Graph protocol graphic
Source: The Graph

What Makes GRT a Good Long-Term Crypto Investment

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Jul. 19 2021, Published 8:56 a.m. ET

GRT is the official cryptocurrency of The Graph, a Google-like information indexing service for the blockchain world. Although GRT has been sliding, it remains popular with large investors—more than 60 percent of its total supply is controlled by 10 holders. Is GRT crypto a good long-term investment, and should you accumulate on the dip?

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At $0.55, GRT is 80 percent below its all-time high of $2.88 reached in Feb. 2021. If you’re looking for the next cryptocurrency to explode, you might want to buy the dip in the Graph token.

Is GRT's supply capped?

Many investors treat Bitcoin as digital gold because its fixed supply makes it scarce. Also, many investors favor cryptocurrencies with a capped supply because they can protect against inflation.

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The Graph token has an initial supply cap of 10 billion. There are 2.9 billion GRT coins in circulation.

gc
Source: CoinMarketCap
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GRT's price prediction

At its current price, GRT would need to gain 430 percent to rebound to its all-time high of $2.88, or 40 percent per month to recover to that peak by the end of 2021. With compounded monthly growth of 10 percent, GRT could reach $170 in five years (or 30,000 percent above its current price).

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Is GRT a good long-term investment?

The rise of meme coins like Shiba Inu may have spurred a hit-and-run approach to crypto investing. However, GRT deserves a look as a long-term investment. The Graph is undergoing a major, ShapeShift-type transformation, changing from a centralized organization to a decentralized entity.

The goal of the shift is to remove the risk of a single point of failure. With the risk of outages eliminated, Graph should become a more valuable resource for developers, opening up more earning opportunities for independent curators on the network and boosting demand for Graph resources. As it’s the token that powers The Graph's network, GRT would be set to benefit.

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