DeFi

The Graph market cap surges to $500M in less than 2 days

  • The Graph records over $500 million in its market cap in the space of 2 days.
  • The protocol could become a major player in the DeFi space as it already Powers Uniswap.

The Graph has seen its market cap rise to over $500 million in the space of 2 days. The crypto asset is used to query data from blockchain and it was built on the Ethereum network.

The crypto coin was launched on December 18 and its market cap grew from over $150 million to over $500 million on the 19th of December. The price of the asset rose from $0.135 to $0.569 which translates to a rise of over 300% within the period.

Josh Rager, a top crypto analyst, told his Twitter followers to pay a very close attention to the digital asset. According to him, many people do not know that Uniswap runs on The Graph and neither do they know that the coin has the potential to be a top player in the DeFi sector.

In years past, it was almost impossible to get data of top quality from blockchain. Then, the only way around it was to operate a proprietary indexing server. These servers needed top engineering work and also required loads of hardware resources.



In addition to all of this, the servers also broke the necessary security properties that were required for decentralization.

How The Graph operates

The Graph depends on participants to provide the consumers with access to blockchain data. The participants here are in three parts and they are named indexers, delegators and curators.

An indexer is a node operator that stakes the crypto asset to the room for services like indexing and query processing. Indexers are able to generate returns from the query fees.

Delegators are those who stake on behalf of the indexers. They have no wish to run a Node and they play an important role in the network’s security. They are able to earn through their indexer fees and rewards accrued to them.

While a curator is a developer who indexers depend on for signals on which APIs or subgraph should they index on the Protocol.

Currently, the technology powering The Graph is being used to run some of the top DeFi projects like Uniswap, Aave and Synthetix

News Source

Advertisement
Advertisement