- The Graph price has moved sideways in the past few weeks.
- The number of subgraphs in its ecosystem has been on an uptrend.
- Revenue in the ecosystem has dropped sharply from last year
The Graph (GRT) price has tracked that of other cryptocurrencies in the past few weeks. GRT was trading at $0.1067 on Tuesday, down by over 25% from the highest level in July and 53% from its highest point this year.
Ecosystem woes continue
The Graph is one of the most popular blockchain projects among developers. It is an indexing protocol that provides developers with tools and data to build projects at a faster pace. These creators pay to query these on-chain data known as subgraphs.
Because of its business operations, The Graph does well when the blockchain industry is thriving. When the sector is doing well, the platform attracts more developers, who pay for their subgraphs.
Now, there are signs that the revenue metrics in the ecosystem is waning. Data compiled by Messari shows that the ecosystem had a difficult second quarter even as revenue from indexing rewards jumped to over $9.068 million from Q1’s $8.82 million. Revenue dropped from over $17.6 million in the same quarter last year.
Another metric showed that revenue from usage fee dropped from over $70.4k in Q2’22 to $46.5k in Q2’23. On the positive side, the number of active subgraphs jumped from 392 in Q2’22 to 1,082. It moved from 776 in the first quarter while the number of delegators and curators jumped to 11.4k and 2,640k, respectively. In its report, Messari said:
“Over the next several quarters, the number of deployed subgraphs on The Graph Mainnet is expected to increase. The Graph community aims to migrate all subgraphs from the hosted service to its mainnet, as more chains integrate with the decentralized network.”
The future of The Graph will depend on the number of developers who will embrace the network. This number will likely depend on the performance of Bitcoin and other cryptocurrencies like ETH, DOT, and Avalanche.
The Graph price prediction
The daily chart shows that the GRT crypto price has moved sideways in the past few days. This price is at an important level since it was the lowest swing on March 10 of this year.
The Graph price has moved slightly below the 25-day and 50-day moving averages while the Average True Range (ATR) has dropped to the lowest level since January 16th. Therefore, the outlook for the coin will be bearish, with the next key support to watch being at $0.088, ~16.61% below the current level.
