Electric Capital tackles cross-chain data challenges with innovative NFT venture
Electric Capital, a venture capital firm focused on web3 technologies, is tackling two key challenges in the NFT market. Through a recent announcement by founder Avichal Garg, the firm introduced a new analytical platform called NFT Pulse. This platform, developed in collaboration with Allium Labs, aims to address the scarcity of cross-chain data and the lack of transparency in the turnover of digital collectibles.
NFT Pulse is designed to provide valuable insights into the activities of digital collectibles across different blockchain networks, including Solana, Polygon, and Bitcoin. However, it currently does not support Tezos and Coinbase’s Base. Garg highlighted the dominance of Bitcoin in terms of fee payments, suggesting potential advantages for exchanges operating within its ecosystem.
Data obtained from NFT Pulse has revealed significant user activity on networks such as Solana and Bitcoin, surpassing that of Ethereum. For example, a majority of Bitcoin-based NFT trades take place on Magic Eden, while OpenSea accounts for the majority of Polygon-based transactions. Additionally, Bitcoin’s network has experienced a surge in market share, reaching over 60% in March.
Electric Capital’s venture comes at a time when Ethereum-based NFT collections have been experiencing fluctuations in value and a decline in overall market activity. Trade 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 impacted by this downward trend, indicating potential shifts within the NFT market landscape.
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