GRT increases by 13% when graph is ready to integrate Arbitrum

recent reports Turns out that Graph, a popular Ethereum layer-2 protocol used to index and query blockchain data, is in the final stages of migrating to Arbitrum. Following this announcement, the index’s native token, GRT, is up 13% in four days, according to the candlestick setup on the daily chart.

Migrating Graph to Arbitrum

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

The graph improvement proposal received majority support from the community, requiring the preparation of final changes to Arbitrum, a layer-2 platform that uses roll-up. Like any other off-chain solution, Arbitrum enables high transaction processing, increasing scalability.

With improved transaction processing capability, transaction costs are lower, allowing high-demand protocols to be launched while enjoying a higher level of security, as all transactions are rolled up and is verified on the mainnet.

According to the development team, the goal is to increase scalability, boost transaction processing speed, and, most critically, reduce the cost of data indexing.

Tegan Kline, CEO of Edge and Node, one of The Graph’s development teams, Said The community chose Arbitrum because of its speed and affordability:

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

cheap inquiry

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

Furthermore, as seen by the high network utilization The high demand for the rate, mainnet, means that users wishing to transact on Layer-1 must pay more to have their transactions approved.

On Arbitrum, Graph holders will hand over GRT tokens more cheaply. The delegated tokens are staked with indexers, which index and query the data.

Following this change, indexers stand to receive higher GRT rewards as transactions on Arbitrum are relatively cheaper. per L2 fee, one fee tracker, each Transfer The price of Arbitrum is $0.08, which is several times cheaper than Ethereum, which is $1.24.

Steven Goldfeder, CEO of Arbitrum Offchain Labs, said it remains to be seen how The Graph will take advantage of “data accessibility”.

What is clear, however, is that Graph offers a solution for users looking to query blockchain data more efficiently. Public blockchains like Ethereum or Bitcoin are designed to securely store data. However, they can make it challenging to reliably recover this data.

GRT is trading at $0.10, up 13% from this week’s low on June 14 at the time of writing.

Feature image from Canva, chart from TradingView