chart [GRT] After taking a hit last week, it seems difficult to make a comeback. Its rebound attempt in early August showed some hope for the bulls. However, its current performance suggests it could close below the price it was in early August.
GRT did achieve a 10% recovery from its price of $0.11 on August 26, closing last week at $0.099. The recovery was dismal compared to the previous week’s 32% drop. This result paints a less favorable picture for GRT bulls in the short term.
Source: TradingView
According to the Money Flow Index (MFI), some outflows from cryptocurrencies have already begun. This is after the 50-day moving average encountered friction.
The lackluster performance of GRT is inseparable from the lack of growth in the number of active addresses. The average active addresses of Graph over the past 4 weeks are around 645. The deviation from this average is very small this month and has been significantly below the same average over the past 6 days.
Source: Santiment
The relatively low growth in the number of active addresses reflects a lack of incentives. This result is not surprising considering The Graph’s network growth has slowed and is currently at its lowest level in the past four weeks. That underscores the hesitancy of investors to buy back even at prices below last week’s highs. GRT’s VIX has also taken a beating over the past five days, thus carrying out the same narrative.
Source: Santiment
silver lining
Despite the gloomy short-term sentiment for GRT, there is some good news. The Graph has just unveiled plans to prepare for the next phase of growth.The blockchain network has just launched a Migration Infrastructure Provider (MIP) program.
Graph Network is evolving to support new chains 🛸
Announcing the launch of MIPs, a new incentive program for the multi-chain future! 🧑‍🚀
The first chain after Ethereum to be indexed?
✨ @gnosischain ✨https://t.co/faPwdWSjUp
— Graph (@graphprotocol) August 25, 2022
According to the official announcement, the program will facilitate the creation of new chains and subgraphs. The advantage is that it may pave the way for more liquidity and support more utilities for the Graph protocol. A positive outcome would be increased demand for GRT in the future, boosting its long-term prospects.
