Early next year, wallet analysis company Nansen will bring cryptocurrency intelligence tools to the Solana blockchain, CoinDesk reported. This will be their first non-EVM chain when it joins the platform in early 2022.
Nansen will start selecting Solana addresses for trading “alpha” early next year. Coverage will be added in the first quarter.
Making a business out of transparency
Nansen made a business out of transforming blockchain tech’s transparency into potentially lucrative trading signals for customers. They employ a combination of heuristics and public intel to “label” addresses connected to VC funds, hedge funds, banks, and whale investors. This is “smart money”, which others can follow.
Nansen clients had been asking for Solana coverage for a while, the company said. Solana’s DeFi ecosystem is worth over $15 billion, rendering it a potential gold mine for investors. What’s more, it has 1.2 million monthly active addresses.
Head of Institutional Sales Alexandre Caillol said:
It’s for the traders. They’re concerned about OK, where are the hot contracts that are coming in? Where are the yields?
It’s not that simple
That said, Nansen might have a hard time getting that info for Solana because the consensus mechanism used by the ecosystem differs from Nansen’s other covered networks. It is not really compatible with Ethereum-based smart contracts unlike blockchains like Binance Smart Chain, Fantom, and Polygon. Those three work well with the Ethereum Virtual Machine (EVM). Caillol added:
That’s why it takes us a little while to load Solana: because it’s a different technology.
He assured that there will soon be support for Arbitrum, Celo, Optimism, and Avalanche, all of which are all EVM chains.
Nansen adds coverage to Fantom
In October, Nansen announced they had extended coverage to the Fantom blockchain, casting light on a rapidly expanding decentralized finance (DeFi) ecosystem.
This coverage becomes fact at a time when Fantom is growing into a popular DeFi “sidechain” thanks to its low fees, fast settlement times, and higher yield farms and investments.
According to Nansen CEO Alex Svanevik, Fantom had a great achievement solving the issue of blockchain optimization. The fact that blockchains can only ever optimize two of the following – security, decentralization, and scalability – has long been known. Taking into account that the blockchain’s DeFi ecosystem is exhibiting signs of promising growth, he wrote to CoinDesk:
It is still early days in Fantom with just over 30 protocols on the blockchain, but I am very excited to see what’s to come.
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