Research Summary
The report analyzes the performance of The Graph Network in Q2’24, highlighting its increased demand, revenue growth, and the introduction of AI-based services. It also discusses the network’s transition to a decentralized system and the introduction of the Sunrise Upgrade Program.
Key Takeaways
Increased Demand and Revenue Growth
- Record High Query Demand: The Graph Network experienced an all-time high of over 2.9 billion queries in Q2’24, marking an 84% increase from Q1’24. This surge in demand led to a 160% QoQ growth in demand-side revenue, reaching $113,000.
- Subgraphs Transition: By the end of Q2’24, 7,370 subgraphs had transitioned from the hosted service to The Graph Network, a 278% increase from Q1’24. This transition contributed to the increased query volume and revenue.
AI-Based Services Introduction
- AI Infrastructure: Semiotic Labs introduced two AI-based services, Inference and Agent, leveraging The Graph’s historical data and decentralized infrastructure. These services aim to expand The Graph’s use cases beyond data indexing.
Sunrise of Decentralized Data
- Decentralization Plan: The Graph is implementing a plan to upgrade all subgraphs to its network. The plan, known as the Sunrise of Decentralized Data, is being executed in three phases: Sunray, Sunbeam, and Sunrise. By the end of Q2’24, the Sunbeam phase had been completed.
Sunrise Upgrade Program
- Support for Upgrade: The Graph introduced the Sunrise Upgrade Program to support the Sunrise of Decentralized Data. The Graph Foundation allocated up to 4 million GRT ($840,000 as of June 30, 2024) to be earned by the program’s participants.
Actionable Insights
- Monitor the Impact of AI Services: The introduction of AI-based services by Semiotic Labs could potentially expand The Graph’s use cases. Stakeholders should monitor the adoption and impact of these services on the network’s performance.
- Assess the Effect of Decentralization: The transition of subgraphs to The Graph Network is a significant shift towards decentralization. It’s crucial to assess how this transition impacts the network’s query volume, revenue, and overall performance.
- Understand the Implications of the Sunrise Upgrade Program: The Sunrise Upgrade Program could incentivize more participants to contribute to The Graph’s network. Understanding the program’s implications could provide insights into the network’s future growth and development.
