The Graph is described as an indexing protocol constructed to offer knowledge on blockchain networks, storage networks, and P2P platforms. Through using “subgraphs,” anybody can extract knowledge from a blockchain, course of it, and retailer it so it may be simply queried through GraphQL.
According to a brand new report, Messari reviewed the efficiency of the decentralized protocol within the final quarter. The blockchain analytics agency thought of the protocol’s energetic subgraphs, the community’s income in question charges, and the exercise of the community’s indexers, delegators, and curators.
So let’s check out the findings contained within the report.
Active subgraphs on the community
Upon its launch, The Graph initially deployed a free hosted service whereby required subgraphs by main tasks within the Web3 ecosystem may very well be obtained.
In Q1 2021, The Graph launched its first subgraph on the mainnet. Thus, making the protocol “a hybrid of its hosted service and decentralized mainnet” as per Messari.
According to Messari’s report, the protocol had 392 energetic subgraphs within the final quarter on the decentralized mainnet. This represented a 24% spike from the index recorded in Q1 2022.
On a year-over-year (YoY) foundation, energetic subgraphs on The Graph’s mainnet have grown by 2,350%.
As for the protocol’s hosted service, Messari discovered that it supported over 24,000 subgraphs within the final quarter.
Network’s income in question charges
As against its free hosted service, acquiring knowledge from the protocol’s decentralized mainnet comes with a payment. These charges are also known as “query fees.”
Because question charges are priced in USD however paid within the protocol’s native token, Messari discovered that “query fee revenue earned in GRT is affected by both network activity and GRT price volatility.”
According to Messari, within the final quarter,
“Revenue from query fees increased 36x in GRT terms in Q2 2022 relative to the previous quarter. The increased subgraph usage somewhat offset the GRT price drop in USD terms. With more subgraphs migrating to the mainnet, query fee activity should continue to increase for at least the next two quarters. This may further lead to increased revenue in GRT terms.”
Additionally, to make sure that The Graph runs effectively, the protocol has indexers (who function the nodes on the Network), delegators (who delegate the GRT token to indexers, entitling them to a portion of the indexer’s question charges and rewards), and curators (who decide the subgraphs that The Graph Network ought to index).
According to Messari, within the final quarter, the variety of indexers on the community grew by 7%. Delegators grew by 6% and curators by 4%.
GRT token in Q2
At the start of the quarter, the value of GRT was pegged at $0.48. However, within the 90-day interval underneath overview, the token’s worth declined steadily to be at $0.92 on the finish of the quarter. In that interval, the token dropped by 80%.
Within the identical interval, GRT’s market capitalization dropped from $2.28 billion to $635.07 million.