The Graph: Can this development push GRT to achieve new highs in the long-term
The Graph [GRT] appears to be having a rough time making a comeback after the slap down it received last week. Its attempts at a rally at the start of August demonstrated some promise for the bulls. However, its current performance suggests that it might close the month at a lower price than its price at the start of August.
GRT did manage a 10% recovery as compared to its price of 26 August of $0.11, from its conclusion last week at $0.099. A dismal recovery compared to the 32% margin by which it fell in the previous week. This outcome paints a not so favorable picture for GRT bulls in the short term.
The cryptocurrency has already started experiencing some outflows according to the Money Flow Index (MFI). This is after encountering friction at the 50-day moving average.
GRT’s uninspiring performance goes hand-in-hand with the lack of growth in the number of active addresses. The Graph average active addresses in the last four weeks was around 645. There was very minimal deviation from this average during the month and a notable drop below the same average in the last six days.
The relatively low growth in the number of active addresses reflects the lack of incentive. An unsurprising outcome considering that The Graph’s network growth has slowed down and is currently at its lowest levels in the last four weeks. It underscores the investor hesitation to buy back even at a discount from last week’s highs. GRT’s volatility index has also taken a hit in the last five days, thus enforcing the same narrative.
The silver lining
There is some good news despite GRT’s dampened short-term sentiment. The Graph just unveiled its plans in preparation for the next phase of growth. The blockchain network just rolled out a new program called the Migration Infrastructure Providers (MIP) program.
The Graph Network is growing to support new chains ?
Announcing the launch of MIPs, a new incentivized program to welcome the multi-chain future! ??
The first chain after Ethereum to be indexed?
— The Graph (@graphprotocol) August 25, 2022
According to the official announcement, the program will facilitate the creation of new chains and subgraphs. The advantage is that it might pave way for more liquidity into the Graph protocol and support more utility. A positive outcome would be increased demand for GRT in the future, thus boosting its long-term outlook.