Skip to content Skip to sidebar Skip to footer

Opinions expressed by Entrepreneur the contributors are theirs.

Most people don’t understand the importance of When it comes to . The phenomenal rise of Non-Fungible Tokens (NFT), distributed ledgers and cryptocurrencies have had many benefits for the global market.

At the same time, the pace of growth is proving difficult to follow. Even people at the forefront of cryptocurrency are finding it difficult to keep up with the pace of innovation. The NFT had only one 38,000% growth rate in 2021 compared to 2020.

This is where web3 data analytics comes in. Just as tools are available in the legacy trading arena of fiat currency products, similar tools are to be made available in cryptocurrency markets. newly established currency.

Here are a few reasons why data analytics is actually essential to web3 trading and — they are an essential key to the new global market that is being built on distributed ledgers.

Related: What You Need to Know About Ethereum’s Role in Web 3.0 and the Metaverse

Reason #1: A rapid rate of change

Within traditional markets, change and innovation are less evident. This is due to the strict regulations in force in various sectors such as energy, housing, health care, etc.

While this stabilizes the market, it stifles growth and prevents real change from occurring, which ultimately leads to the centralization of wealth. The greatest percentage of new millionaires is made in times of crisis. Indeed, rapid change signals an opportunity for those who can take advantage of it.

Web3 data analysis offers this opportunity. These analytics can track and monitor the large influx of new NFTs and new tokens across multiple blockchains. This allows you to have a real-time overview of what is really happening in the markets. It further allows traders to spot real trends before they happen.

It is simply not possible to track this rate of change without using in-depth data analytics that utilize AI and machine learning components. We could soon enter a machine-to-machine with sophisticated blockchains (called “Tangles” or “DAGs”). Data analysis is necessary to monitor these transactions and generate meaningful insights.

Related: 3 Ways to Build Lasting Wealth in the Metaverse

Reason #2: Increased reliance on social media

Social sites like YouTube, , Twitter and Facebook are the primary sources of information for determining coin valuation. The Dogecoin price increased by 50% thanks to a tweet from and a lot increase or decrease according to these riders. At the time of this writing, Solana is currently doing well after approvals from and Robert Kiyosaki.

Social media platforms are also the main avenues for marketing and advertising new crypto projects. “Shilling” is still a common term in the crypto markets today, with job opportunities for Telegram/Discord “professionals” willing to shill a particular coin (i.e. hype constantly to keep people interested).

Analytical tools can help sort out real and fake social media activity that can lead to a real rise or fall in a given coin in the short, medium, and long term. A lot of information is available on these mega social media platforms, pending proper sorting and classification, which can only be done through Web3 data analysis.

Related: A New Frontier: Lessons Learned from Exploring NFTs, the Metaverse, and More

Reason #3: Avoid Web3 scams

Currently, the cryptocurrency industry runs on hype and hysteria, as a whole. And it’s quite easy to fall prey to a scam. A common scheme is to take an existing part and “shill” it. The scammers don’t do any work, they just promote an existing coin, marketing it on multiple media channels. Investors act on this false information, and when the coin reaches a certain price, the scammers sell their share, which they got at a much lower price.

This is one of many types of scams in the crypto markets (too many to go into detail here). A powerful investment tool backed by data analytics will prevent newcomers from falling victim to the many forms of crime.

It is imperative that people realize that a large portion of new coins are either scams or have no long term viability. People only hear about profits made from a certain number of coins, while those that fail are rarely mentioned (unless they are very large, like the $60 Million Anubis DAO Scandal).

Investing tools powered by Web3 Analytics are arguably the best way to gain protection in a market notorious for its lack of investor security. A Web3 toolkit can provide simple due diligence protocols to indicate if a given part or project is unsafe.

Related: 7 ways to protect yourself in the world of NFTs

It is already possible to make smart crypto investments

Fortunately, the tools that offer in-depth data analysis to make informed Web3 investments are already available. An example is Defy the trends, a comprehensive toolkit that empowers users to make data-driven investment decisions in crypto and NFT. It can be likened to a Bloomberg terminal for crypto and NFTs. The toolkit aggregates millions of data points into easy-to-understand indicators that allow you to get a comprehensive view of the market in one place.

The millions of people now entering the crypto space do not understand this. Defy Trends and other Web3 analytical frameworks will generate the information needed to make informed decisions, instead of hoping and praying for a coin to go up based on rumors and hearsay.

Ultimately, this is the power of data analytics applied to Web3 investment markets, and its importance will only increase as this market continues to grow.

Source link

Leave a comment