In today’s digital-centric world, more businesses are looking to expand and improve their services through data analytics
Business leaders across industries are increasing their spending on data analytics, with 73% of business leaders planning to spend more on analytics than other software investments in the next 12 to 18 months.
Unfortunately, the supply of data professionals is currently low due to data science being a new field at universities and across the business world. And with data being used in many more applications universities are broadening their data science degrees to explore, analyze, monitor, manage, and visualize large data sets using the latest technology.
One such new technology that is being combined with data is the management of non-fungible tokens (NFTs), which have also become a new field that many companies are gravitating towards.
In this post we will examine how you can also leverage data analytics in NFT management through the following functions:
Gain Real-Time Insights Into the Market
The NFT market may seem highly unpredictable, but data analytics can help you understand these changes.
Web3 data analytic tools can track and monitor new NFTs and tokens across multiple blockchains at a faster rate. These Web3 tools use AI and machine learning components to conduct deep data analytics, allowing them to study changes in multiple blockchains and offer users real-time insights into the rapid developments of the market.
Through these tools, you can also gain a better understanding of market changes and get a head start on the newest NFTs available.
Assess Performance and Usage in Apps
NFTs will have a higher demand in the market, especially if they offer a valuable utility in applications.
To better understand their value, data analysts can collect, organize, and maintain data to spot NFT trends in applications and other platforms. These experts can mine and visualize data regarding the present performance of NFTs in gaming or social media apps, then conduct predictive modeling to help you assess their future demand on these platforms.
As a result, it’s easier for you to learn the best time for investing and selling NFTs in specific applications.
Understand the Marketplace Dynamics for NFTs
If you’re planning to sell NFT-based art, you can earn more money by studying marketplace dynamics through data analytics.
Researchers from Northeastern University and Central European University were able to learn more about the performance of NFT-based art in auctions by extracting data on 50,723 minted artworks and mapping out all their bidding amounts on the day of the sale.
Through data analytics, they learned that NFT artists could earn more and build a bigger reputation if they could attract a small group of collectors who like their niche. Likewise, you can learn more about the dynamics of sellers and collectors and gain more money from NFT-based art by leveraging data analytics.
Monitor Competition in the Market
The NFT marketplace can be very competitive, but you can gain the upper hand by using data analytics to understand your competition.
Our list of the top NFT analytics tools to use in 2023 includes NFTMetrics, which tracks the ownership statistics of collections available on the Ethereum and Binance Smart Chain blockchains.
The analytics tool also shows the volume of each NFT collection, allowing you to assess which ones garner high prices for each sale and which ones don’t. This tool helps you understand how your NFTs can fare in the market compared to what your competitors can offer.
Data analytics can help you discover trends and gain insights from a market that’s often considered unpredictable. By working with data analysts and using analytics tools, you can spot valuable opportunities that most people may not discover in the NFT market.
Article contributed by Rosalee Johns