According to Ganesh Swami of Covalent, as Web3 data surpasses Web2 data in the coming 20-30 years, there will be an even greater demand for on-chain analysts.
According to Ganesh Swami, CEO of Covalent, a blockchain data aggregator, there is still an "intense demand" for on-chain data analysts that has not been met.
Swami explained to Crypto Express that there is a "real need" for data experts to "make sense" of on-chain data, which is why analysts are in "intense demand."
There is a backlog of data-driven roles that haven't been filled.This demand demonstrates the eagerness of both blockchain and non-blockchain businesses to comprehend their own and rivals' on-chain data.
Swami explained that the rise in stablecoin usage, lending, and decentralized finance (DeFi) products over the past 18 months has led to an increase in demand for the job title, despite the fact that demand for on-chain data analysts has yet to surpass that of Web2 analysts.
On-chain data analysts, according to Swami, can anticipate analyzing a company's "reach, retention, and revenue" metrics, with the exception that the intelligence would be found in on-chain data across multiple blockchains.
For instance, Swami explained that "reach" would look at "how many people mint your tokens" and "retention" would look at "what is the average holding period for these tokens," which is important to know whether investors are using these for "quick flips" or "holding on to them" long term. In the case of an NFT project, Swami said, "reach" would look at "how many people mint your tokens."
"Revenue" refers to sales, which can be "concentrated through a handful of sales or distributed across multiple collections" by blockchain analysts, he explained.
However, the role does not exist.According to Swami, the blockchain leaves behind what he refers to as "historical breadcrumbs," allowing on-chain analysts to "cross-target users for marketing purposes or for user acquisition purposes" in order to "make better protocols and better serve users."
Web3 data analysis, according to Swami, "will be much, much bigger than the current business intelligence market, which is currently worth hundreds of billions of dollars," and "Web3 data will exceed Web2 data" at some point in the next 20-30 years.
Covalent will start a four-week "Data Alchemist Boot-Camp" on Oct. 19 with the goal of training over 1,000 people in on-chain analytics to fill the current shortage of on-chain analysts.
The only requirement for attending our Data Alchemist Bootcamp is an interest in Web3;Swami advised, "Come with that, and we'll pay you to learn."
However, Swami predicted that, rather than Web3 native projects themselves, on-chain analysts will likely find more job opportunities in Web2 companies that are entering Web3 in the near future:
"It will be faster and better for a Web2 company with hundreds of millions of players or users to add over Web3 experiences," according to the report. "What we can see, immediately, what we have a line of sight to is Web2 businesses adding a Web3 experience."
He continued, "To serve dashboards and metrics management, Adidas and Samsung now have departments of metaverse data scientists and analysts."