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The Graph recently released its analysis for Quarter 2, 2023. The indexing protocol witnessed a mixed experience throughout the quarter. Let’s take a quick look at the report and its primary factors:
Overview of The Graph in Q2 2023
According to the report, The Graph published 1,082 subgraphs from its hosted service. These subgraphs were deployed to its mainnet, which is a decentralized network. The activity boosted The Graph’s QoQ (Quarter on Quarter) by 39%.
In addition, the protocol is continuing its ongoing Layer 2 migration to Arbitrum. The objective of the migration is to offer a gas-efficient and seamless decentralized data experience to its users.
The Graph witnessed a 48% dip in its quarter-on-quarter demand-side revenue throughout the quarter. This was driven by DeFi apps optimizing the query volumes while governance activities experienced an overall dip.
Similarly, the indexing protocol witnessed a decrease in usage from decentralized infrastructure. Meanwhile, its revenue from indexing rewards managed to register a 3% boost.
The QoQ analysis showed the indexing rewards breaking through the 9 million-dollar mark. Of these 9 million, the delegators earned 64% in Quarter 2.
The MIPs incentive program also played a crucial role in The Graph’s Q2 analysis. The protocol witnessed a 29% dip in its active Indexers on a QoQ basis. At the same time, the curators and delegators noted a minor 3% and 2% growth, respectively.
Challenges and Limitations
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The biggest issue The Graph encountered was in its QoQ demand-side revenue. The protocol lost over 48% of its value due to a decrease in governance activities.
At the same time, the use of its decentralized framework also lost value in Q2. With The Graph aiming to migrate its subgraphs to the mainnet, demand-side revenue is expected to rise in the coming quarter.
The Graph will aim to generate more revenue via query fees in Q3. The active indexers program also proved to be a dud for The Graph, as the protocol lost 29% on a QoQ basis. The dip in the metric occurred due to 325 indexers being inactive in Q2.
The Future Roadmap of The Graph (GRT)
The Graph managed to complete phase 2 of its Arbitrum migration. The migration will help the protocol manage a gas-efficient and seamless data experience.
With GIP 0021’s approval, over 5% of The Graph’s indexing rewards are now available on Arbitrum. The protocol aims to complete Phase 3 in the coming quarter, enabling express migration to Arbitrum One.
Similarly, The Graph is aiming to expand its support for Fantom and Polygon. The MIPs incentive program will play a massive role in this situation.
GRT’s Market Analysis and Price Trends
Despite the mixed results acquired by The Graph in Q2, GRT is trading at a positive 1.39% in the past 24 hours. The token is priced at $0.1103 with a market cap of $1,006,298,805.
As for its price trend, GRT has been on a downward slope since July started. The coin peaked on July 4 at a price of 0.1415, only to drop in value until now.
Expert Opinions and Predictions for The Graph
Based on our GRT coin price prediction, the outlook appears promising, with an anticipated average price of $0.201 in the forthcoming quarters. However, this forecast relies on the successful completion of Phase 3 migration to Arbitrum One. Should this milestone be accomplished effectively, there is potential for GRT to reach an average price of $0.342 by the year 2023.
Conclusion
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The recent Q2 analysis report by The Graph sent stakeholders mixed signals. Despite losing value in several sections, the protocol managed to make some progress. However, The Graph plans to conclude its Phase 3 Arbitrum One migration by the end of the third quarter.
If the protocol can do so, it will be able to resolve several of its ongoing issues. Despite its mixed performance, The Graph is anticipated to maintain its market value in future quarters in light of GRT’s price increase.
