GRT cryptocurrency

GRT cryptocurrency (the Graph) is a digital currency that appeared in the cryptocurrency market in 2018, based on the Ethereum network. The Graph is a decentralized protocol designed for efficient indexing and requesting data from public blockchains.

It assists developers in finding relevant records from all public data necessary for creating decentralized applications. In other words, it facilitates the search for information stored in the blockchain, comparable to an instruction that directs where to find specific information, also organized alphabetically.

Thanks to the Graph Network, serverless dApps (decentralized applications) can be designed, fully operating within the public infrastructure. GRT cryptocurrency was first implemented on the Ethereum network. Today, its subgraphs are used in more than 20 decentralized networks.

GRT history

The creators of the Graph Protocol are Yaniv Tal, Jannis Pohlmann, and Brandon Ramirez who developed it in 2018. As students at the University of Southern California, Tal and Ramirez had already attempted to create projects that could help developers simplify their tasks. The creators of GRT are engineers who worked together on various projects for about 4-8 years, spending much of their careers optimizing the API stack, including at MuleSoft, which later went public through an IPO and was acquired by Salesforce.

The GRT developers thoroughly studied the Ethereum network. Having tried their hand at various IT projects, they realized that this complicates the work of dApp developers, as the protocols lack completeness. This prompted them to create indexing logic prototypes for use in a decentralized network. In 2018, the company founders registered the Graph Foundation in the US, which provided intellectual property protection and handled the distribution of technologies. After launching, the Graph Foundation focused on financing other engineering groups and participating in the ecosystem formation.

Working on the test version of the Ethereum blockchain network, the developers launched the Graph Network in December 2020. The project managed to raise funding amounting to $69.6 million. In January 2019, a funding event was held, during which the cryptocurrency fund Multicoin Capital enthusiastically took the initiative and managed to raise $2.5 million for the project. In 2020, GRT decided to organize a token sale, raising $12 million. During an investment round in January 2022, $50 million was raised, marking the project's largest financing to date.

Today, funds such as Digital Currency Group, Coinbase Ventures, AU21 Capital, and Tiger Global Management are investing in GRT. The creators of GRT aimed to make Web 3 accessible to everyone, setting the ambitious goal of creating dApps without external servers and centralized management.

Why it is unique

The uniqueness of GRT lies in its ability to simplify the amalgamation of data from different blockchains, such as BNB Chain, Ethereum, and Polygon. This is very convenient because developers no longer need to create their own smart contracts to work with this data. GRT facilitates faster and more efficient access to blockchain information, accelerating the development of decentralized applications. Moreover, the network provides rewards to delegates, indexers, and curators.

Application developers and decentralized applications can query the network using GraphQL. GRT employs a subgraph order, and GraphQL is paid in GRT digital tokens. The GRT system allows for blockchain data searching without the need for centralized services.

It is unique in that it uses so-called subgraphs – structures that define how to organize blockchain data for the convenience of application developers. Through these subgraphs, which essentially serve as data indexes, developers can create APIs by accessing the necessary blockchain data. This makes GRT an important tool in the market that simplifies and speeds up the development of decentralized applications (dApps).

Thanks to its decentralized structure based on nodes, GRT stands out for its security and reliability. A distributed network makes hacking or compromising data more difficult, providing a significant advantage over traditional, centralized indexing systems. Creating an index is a complex and time-consuming task, especially when it comes to blockchains, but GRT offers a solution that simplifies this process.

How GRT operates

The GRT cryptocurrency is often compared to Google: the system operates as a search engine. It enables quick searches by scanning files and data. With GRT, developers can create subgraphs and provide them to the system for distributing data into decentralized applications.

As mentioned earlier, the token is decentralized, so a significant portion of the protocol's action steps is distributed among participants. They contribute to the network's operation and receive GRT tokens as rewards.

To sum up, GRT not only has developer communities creating subgraphs but also four main types of participants:

1. Indexers operate the main channel for blockchain data transmission, in other words, node operators. They are responsible for indexing the blockchain, processing queries, and receive rewards for their work. Initially, they are required to stake no less than 100,000 GRT. If a node provides incorrect data, the operator will be penalized.
2. Curators are participants help organize data by signaling subgraphs with important information for indexing. They stake their GRT in chosen subgraphs, creating a signal. Many curators can support the same subgraph.
3. Delegators are participants who delegate to a particular indexer and provide security without running a graph node themselves. Delegators receive a portion of the rewards for query processing. If a delegator withdraws their GRT, they must wait for a 28-day unlocking period.
4. Consumers are participants who are the final link in the protocol's user chain. Using GraphQL, these participants obtain information from subgraphs. They pay for the requested information with GRT tokens, which are then distributed among indexers, delegators, and curators.

