Analytics tool Nansen recently released its Non-Fungible Token (NFT) Leaderboard and Wallet Profiler, an interesting and comprehensive set of tools for examining the behavior of top collectors while giving insight into the best performing wallets and collections in ERC721.
While completely broadening the options for representable tokens on the Ether (ETH) blockchain, ERC721 tokens, better known as NFTs, enable tokenized ownership of any arbitrary data.
In contrast to the traditional art market, the blockchain is able to preserve individual privacy while acting as a public database with the potential to reveal market trends and buyer strategies.
Nansen analyzes over 90 million tokenized ethereum wallets and their activity, enabling users to make more informed decisions based on the investment strategies of larger entities by tracking exchanges, token teams, and funds.
With the launch of the NFT Charts, the blockchain analytics platform has become particularly attractive to a particular type of cryptocurrency investor, the NFT collector.
We spoke with Alex Svanevik, CEO and co-founder of Nansen, who explained how those seeking insight into the best performing NFT collectors or collections can use their new tool to master strategic navigation through the new and rapidly expanding NFT ecosystem.
Have you received any feedback from listed collectors already?
AS: Some people have commented that our numbers seem a bit low, but that seems to be mostly due to the fact that we don’t count the profits from unpurchased NFTs. For example, if an account is an artist creating NFTs to sell, or is getting NFTs for free, we don’t count their income.
This is a key decision for us because it allows us to focus on savvy investors, not just well-connected individuals.
What were the main technical challenges you faced when developing the ranking tool and how did they lead to an appealing front-end concept?
AS: The NFT space is fast-paced and full of different standards. We wanted to address the lack of transparency that makes many collectors feel like they are going into projects blind.
With this in mind, our biggest challenge was ingesting the vast amount of data on the blockchain into a centralized and clear dashboard. We tested the ranking tool with different parameters to make sure it surfaced the most noteworthy wallets and had to make some tough decisions about what type of information to include.
The biggest challenge is ongoing: making sure we get the deepest and broadest NFT coverage without losing focus on what really matters to users.
In order to continue to develop and promote your market analysis as a strategic portfolio management tool, have you set the criteria for listing an account on the NFT chart to be at least ten NFTs bought and sold from three series?
AS: Yes. This also helps clear signals. Anyone can get lucky once, but consistently picking winners shows the depth of expertise. For those close to the data and active in the NFT scene, there is something like an informal leaderboard.
In this space, figures like some notable influencers are widely respected for their capital and ability to focus on successful projects.
We find that by limiting access to those with more than 10 NFTs and 3 collections, the rankings become more reflective of these market makers.