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Electric Capital, a web3 venture capital firm, is delving into the analytical side of the nft market to address two unresolved questions.
In a March 22 X thread, Electric Capital founder Avichal Garg introduced a new analytics platform designed to address cross-chain data scarcity and billing transparency for digital collectibles.
The platform, called nft Pulse, is a collaborative effort with Allium Labs and seeks to provide insights into the activities of digital collectibles on various blockchain networks, including Solana, Polygon and bitcoin. However, there is no support for Tezos and Coinbase's Base, at least for now. Garg noted bitcoin's dominance in terms of fee payments, suggesting potential benefits for exchanges operating within its ecosystem:
“It is surprising to see bitcoin dominate in terms of people willing to pay fees. Naturally, the exchanges that are important in those ecosystems will work well.” Avichal Garg
nft Pulse data reveals significant user activity on networks like Solana and bitcoin, surpassing that of ethereum. For example, the majority of bitcoin-based nft transactions occur on Magic Eden, while OpenSea accounts for the majority of Polygon-based transactions. Additionally, the bitcoin network has witnessed an increase in its market share, reaching over 60% in March.
Electric Capital's venture comes amid fluctuations in the value of ethereum-based nft collections and a decline in overall market activity. Trading volumes on ethereum-based platforms have decreased since January and monthly revenue has also seen a significant drop. Platforms like OpenSea, X2Y2, and LooksRare have been affected by this bearish trend, indicating possible changes in the nft market landscape.
