Daily Mover: Blockchain Analytics Industry Landscape
What companies are currently servicing the blockchain space?
We collaborated with independent investment bank Canaccord Genuity to provide an overview of the blockchain analytics industry. The full report is available in their Digital Assets Quarterly for Q2, 2020.
The landscape shows all of the companies providing tools and services in the blockchain space as of May 2020. The order from left to right is “up the stack” following the usage of the solutions as they move from infrastructure to specific customer-oriented outcomes.
For our CEO’s take on each company listed, check out this blog post.
On the left are node providers who help users run a blockchain server. As the blockchain ecosystem has expanded we’ve seen an increasing number of them also provide analytics and some API access to raw underlying data available on these nodes.
Bison Trails seems to be building the most extensible and robust platform on the market, which unlike its competitors’ specialized solutions, works with any blockchain implementation. Bison Trails raised the most funding, twice as much as Alchemy and six times as much as Blockdaemon.
Moving to the right follows companies which are extracting or utilizing blockchain data and framing it to serve different groups, from crypto traders and investors to regulatory bodies, and blockchain organizations themselves.
Block Explorers: Block explorers, like other services in the blockchain space, have evolved to include additional features. For instance, most block explorers will show the number of unconfirmed transactions, and an estimation of the mining difficulty. Blockscout also provides analytics data, API, and smart contract tools pertaining to xDai.
Trading Data: This segment of the market has been consolidating, as centralized exchanges expand their product offering, with Kraken having acquired Cryptowatch and Bittrex acquiring Tradedash. TradeBlock is among the most sophisticated trading data platforms and has raised more than $50M to date.
Price Distribution: Coin Metrics, founded in 2013, has raised the most money in the price distribution category), with Kaiko focusing on datasets from exchanges and Nomics focusing more on fundamental data.
APIs for Streaming Data: APIs have become a favored format for data for anyone from investors to developer applications to use and surface raw data. Most API providers came out in 2017, and raised a similar amount of funding, around 2M.
Data Aggregation: Data Aggregators all compete to become the go-to platform for accurate data and unbiased information. Their users’ trust is their most valuable commodity - but can it be traded?
In recent news, Binance, the world’s biggest cryptocurrency exchange, acquired CoinMarketCap for $400M. The move undoubtedly undermines CMC’s impartiality and is likely to threaten rival exchanges who fear the possibility of Binance harvesting data from CMC. “That data is now being given to a competitor with surveillance abilities. It’s unlikely that other exchanges will want to see Binance aggregating and monetizing their own data,” said Nomics CEO Clay Collins.
News & Research
With thousands of cryptocurrencies being traded, users are increasingly in need of unbiased guidance to make the right decisions. At the same time, the type of news users want to receive is diversifying, as the number of blockchain use cases and applications multiplies. As a result, news outlets are forced to cover many different topics and to deliver it in varying forms, so as to enable users to customize their experience as much as possible.
The crypto market has a very foreign and complicated infrastructure, which requires a plethora of tools - from sentiment tracking to more in depth investor insights - in order to interpret the data.
Sentiment tracking: The belief that the cryptocurrency market is void of traditional fundamentals, and more susceptible to “alternative data” such as news and social media sentiment, continues to hold its own in 2020. The Tie for instance was founded this year, while CryptoMood came out in 2019. There is continued interest in leveraging machine learning techniques such as sentiment analysis to detect possible correlations with the price of cryptocurrencies and digital tokens.
Portfolio Tracking: Portfolio trackers are also evolving in nature and expanding their service offerings and target audiences. For instance, Blox, which came several years after Gem and Blockfolio were founded (in 2013 and 2014 respectively), managed to raise a lot more funding by focusing on servicing accounting and finance teams instead of individual users.
Regulatory uncertainty hangs like a cloud over the industry as it aims to attract conventional investors. As a result, we see governments and financial institutions spending considerable amounts of money to fund compliance solutions globally.
Blockchain Intelligence: The marketplace for data analytics and business intelligence software is gushing with innovative providers and advanced technologies. Blockchain intelligence providers are mostly based in the U.S. and appeared in 2017. The sophistication of behavioral modeling has coincided with the mastering of crypto projects in the space. As teams move from development into more user acquisition phases, the demand for more advanced intelligence solutions has increased.
Token Economics: Token economics solutions are very powerful and crucial to the blockchain ecosystem. As the market starts to see the effects of token offerings, the need for more sophisticated ways to evaluate economic policy within the confines of blockchain ecosystems has increased demand for this expertise.