Electric Capital, a prominent web3 venture capital firm, is venturing into the realm of NFT analytics to tackle two pressing challenges within the market.
In a recent Twitter thread on March 22nd, Avichal Garg, the founder of Electric Capital, unveiled a groundbreaking analytical platform aimed at addressing the scarcity of cross-chain data and enhancing transparency in the realm of digital collectibles.
Named NFT Pulse, this platform is a collaborative effort between Electric Capital and Allium Labs, aimed at providing comprehensive insights into the activities surrounding digital collectibles across various blockchain networks. While currently lacking support for Tezos and Coinbase’s Base, the platform covers networks such as Solana, Polygon, and Bitcoin.
Garg emphasized the significance of Bitcoin within this ecosystem, particularly in terms of fee payments, suggesting potential advantages for exchanges operating within its network.
Data from NFT Pulse highlights notable user activity on networks like Solana and Bitcoin, surpassing that of Ethereum. For instance, Magic Eden dominates Bitcoin-based NFT trades, while OpenSea leads in Polygon-based transactions. Additionally, Bitcoin’s network has seen a surge in market share, exceeding 60% in March.
Electric Capital’s venture comes at a crucial time amid fluctuations in the value of Ethereum-based NFT collections and a decline in overall market activity. Trade volumes on Ethereum-based platforms have dwindled since January, accompanied by a notable decrease in monthly revenue. Platforms like OpenSea, X2Y2, and LooksRare have been impacted by this downturn, signaling potential shifts within the NFT market landscape.