eva Beylin is the director of the Graph Foundation and has a solid foundation in cryptography and management.
  • Launch date: The Graph was founded in 2018 and launched GRT in December 2020.
  • Market cap: $ 1,2 billion (CoinMarketCap, May 16, 2022).
  • Availability: Most major US cryptocurrency exchanges.

Is it worth buying?

Like many cryptocurrencies, The Graph had a tough six months. Despite this, this year it has appeared a couple of times in our ranking of the best daily earnings. There is excitement about the upcoming Graph Day in June and a grant program to incentivize development.

Unfortunately, that wasn't enough to get them through the recent cryptocurrency turmoil. The Graph is currently worth around 70% less than in early 2022 and is now at an all-time low. Some may see this situation as an opportunity to buy a solid cryptocurrency at a discounted price. Others may fear that The Graph may drop further or not perform in the long run.

Uncertainty in the economic climate and fears of a recession have made many investors wary of risky assets such as cryptocurrencies. We don't know what will happen, but it is wise to prepare for a possible period of prolonged low prices. This means that one of the biggest risks for GRT investors is that, along with many other cryptocurrencies, it may not survive the cryptocurrency winter.

It's also worth noting that The Graph isn't the only operator in this space, although it has garnered a lot of attention. It's worth comparing The Graph with competitors, such as Bitquery, to see how it fares.

The Graph is a well respected cryptocurrency

That said, The Graph is a well respected cryptocurrency that solves a major problem in the industry. It has a strong governance structure and experienced figures from the cryptocurrency industry are involved in the project. It integrates with several blockchains, including Ethereum (ETH), Solana (SOL), Polkadot (DOT) and NEAR Protocol (NEAR).

Additionally, several key crypto projects have subnets in The Graph ecosystem. These include Livepeer (LPT), Audius (AUDIO), Sushi (SUSHI), Curve (CRV), Decentraland (MANA), Uniswap (UNI) and others, which for the record you can also trade on Bitcoin Revolution. Its grant program has already allocated nearly $ 12 million to support ecosystem development and evolution. These incentives are becoming a popular way to encourage developers to use certain networks.

In conclusion

The Graph has great potential, but there are no guarantees in cryptocurrency investments. Be sure to do your research and think about how The Graph fits into the rest of your portfolio and your investment strategy. Most importantly, invest only the money you can afford to lose in a high-risk asset like cryptocurrencies. This way, if the project is successful you will benefit, but if it fails it will not be financially devastating.