Electric Capital, a web3 venture capital firm, is delving into the analytical aspect of the NFT market to address two unresolved issues.
In an X thread on Mar. 22, Electric Capital founder Avichal Garg unveiled a new analytical platform designed to address the scarcity of cross-chain data and transparency within the turnover of digital collectibles.
Named NFT Pulse, the platform is a collaborative effort with Allium Labs and seeks to provide insights into the activities of digital collectibles across various blockchain networks, including Solana, Polygon, and Bitcoin. However, no support for Tezos and Coinbase’s Base, but at least for now. Garg noted the dominance of Bitcoin in terms of fee payments, suggesting potential benefits for exchanges operating within its ecosystem:
“Amazing to see Bitcoin dominate in terms of people willing to pay fees. Naturally the exchanges that are big in those ecosystems will do well.” Avichal Garg
Data from NFT Pulse reveals significant user activity on networks like Solana and Bitcoin, surpassing that of Ethereum. For instance, a majority of Bitcoin-based NFT trades occur on Magic Eden, while OpenSea accounts for the majority of Polygon-based transactions. Moreover, Bitcoin’s network has witnessed a surge in market share, reaching over 60% in March.
Electric Capital’s venture arrives amid fluctuations in the value of Ethereum-based NFT collections and a decline in overall market activity. Trade volumes on Ethereum-based platforms have decreased since January, with monthly revenue also experiencing a significant drop. Platforms like OpenSea, X2Y2, and LooksRare have been affected by this downtrend, signaling potential shifts within the NFT market landscape.
