The Graph bets big on Web3 ecosystem, launches $250 million fund for projects it powers
- The Graph protocol recently announced a $250 million fund to power projects that use its technology.
- The Digital Currency Group and cryptocurrency investment groups have backed the querying technology and contributed to the fund.
- The Graph protocol’s native token has witnessed a drop in price amidst the marketwide bloodbath.
- Analysts note that The Graph protocol failed the 50-day moving average test and predicted further token consolidation.
The querying technology, Graph Protocol, is considered the center of the Web3 ecosystem. The protocol has launched a $250 million fund for projects developed using its technology.
The Graph fails to recover from drop below 50-day moving average
The Graph protocol, a querying technology, launched a $250 million fund with the Digital Currency Group, backed by NCG, HashKey Group, Gumi Cryptos Capital, Reciprocal Ventures, and Multicoin Capital. The launch of the fund is instrumental to the growth of Web3 projects powered by the Graph protocol's technology.
Proponents consider the Graph’s technology central to the Web3 ecosystem. The fund is for projects that develop solutions in the Web3 ecosystem using the Graph protocol’s querying technology.
The protocol index for blockchain organizations is keen on supporting the development of decentralized applications. The index has pledged funds to The Graph’s $250 million for projects in the Web3 ecosystem.
There has been a spike in an inflow of funds to Web3 projects since 2021. Data from CB insights revealed an increase of 713% in blockchain funding over the past year.
Despite the recent announcement, the cryptocurrency market has suffered a bloodbath with rising geopolitical tension. The Graph Protocol’s native token GRT price has posted 6% gains overnight.
Analysts believe that The Graph price drop below the 50-day moving average is a failure of the token’s test. The token is expected to consolidate further and continue its downtrend.
$GRT (USDT) big spot here on the underside MA 50 re-test as well as key horizontal S/R pic.twitter.com/HcWCUFHNEa
— Cheds (@BigCheds) February 16, 2022
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