Tokenomics of Graph

The Graph utilizes the ERC-20 utility token GRT. This cryptocurrency significantly impacted the project's funding even before the main network's launch during 2018-2020. Through private and public token sales, 17% of the total asset volume was sold, raising about $7.5 million. This was a crucial step in the project's development and drew additional attention to its potential.

At the start of The Graph Network, the GRT issuance totaled 10 billion. The token distribution was as follows:

• The team and advisors received 23%;
• The organization (The Graph Foundation) received 35%;
• Investors received 34%;
• The Edge & Node community received 8%.

The GRT cryptocurrency logo

The token unlock was planned over 10 years. As of August 2022, 74% of the standard supply, or 7.4 billion GRT, was unlocked. The annual additional issuance of the asset was about 3%. A series of regulated mechanisms were developed to easily extract and burn a portion of the tokens.

The GRT cryptocurrency has a reward system that allows The Graph Network protocol to operate successfully.

The token has several use cases:

• Funding. Developers who have created subgraphs and other tools receive grants from The Graph Foundation;
• Staking. Indexers lock GRT tokens, proving their reliability in processing queries and indexing subgraphs.
• Signaling. Curators invest their GRT in subgraphs to draw indexers' attention to these subgraphs.
• Delegation. Delegators pass their GRT to indexers to participate in the indexing process under certain conditions.
• Payment. Users needing access to subgraph data pay GRT for using this information.
• Rewards. Indexers, curators, and delegators receive a portion of the payment for processing queries to subgraphs.

How GRT developed

In 2020, GRT announced its integration with the Chainlink protocol. This integration made it possible to transfer information from subgraphs to smart contracts via decentralized oracles.

In 2021, The Graph Foundation invested $5 million in awards to 10 countries worldwide. About 50 teams began developing tools for protocol subgraphs and educational materials.

GRT attracted several companies that successfully worked on blockchain security, finding the best solutions for them. This helped improve the GRT ecosystem. Among these companies were Chain Safe, Open Zeppelin, Consensys Diligence, and others.

In 2022, a $205 million fund was created. Its main task was to raise funds for crypto projects for GRT's operation.

Sometime later, GRT launched the Graph Advocates project. From those in the organization, individuals who could take on the role of an ambassador were selected. They were tasked with organizing events, working on educational content, and providing technical support anywhere in the world.

Additionally, a new governing body, Graph Advocates DAO, was established. This organization became independent and decentralized. It was responsible for overseeing and sponsoring the project, funding programs, and directing awards.

Less than two years after the project's launch, it had established itself as a necessary component of the Web3 platform and the rapidly evolving DeFi industry.

Currently, the GRT cryptocurrency helps organize information across 31 blockchain networks, including Ethereum, Near, Arbitrum, Optimism, Polygon, Avalanche, Celo, Fantom, Moonbeam, IPFS, and PoA.

A large number of developers have already created over 31,000 subgraphs for various projects, including Uniswap, Known Origin, Gnosis, Balancer, Livepeer, Zora, DAOstack, Audius, and Synthetix.

Today, the GRT cryptocurrency is traded on major exchanges, including Bybit, Binance, and Coinbase. It also has a high market capitalization and ranks in the top 100.

How to buy Graph (GRT)

The GRT cryptocurrency can be purchased in various ways. The simplest option is to open an account on a cryptocurrency exchange. The trading exchange can offer you currency pairs. To acquire the GRT token, place a buy order. Once the buy order is executed, the currency will be credited to your exchange account.

After the order is confirmed, the exchange completes the transaction. Buy orders can be either market or limit orders. Market orders are executed at the current market price, whereas limit orders are set at a price specified by the buyer. Therefore, a market order placed by the buyer is executed instantly at the current price. If a limit buy order is placed by the user, it will have to wait until the market reaches the desired price before the exchange completes the deal. Tokens are credited when the buy order is fulfilled.

Where to store GRT

It's important to ensure the security of your funds. There are several methods for storing GRT, including using cryptocurrency wallets. The most reliable options are:

• Trust
• Ledger
• Crypto.com
• Guarda
• Wirex
• OKX

It is not recommended to keep funds on an exchange, as they may become a target for hackers.

Web applications are also quite secure but are less protected compared to cold wallets. The most secure method of storing cryptocurrency remains hardware wallets, especially if you plan on long-term investments and holding large amounts of digital assets. For long-term storage, the best wallets are Ledger and Trezor.

How to earn with GRT cryptocurrency

There are two main ways to make money in the crypto market: investing and trading.

Long-term investments are straightforward: those who invested in GRT at early stages have already yielded lofty profits. However, the project continues to evolve, updating its plans and adding new tools. Thus, buying the asset and holding it for some time could result in substantial earnings.

