Data Accessibility Issues in the NFT Market

Data accessibility issues are a major problem for the NFT industry. Here is an example of how a data analysis tool is enhancing market liquidity and transparency.

Non-fungible tokens (NFTs) have developed into a separate market inside the blockchain space, but they still face a number of obstacles before aiming for widespread adoption. Data accessibility, or more specifically, the lack of it, is one of the major problems in the area. The NFT market is still in its infancy compared to the larger crypto business, and there are only a few tools available for tracking NFT collections, investigating specific statistics, and examining market patterns.

To start, there aren’t any standardized data formats or metadata available on the NFT market. Because to this, it may be challenging for NFT buyers and sellers to exchange and analyze data pertaining to ownership history, provenance, and other crucial information. Without useful data, it can be difficult for consumers to make educated judgments about their purchases and for NFT developers to set fair prices for their products.

The market for NFTs is extremely fragmented, with hundreds of different collections and single NFTs available for purchase, which is one of the causes of the current predicament. This makes it difficult for any one resource to offer an in-depth analysis of the market as a whole.

Consumers can still rely on blockchain analytics tools like Nansen or DappRadar, although these tools are not focused on the NFT industry and may not provide comprehensive coverage of it.

How gaining access to data can help the NFT market
Increasing data accessibility in the NFT sector can lead to a more developed and effective market where buyers and sellers can make defensible judgments based on a comprehensive understanding of the sector. This can then spur market expansion and innovation, increasing adoption and engagement over time.

Dedicated NFT analytical resources could benefit the market in the following ways:

-Market analysis – Buyers and sellers can more effectively evaluate the market and spot new trends and opportunities if they have access to pertinent information about NFT collections and market trends.
Transparency would increase if data on NFT ownership history, origin, and other information were easily accessible. This can assist buyers in making better judgments.
-Liquidity – Improved data accessibility may make it simpler for buyers and sellers to connect and exchange NFTs, which will increase liquidity. This may increase prospects for investors and collectors while also indirectly increasing market liquidity.
-Price discovery – better data accessibility and liquidity can in turn assist creators in determining a reasonable price for their NFTs.
-Standardized data formats — standardized metadata and data formats can make it simpler to compare and analyze various NFT marketplaces and collections. As a result, market participants may find it simpler to navigate and the market may become more consistent and predictable.

NFT analytics — Meeting demand in an underserved market with NFT analytics
Developers have a great potential to provide solutions as a result of the enormous need for trustworthy NFT analytics tools. In this competition, several businesses have already jumped out in front.

Chief data scientist at bitsCrunch Saravanan Jaichandaran shared:

“Data accessibility is still a major problem, despite NFTs’ recent rise to prominence. Realizing this, we developed Unleash NFTs to provide trustworthy insights that enable consumers to make more educated decisions about their NFT investments, hence enhancing the ecosystem’s trust and transparency.”

A crucial component of the NFT market’s development and maturation is data accessibility. The highly fragmented nature of the NFT sector, together with the absence of common data formats and metadata, make it difficult for buyers and sellers to move about in this new market.

Thankfully, there are indications that things are changing for the better. In order to boost market liquidity and give greater transparency and better market research, new platforms and tools are appearing. Moreover, initiatives are being made to create metadata and data formats that are standardized in order to improve market predictability and uniformity.