Electric Capital, a pioneering web3 investment firm, is exploring the analytical side of the NFT market to tackle two pressing issues.
In a recent discussion on Mar. 22, the founder of Electric Capital, Avichal Garg, introduced a cutting-edge analytical platform aimed at addressing the lack of cross-chain data and transparency in the trading of digital collectibles.
Dubbed NFT Pulse, this platform is a collaborative project with Allium Labs and aims to offer insights into the trends of digital collectibles across various blockchain networks such as Solana, Polygon, and Bitcoin. However, it currently does not support Tezos and Coinbase’s Base. Garg highlighted the prominence of Bitcoin in fee payments, hinting at potential advantages for exchanges operating within its ecosystem.
Recent data from NFT Pulse has unveiled a surge in user activity on networks like Solana and Bitcoin, surpassing that of Ethereum. Notably, the majority of Bitcoin-based NFT transactions take place on Magic Eden, while OpenSea dominates the Polygon network transactions. Furthermore, Bitcoin’s network has seen a notable increase in market share, exceeding 60% in March.
Electric Capital’s venture comes at a time of market fluctuations in Ethereum-based NFT collections and a decline in overall market activity. Trade volumes on Ethereum platforms have dwindled since January, with monthly revenue seeing a significant decline. Platforms like OpenSea, X2Y2, and LooksRare have felt the impact of this downward trend, signaling potential shifts in the NFT market landscape.