The Graph (GRT) is an indexing protocol designed for efficiently organizing and accessing data from blockchains and storage networks. Developers can build and publish open APIs, called subgraphs, which applications can use to query data from blockchains. More than 10,000 subgraphs have been deployed so far and are used by a range of applications including Uniswap, Synthetix, Decentraland, and CoinMarketCap. The Graph network is made up of indexer nodes which compete to provide indexing services, curators who assess and signal high quality subgraphs, and delegators who delegate their stake to indexers to help secure the network.

The Graph’s native token GRT is staked by indexers, curators, and delegators to keep the network secure. It’s price has seen some significant changes in the short time it’s been on the market and if you want to know why then you’re in the right place. We’ve compiled everything you need to know about GRT price – as well as the factors which influence it.

The Graph Price History

GRT hit the market with the launch of The Graph mainnet on December 17th, 2020, trading at its initial coin offering (ICO) token price of $0.03. The coin immediately got off to a good start as it surged by over 2,500% to peak at $0.78 a few days later. Prices then declined over the next three weeks until they reached a low of $0.23 in January 2021.

The trend reversed at that point and GRT climbed for the rest of the month. The rally continued into the start of February when The Graph’s market cap surpassed $1 billion for the first time and price growth became exponential around the middle of the month when GRT rose by more than 60% in a single day before peaking at its all-time high of $2.88 on February 12th 2021. At that point The Graph had a market cap of over $3.2 billion.

After that, GRT consolidated for the next two months before a 45% pullback in the second half of April took prices as low as $1.11. A few days later GRT had regained $1.50, representing year-to-date gains of around 330% – and lifetime gains of roughly 4900%.

Analyzing The Graph Price History

GRT’s price history can be analyzed with many of the same techniques as stock market analysis. Technical analysis (TA) involves using various indicators while studying price charts in order to make sense of previous price movements. With GRT, as with many other tradable assets, large price swings are often accompanied by spikes in trading volume, as a large number of users buy or sell their coins on exchanges. GRT experienced significant trading volume in its first few days. The token was listed on major exchanges like Coinbase and Binance as soon as it launched which brought it to a wide audience and likely contributed to its huge price surge around that time.

Fundamental analysis (FA), on the other hand, looks at the finances and activities of a company, as well as the state of the wider market and economy. The Graph had raised about $25 million by November 2020 and was supported by big name backers including Coinbase Ventures, ParaFi Capital, and Digital Currency Group, which could be a good sign of the faith the industry has in this project’s fundamentals.

Broader market trends have also played a role in GRT’s price history. Its surge in the first quarter of 2021 wasn’t unique – the entire crypto market pumped around this time. Bitcoin was in the midst of a major bull run then, and with such strong market dominance, any significant price movement for Bitcoin often impacts other cryptocurrencies.

The pullback in April 2021 was also common across other cryptocurrencies and markets and was believed to be influenced by the US government’s proposal at that time to significantly increase long-term capital gains taxes.

The overall price trend of GRT tends to follow what’s known as a boom-and-bust cycle. This is a pattern in which a period of growing excitement leads to a surge in price before doubt and disillusionment set in and result in a crash.

Factors Influencing The Price of The Graph (GRT)

A variety of different things can affect the price of GRT, including project news and developments, the flow of assets on exchanges, public sentiment, and emerging trends in the wider cryptocurrency and global economies.

GRT has an initial supply of 10 billion and an annual inflation rate of about 3% used to pay rewards to indexers. However, 1% of query fees, the withdrawal tax charged to curators, and unclaimed rewards are all burned. This means that if there are enough query requests on the network, GRT could potentially become a deflationary asset, which would put upward pressure on its price.

The level of demand for the token also affects its price. A major source of demand comes from network participants as indexers, delegators, and curators all have to stake GRT to secure the network. Indexers earn query fees and indexing rewards, while delegators earn a portion of the fees and rewards received by the indexer to whom they delegate, and curators earn a share of the query fees. These fees and rewards will likely continue to incentivize more people to participate in the network, which would require them to buy GRT to stake, effectively removing it from the circulating supply.

As a rise in query fees would both create more incentive to stake GRT and potentially reduce the token’s supply, GRT’s price will most likely rise with adoption of The Graph’s network. Over 10,000 subgraphs have already been deployed and a wide array of applications employ them. If more applications join the network it could push up the price of GRT.

Live The Graph Value and Market Cap

The live price of GRT varies from moment to moment as it’s dictated by the balance of buyers and sellers on exchanges, which is in constant flux. 

Given GRT’s volatility, its live price can change by a large amount in a very short space of time. The market cap of The Graph is equal to the price of GRT multiplied by the number of GRT in circulation.

The Graph Price FAQ

How is the price of GRT calculated?

GRT’s price at any given time is decided by the balance of supply and demand on exchanges. When more people are buying GRT than selling it, the price goes up, and when more are selling than buying, the price goes down.

Why is the price of GRT different on different cryptocurrency exchanges?

GRT’s price is based purely on trading as there is no standard global GRT price, so no one knows what it is “supposed” to cost. The trading volume and liquidity are different for each exchange and those differences are what affect the price.

What will GRT be worth in the future?

It’s impossible to make price predictions with any kind of absolute certainty, as a whole host of different factors could play a role in determining the future value of The Graph. However, as the price of GRT will likely be positively influenced by a rise in the total value of query fees, future expansion and adoption of The Graph network could boost GRT’s price.

Conclusion

Although The Graph hasn’t been around for very long, GRT’s price has already seen some significant changes, from being worth $0.03 at launch to reaching an all-time high of $2.88 just a couple of months later. The price movements haven’t been smooth, however, as GRT’s volatility can lead to surges and crashes.

Many different factors have played a role in determining the price of GRT, including staking demand from network participants, the amount of query fees being burned, and trends in the rest of the crypto market and wider economy. Its current valuation is derived from the balance of supply and demand in the markets and constantly changes.

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