At the 2023 European Blockchain Convention, a panel of data experts discussed strategies for gaining insights into the crypto market. The panel, titled “The Data-Driven Investor: Strategies for Crypto Market Intelligence,” featured Elliot Garreffa of AddZest, Lars Bakke Krogvig of Nansen, and Ambre Soubiran of Kaiko.
The panelists emphasized the importance of both on-chain and off-chain data sources for understanding crypto market dynamics. According to Soubiran, combining centralized exchange data on order books and trading volumes with blockchain analytics provides a more complete picture. She highlighted liquidity data as being particularly valuable for assessing risk.
Krogvig noted that on-chain data reveals information about investor behavior and market sentiment that is not visible in exchange data. For example, tracking wallet movements can provide signals about impending price impacts.
The panelists agreed that no one data source provides a full view of the crypto markets. Rather, it is important to leverage both quantitative data and qualitative insights. Potential additional data sources mentioned included social media, developer activity metrics and alternative data feeds.
The panelists concluded that on-chain data analytics will play an increasingly important role in bringing transparency to real-world asset tokenization and other blockchain adoption trends. While centralized providers still have a place, disintermediating processes via crypto can build trust. Overall, combining the best of centralized and decentralized worlds will be key to the future of crypto market intelligence.