Connect with us
Active Currencies 14742
Market Cap $2,585,095,260,005.11
Bitcoin Share 51.50%
24h Market Cap Change $0.10

The Graph sees an uptrend in delegations; reasons aren’t very surprising

2min Read
The Graph sees an upward trend in delegations; reasons aren't very surprising

Share this article

  • The dominance of delegations on the Graph network has not waned.
  • GRT price, on the other hand, was tending toward the oversold zone, at press time.

The Graph [GRT] is a decentralized protocol that allows users to query and index data from numerous blockchains. These services are provided by a network of nodes known as Indexers.

Indexers must stake GRT tokens as collateral to join the network, and they can either stake their tokens or delegate them to third parties. Yet, the network is progressively seeing more delegators than stakeholders.


How many are 1,10,100 GRTs worth today


Understanding The Graph staking and delegation

Staking adds GRT tokens to the protocol as security to join the network as an Indexer. To ensure that they are motivated to act in the network’s best interests, Indexers stake their tokens, effectively locking them up as collateral. 

As opposed to this, delegation gives someone else the right to stake your GRT tokens on your behalf. It enables people to participate in the network and earn rewards even if they want to run something other than their own Indexer.

They lend their tokens to the Indexer to utilize as collateral when they delegate them to an Indexer.

The supremacy of delegations on The Graph 

According to Dune Analytics data, the network has always had more delegators than stakers. The prevalence of delegations may be due to how simple it is to hand over GRT tokens to others rather than dealing with the technicalities of staking.

As of the time of writing, there were about 1 billion delegates and 500 million stakeholder participants.

The Graph (GRT) stakes and delegations

Source: DuneAnalytics

According to statistics from staking rewards, the entire amount of GRT staked as of this writing was 26.41%. In addition, as of the time of writing, the staked GRT had a market value of nearly $311 million.

And according to information from CoinMarketCap, the entire market cap was over 990 million.


Realistic or not, here’s GRT market cap in BTC’s terms


Continuous slide for the Graph

Although The Graph network has outstanding stakes, its price could have been better lately. GRT was trading at a loss of more than 3%, around $0.11 as of the time of this writing on a daily timeframe.

The price trend of GRT was so underwhelming that it was approaching the oversold area. The relative Strength Index (RSI) line was far below the neutral line and below 40.

The Graph (GRT) price move

Source: TradingView

Share

Saman Waris works as a News Editor at AMBCrypto. She has always been fascinated by how the tides of finance and technology shape communities across demographics. Cryptocurrencies are of particular interest to Saman, with much of her writing centered around understanding how ideas like Momentum and Greater Fool theories apply to altcoins, specifically, memecoins. A graduate in history, Saman worked the sports beat before diving into crypto. Prior to joining AMBCrypto 2 years ago, Saman was a News Editor at Sportskeeda. This was preceded by her stint as Editor-in-Chief at EssentiallySports.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.