One of today’s most sensational news stories concerns the token of crypto analytics company The Graph (GRT), which is up 55% in the last seven days.
What is The Graph
The Graph is an indexing protocol that has seen its value grow so much and reach a market capitalization of $1 billion.
The Graph offers the ability for users to use a complex infrastructure to store on-chain data from a variety of blockchains.
Graph collects data from 26 different blockchains including Ethereum, Near, Arbitrium, Optimism, Polygon, Avalanche, Celo, Fantom, Moonbeam and IPFS.
The crypto company derives its income from inflationary indexing premiums and fees on queries paid by on-chain data users.
This evidence was leaked from an ad hoc report prepared this month by Messari on The Graph itself.
Crypto news: trend of The Graph (GRT) and the ChatGPT factor
Growing trend of “most valuable AI and big data crypto projects and tokens” on CoinMarketCap highlights how there is an investment rush driven by the success of ChatGPT.
The Graph is no exception and is benefiting from the flurry of liquidity coming into the AI and crypto world by trying to keep the bullish trend going as long as possible.
The token gains 55% from a week ago and is great news for the whole The Graph project.
According to CoinMarketCap, GRT, the native token of The Graph, has reached and then surpassed $1 billion in capitalization.
The achievement is mainly due to two influencing factors in the Market cap.
First major boost comes from the platform’s performance in 2022 and in these first forty days of 2023.
The first half of last year had seen the token achieve good results then lost again in the second half of the year.
In December, GRT had given good signs that then exploded in 2023 also driven by the second major cause of its value growth.
The +55% result is also and not only due to the mass adoption of ChatGPT, a kind of Google 3.0/Alexa based AI (Artificial Intelligence) that solves problems and gives answers like an all-rounder due to its great information retrieval ability.
benefit in cascade
ChatGPT has brought AI and data learning into vogue, and by being part of this industry, The Graph in turn has benefited in cascade from user investment.
In the previous market peak, GRT had succeeded in surpassing $5 billion in market value but then had to fall back down the rankings with the crypto meltdown of 2021.
Back in Q4 of 2022, The Graph had triggered the bullish trend that continues to be seen today.
In the fourth quarter of last year, it had recorded +66% in gains on query fees.
The figure can also be explained in terms of money (US dollars), a 265% increase year-on-year.
According to the February report, query-related fees:
“they should continue to increase as more subgraphs are migrated to the mainnet over the next few quarters.”
The majority of analysts questioned about The Graph, GRT has been able to ride this bull run thanks largely to the wake provided by the Artificial Intelligence (AI) sector.
According to CoinMarketCap, among the “most valuable AI and big data crypto projects and tokens,” The Graph is the leading platform in the market cap.
GenTwo crypto analyst Pablo Jodar, recently stated the following about it:
“I think it’s related to the AI stock rally, due to the ChatGPT effect.”
Meanwhile, another $50 million entered the ecosystem’s coffers thanks to a cash raise arranged by Tiger Global Management (TGM) in January.