The Google of blockchain – Here is why The Graph (GRT) is a sleeper bluechip for Web 3.0
Widely-followed crypto analyst Ben Armstrong from BitBoy Crypto shares with his subscribers about the massive potential of The Graph (GRT) and how it is going to disrupt the blockchain industry.
The Graph overview
The Graph, sometimes called the Google of blockchains, is a decentralized indexing protocol that offers a seamless, hyper-efficient way to organize and query blockchain data.
“It has solved one of the most pressing issues facing developers in Web3.”
As the trader says, the first thing to understand is that The Graph isn’t a blockchain. Instead, it’s an indexing layer that sits on top of a blockchain, allowing for transparent decentralized APIs, or application programming interfaces. In simple terms, The Graph gathers and analyzes data before storing it into subgraphs which dApps can search through to instantly receive the right information.
According to Armstrong, The Graph is experiencing exponential growth. In the past 18 months, they’ve had over 135 billion on the hosted service, of which 5 billion coming since May this year.
“That tells us two things. The blockchain use is growing exponentially and that The Graph’s technology is playing a defining role,”
GRT tokenomics
Despite having a working product with a crystal clear use case, widespread adoption and no real competition snapping at their heels, the trader suggests that GRT is unlikely to do 100X anytime soon.
“It’s hard to believe, but it comes down to tokenomics.”
According to the trader, the team and early backers have the lion’s share in almost 60% of the original 10 billion. Besides, it has an inflationary model of 3% a year to cover indexing rewards, a vesting and distribution schedule playing out over a decade, a burn rate of only 1%, and as many as 800,000 tokens flooding the market a day.
“GRT could come under some major sell pressure as time goes on,”
However, Armstrong points out that it does not mean GRT cannot pump 100x. It will be doing that over the time as DeFi and Web3 grow exponentially.
“It is a long-term investment, not an overnight sensation. The Graph could see its adoption and market cap reach levels we can’t even compute today. I mean, it could literally play a role in the lives of billions of people all over the globe. The project might have started out on Ethereum back in 2018, but their vision is to be part of a multichain future. And they’ve been steadily expanding support for all major layer 1s.”
In terms of this bull cycle, though it had had a decent consolidation period since the mini-crash in May, the trader says that GRT is moving at a different pace from the rest of the market. He expects to see GRT at around $3 to $4 in this run.
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