Key Points
- Electric Capital is launching an analytical platform, NFT Pulse, to increase transparency in the NFT market.
- The platform will provide insights into NFT activities across various blockchain networks, but does not currently support Tezos and Coinbase’s Base.
Electric Capital, a venture capital firm specializing in web3, is exploring the analytical side of the non-fungible token (NFT) market to address two ongoing issues.
Introducing NFT Pulse
On March 22, Electric Capital’s founder Avichal Garg revealed a new analytical tool designed to tackle the lack of cross-chain data and transparency in the turnover of digital collectibles.
The new platform, named NFT Pulse, is a joint venture with Allium Labs. It aims to offer insights into the activities of digital collectibles on various blockchain networks, including Solana, Polygon, and Bitcoin. However, it currently does not support Tezos and Coinbase‘s Base.
Bitcoin’s Dominance and Market Activity
Garg highlighted the prevalence of Bitcoin in terms of fee payments, hinting at potential advantages for exchanges operating within its ecosystem.
NFT Pulse’s data shows significant user activity on networks like Solana and Bitcoin, exceeding that of Ethereum. For example, most Bitcoin-based NFT transactions take place on Magic Eden, while OpenSea handles the majority of Polygon-based transactions. Furthermore, Bitcoin’s network has seen a surge in market share, exceeding 60% in March.
Electric Capital’s initiative comes during a period of volatility in the value of Ethereum-based NFT collections and a decrease in overall market activity. Trading volumes on Ethereum-based platforms have fallen since January, with monthly revenue also witnessing a substantial decline. Platforms like OpenSea, X2Y2, and LooksRare have been impacted by this downward trend, indicating potential changes in the NFT market landscape.
