Crypto investment data market gathers momentum
The cryptodata industry is merging unique elements of the crypto market’s on-chain data with more conventional financial data. It has, however, yet to overcome core challenges in data processing.
Which cryptocurrencies should we invest in? In the stock market, the viability of investments is determined via two primary methods: 'fundamental (value) investment' and 'momentum investment.' Fundamental investment determines the investment target by judging a company's performance, intrinsic value and growth potential, through indicators such as a company's sales, profits, return on equity (ROE), financial structure, and market share. It determines the investment destination by utilizing historical data surrounding stock values to analyze and predict market fluctuations.
These methods, however, are difficult to apply to crypto investments, due to the young age of many crypto projects, which are often just years or even months old. The crypto market suffers from a striking lack of data that could be used to judge the fundamentals of a company or track past market trends.
Fortunately, the Web3 industry has recently taken note of this blind spot, which has prompted the rapid growth of the market data market, which very much parallels the traditional financial sector, and ‘on-chain data,’ a unique facet of the blockchain industry.
