Digital Currency Group (DCG), Multicoin Capital, Reciprocal Ventures, and other investors introduced a $205 million ecosystem fund to support developers building on The Graph. The protocol currently powers numerous decentralized applications built on Ethereum, NEAR, Polygon, Avalanche, Fantom, Binance Smart Chain, and more.
The Joint $205M Fund
According to a document seen by CryptoPotato, several prominent names in the cryptocurrency industry joined forces to establish the multimillion fund and assist with The Graph’s future progress. These include the US-based Digital Currency Group, the investment firm Multicoin Capital, gumi Cryptos Capital, NGC Ventures, HashKey, and Reciprocal Ventures.
The market capitalization of decentralized applications is expected to exceed $360 billion by 2027. As such, developers need efficient tools to cope with that increase. Craig Burel – an executive at Reciprocal Ventures – said many of the nowadays blockchain apps that people interact with are powered by centralized platforms.
“To expedite that future, we have come together with some of the biggest players in the crypto industry to provide strategic capital and resources to developers aligned with The Graph’s mission to bring Web3 to fruition,” he outlined.
HashKey Group, which already contributes to The Graph ecosystem, will support infrastructure-related products. It will also guide dApps and network participants looking to access institutional markets. Deng Chao – HashKey’s Managing Director – opined that developers need decentralized Web3 solutions.
According to Miko Matsumura – General Partner of gumi Cryptos Capital – The Graph is in a “unique position to support the upcoming Cambrian explosion of Web3 applications.”
The fund will support teams developing DeFi protocols, NFT applications, DAOs, Metaverse initiatives, and more. The companies will invest in projects built on decentralized infrastructure. They will also guide developers in creating subgraphs, indexer tooling, dApp tooling, or products focused on growing The Graph community.
What Is The Graph?
The Graph is a decentralized protocol for indexing and querying data from blockchains. Developers build and publish open Application Programming Interfaces (APIs) that applications can query using GraphQL. The protocol supports data from 31 different networks, including Ethereum, NEAR, Polygon, Avalanche, Celo, Fantom, Binance Smart Chain, and more.
In July 2021, The Graph introduced its self-service experience for developers. Since then, over 200 subgraphs have migrated to the network, with over 160 indexers serving subgraph queries. The Graph coin (GRT) is the native token of the protocol.