As for trading, this requires specific skills and abilities. The capacity to analyze charts, and identify critical points such as support and resistance levels, will help to open positions timely and earn profits.

For beginners, spot trading is the best option as it's simpler and more straightforward. Those looking to increase their chances for higher earnings might try margin trading with leverage. However, this also increases risks, so margin trading is recommended only for experienced users.

GRT cryptocurrency dynamics

The GRT token was launched at the end of 2020. On January 1, 2021, the price of one GRT was $0.3632. The token's rally was driven by the overall market upswing and specific factors, such as exchange listings and the protocol's growing popularity in decentralized networks. In February, the price reached a peak of $2.3465, followed by fluctuations. The last price peak was recorded in August, after which the value began to decrease.

Currently, GRT is in the TOP-100 cryptocurrencies and has the potential to grow along with the market. Forecasts suggest that by the end of 2024, GRT's price could reach $0.4315.

The current GRT rate is $0.33790 with a market capitalization of $3.18 billion. The 24-hour trading volume is $267.65 million. A downward trend is noted. There are 9.42 billion GRT in circulation out of a maximum possible 10.79 billion.

What influences market quotes of GRT

The crypto market has many factors that can lead to an asset's price dropping or rising. The main ones include:

1. Demand and supply are the cornerstone of any cryptocurrency's value. The more people want to use GRT, the higher its price.
2. Technological development is the introduction of innovations and protocol updates, such as hard forks, influences GRT's value.
3. Activity of large investors (whales). Their significant transactions can seriously affect GRT's market price, sometimes even a single sale can cause a price drop.
4. Regulations and policy. Official decisions and regulatory changes can also significantly impact the value of cryptocurrencies.
5. News and media. News about the application of GRT technology by major networks can cause a demand surge and, consequently, a price increase.
6. Network expansion. GRT is already used in more than 30 networks, and its application potential is even higher — in hundreds of blockchain projects and tens of thousands of cryptocurrency initiatives.
7. Overall market trends. The general market sentiment, whether optimistic (bullish) or pessimistic (bearish), also significantly affects the price of GRT.

Currently, GRT is used in more than 30 different networks. Developers and projects from over 400 existing networks and more than 20,000 cryptocurrency projects could potentially implement GRT in their systems. The overall bullish market sentiment also contributes to increasing interest in GRT and may trigger its value growth.

Understanding these factors is crucial for investors and market participants, as they directly impact GRT's price fluctuations and can serve as a basis for making informed investment decisions.

Is GRT good investment?

The cryptocurrency market is unpredictable and highly volatile. Therefore, before investing, it is recommended to analyze the project carefully. Determine its development, understand how these technologies are implemented, and assess their prospects. You should evaluate the project's pros and cons and its risks.

GRT cryptocurrency has gained popularity since its launch in 2020. However, like with other crypto assets, thorough research is advised before investing in GRT.

An important aspect to consider when assessing GRT's financial potential is its practical application. GRT facilitates developers' access to data from various blockchains for indexing. This enables the creation of unique decentralized solutions, making GRT a valuable tool in the blockchain ecosystem. It is precisely these capabilities that set GRT apart from other assets.

Many renowned blockchain applications accept GRT, including Uniswap, Aave, and Compound. This speaks well of the platform. The foundation's staff is also worth mentioning. With significant experience in the blockchain business, the creators of GRT cryptocurrency have demonstrated their capability and the company's ability to fulfill the tasks set before them.

Major venture capital firms have funded GRT, providing good investment backing for the project to continue its development for GRT. However, don't forget the risks associated with financial investments in digital assets. Speculation and sudden fluctuations significantly impact GRT's cryptocurrency price.

In many countries, the world of cryptocurrencies is largely unregulated – it's important to remember this. Before any investments, we recommend conducting an in-depth study of the chosen asset. This way, you can protect yourself from unnecessary losses of time, money, and energy.

Be aware of the contradictory nature of some forecasts for GRT's price. Undoubtedly, we cannot precisely predict the future value of the token. Many circumstances can influence the price. Sometimes just one piece of news can turn the price in the opposite direction. The overall market sentiment, project events, and innovative development can all impact the price of digital assets. We advise always conducting thorough research before investing.

Conclusion

GRT cryptocurrency stands out among a vast number of digital assets due to its unique role in the blockchain ecosystem. It offers a solution for indexing data from various blockchains, making it an essential tool for developers of decentralized applications. The significance of GRT is also confirmed by its use in major blockchain projects and support from leading venture capital funds.

However, like any cryptocurrency asset, GRT comes with certain risks associated with market volatility and the changing technological environment. We recommend investors thoroughly study the project and consider all factors affecting its value before deciding to invest their money. Understanding the potential and risks is crucial. Only then can you make an informed choice for or against investing in this asset.