GRT Soars 13% As The Graph Prepares To Integrate Arbitrum

Dalmas Ngetich

2 years ago

3 mins read

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Recent reports reveal that the Graph, a platform used for indexing and querying blockchain data, is in the final stages of migrating to Arbitrum, a popular Ethereum layer-2 protocol. Following this announcement, GRT, the native token of the indexer, is up 13% in four days, per the candlestick arrangement in the daily chart.

The Graph Migrating To Arbitrum

The decision to migrate to Arbitrum follows a vote after a proposal was floated to move the indexer to the layer-2 platform.

The Graph Improvement Proposal received majority support from the community, necessitating the preparation for the eventual shift to Arbitrum, a layer-2 platform using roll-ups. Like any other off-chain solution, Arbitrum enables high transaction processing, increasing scalability.

With better transaction processing capability, transaction costs are lower, allowing high-demand protocols to launch while enjoying high-security levels since all transactions are rolled up and confirmed on the mainnet.

According to the development team, the goal is to enhance scalability, boost transaction processing speeds, and, most critically, reduce the costs of data indexing.

Tegan Kline, the CEO of one of The Graph’s development teams, Edge & Node, said the community chose Arbitrum due to its speed and affordability:

The Graph users have consistently sought solutions to improve gas efficiencies and other aspects of the network. After carefully evaluating available options, the ecosystem chose Arbitrum as the layer-2 scaling solution to provide speed and affordability to protocol developers and network participants.

Cheaper Querying

Although Ethereum has changed its fee bidding model following the implementation of the EIP-1559, transaction costs are still high, discouraging some users and protocols from using the mainnet.

Moreover, as visible by the high network utilization rate, the high demand for the mainnet means users wishing to transact on layer-1 must pay much more to approve their transactions.

On Arbitrum, The Graph holders will also delegate GRT tokens more cheaply. Delegated tokens are staked with Indexers, who index and query data.

Following this transition, Indexers stand to receive more GRT rewards since transacting on Arbitrum is relatively cheaper. According to L2 Fees, a fee tracker, every transfer on Arbitrum costs $0.08, multiples cheaper than Ethereum, which stands at $1.24.

It is yet to be seen how The Graph will capitalize on “data accessibility,” which Steven Goldfeder, the CEO of Offchain Labs, said Arbitrum offers.

However, what’s clear is that The Graph provides a solution for users wishing to query blockchain data more efficiently. Public blockchains such as Ethereum or Bitcoin are designed to store data securely. However, they can make it challenging to retrieve this data reliably.

GRT Price On June 14| Source: GRTUSDT On Binance, TradingView

GRT is trading at $0.10, up 13% from this week’s lows when writing on June 14.

Feature Image From Canva, Chart From TradingView

Dalmas Ngetich

Dalmas, a seasoned crypto reporter, brings a unique perspective to the industry. His specialization in NFTs, blockchain, DeFi, and blockchain news for NewsBTC, combined with a background in mechanical engineering and over a decade of experience in journalism, has allowed him to craft over 10,000 news and feature articles over the past eight years. His diverse range of topics, including technology, Forex, and finance, reflects his comprehensive understanding of the crypto landscape.

His technical expertise and analytical skills have been recognized and featured by leading news outlets such as Investing.com, CoinTelegraph, Entrepreneur, Forbes, and other authority sites. Notably, he broke key news, including the Ripple and MoneyGram partnership, cementing his position as a thought leader in crypto.
The news exploded. Over 100,000 people devoured this meticulously crafted report, from seasoned investors to curious newcomers. His analysis wasn't just dry facts and figures; it crackled with insight, dissecting the implications of the partnership and its potential impact on the future of finance.

His deep understanding of the financial markets, technological advancements, and blockchain developments has made him a respected voice in the industry.

Dalmas is also the founder of BTC-Pulse, a crypto news site, further demonstrating his commitment to the field. He firmly believes that DeFi and NFTs are here to stay and will continue to drive financial inclusion.

Coming from Nairobi, Kenya, it is easy to see the source of his inspiration: Across Africa, millions lack access to traditional banks. Remote villages, limited documentation, and high minimum balances create insurmountable barriers.

DeFi, not just Maker or Aave, for example, but think of Bitcoin and USDT, cuts out the middleman. Forget banks with their limitations.
Even so, DeFi isn't a magic solution. The continent still struggles with reliable internet access, and educational campaigns highlighting the benefits of this wonderful solution are insufficient. Moreover, even for those interested, understanding DeFi can look like learning a new language.

Dalmas is here to help make the tech easy to understand and digestible, even for beginners.
The story of DeFi in Africa is still being written. Challenges abound, but the promise of a more inclusive financial future is a powerful motivator. With innovation and collaboration, Dalmas firmly believes that DeFi could become the key to unlocking Africa's full economic potential.
This possibility and its immense value motivate Dalmas to continue breaking key DeFi innovations and more across the globe. His engineering background further enhances his ability to deliver well-thought-out pieces that blend technical insight with clear, impactful reporting.

Beyond his professional achievements, Dalmas is deeply passionate about technology and politics. Policies drive adoption, and being at the forefront and keeping up with how they evolve is crucial for the sphere to mature.

When Dalmas is not closely monitoring the latest crypto events, he can be found in nature, exploring the picturesque countryside, and traveling with his family and friends. His love for adventure and discovery perfectly complements his investigative and reporting skills.
You can connect with Dalmas on X: @Dalmas_Ngetich, or contact him on Telegram @Dalmas_Ngetich.

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