As the growing digital economy undergoes a transition from Web2 to Web3, oracle and data providers are becoming an increasingly important sector for ensuring the reliable sharing and transfer of information.
The Graph (GRT) is one protocol that is spearheading the integration of blockchain technology with data management and retrieval through the creation of open APIs known as subgraphs.
Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.3155 on March 13, GRT has climbed 38.6% to a daily high of $0.44 on March 15 where it is now attempting to flip this major resistance level into support.
There are three underlying reasons behind GRT's price rally: the ongoing migration of subgraphs to the Graph mainnet, the launch of grants to help projects build on or migrate to the decentralized network and the upcoming Graph Day 2022, which will take place on June 2.
Migration of subgraphs
The biggest development surrounding GRT is the ongoing migration of Ethereum subgraphs to the decentralized mainnet of the Graph network.
The Graph ecosystem is championing decentralization as Ethereum subgraphs continue to migrate to The Graph Network— The Graph (@graphprotocol) March 10, 2022
Here’s an update shedding more context on the state of migration, query fees, & resources to help you migrate your subgraph today! https://t.co/Z26rrISXas
Subgraphs are open application programming interfaces, also known as APIs, that are designed to make data more accessible and can be composed into a global graph of all the world’s public information.
According to The Graph, subgraph migrations are up 30% quarter-over-quarter. Currently, 282 subgraphs have completed the migration process, with more undergoing the process each week.
Projects that have made the switch represent a variety of the top sectors in the crypto ecosystem, including decentralized finance applications, music, art, analytics, wallets, nonfungible tokens, video streaming service and social media platforms.
A second development that has helped provide a boost to GRT and mainnet migrations was the release of The Graph Grants by The Graph Foundation.
For a limited time The Graph Foundation is awarding grants to help migrate Ethereum subgraphs to the decentralized network.— The Graph (@graphprotocol) March 11, 2022
Improve the reliability of your dapp with The Graph Network! Grants will be reduced by the end of March so apply now ⬇️ https://t.co/01xommj13D
The grant process gives interested parties the ability to receive funding as they migrate to the decentralized mainnet. The grants cover costs related to gas fees, technical know-how, migrating expenses and marketing. Migrating protocols are also eligible to receive support from solutions engineers from within the community.
Protocols interested in migrating are encouraged to apply for a grant before the end of March as funding amounts will be gradually reduced and eventually phased out.
Graph Day 2022
A third factor bringing extra attention to The Graph was the announcement that the project will be hosting this year's “Graph Day” beginning June 2 in San Francisco.
The event includes a day of presentations from leading protocol and DApp developers in the crypto industry who are focused on expanding the Web3 community and will be followed by a three-day hackathon where hackers and developers will attempt to find vulnerabilities in the project. This is the first official hackathon for The Graph and will take place between June 3–5.
VORTECS™ data from Cointelegraph Markets Pro began to detect a bullish outlook for GRT on March 7, prior to the recent price rise.
The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historical and current market conditions derived from a combination of data points, including market sentiment, trading volume, recent price movements and Twitter activity.
As seen in the chart above, the VORTECS™ Score for GRT hit a high of 73 on March 7, around five days before the price increased 38% over a three-day period.
The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph.com. Every investment and trading move involves risk, you should conduct your own research when making a decision.