Ganesh Swami, CEO of blockchain data aggregator Covalent, says there is still “extensive demand” for on-chain data analysts, which is yet to be met.
Speaking to Cointelegraph, Swami said analysts are in “heavy demand” because there is a “real need” for data experts to “understand” the data on the chain, explaining:
“There is an unresolved backlog of non-blockchain, data-driven roles. This demand is a testament to how careful both blockchain and non-blockchain companies are to understand their own data and that of their on-chain competitors.”
Swami explained that while the demand for on-chain data analysts has not yet surpassed their Web2 counterpart, the growth in the use of stablecoins, lending and decentralized finance (DeFi) products over the past 18 months has increased the demand for the job title.
Swami said that like data analysts in traditional industries, blockchain data analysts can expect to analyze “a company’s reach, retention, and revenue,” except in this case the intelligence will be found in blockchain data across multiple blockchains.
For example, in the case of the NFT project, Swami explained that “reach” would look at “number of people putting up your tokens” and “retention” would relate to “the average holding period of these tokens” which is important for knowing what If investors use these “quick swings” or “hold on” for the long term.
He explained that “revenue” relates to sales – where blockchain analysts can determine whether sales are “concentrated through a handful of sales or spread across multiple groups.”
But the role does not exist. Swami said that to “make better protocols and better serve users,” chain analysts can “target users for marketing or user acquisition purposes” by reviewing what happened on competitors’ protocols, leaving the blockchain what Swami likes to connect with. “Historic Breadcrumbs”.
Swami also predicted that “Web3 data will surpass Web2 data” at some point in the next 20-30 years, and that Web3 data analytics “will be much larger than the current business intelligence market, which is currently worth hundreds of billions of dollars.”
To address the current shortage of on-chain analysts, Covalent is set to launch a four-week “Data Alchemist Boot-Camp” on October 19, which aims to train more than 1,000 individuals in on-chain analytics.
“The only prerequisite for joining a data chemist training camp is the desire to learn about Web3; bring it and we will pay you to learn,” Swami said.
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But in the short term, Swami said the chain’s analysts are likely to find more jobs in Web2 companies moving to Web3, rather than in the original Web3 projects themselves:
“It would be faster and better for a Web2 company that has hundreds of millions of players or users to add Web3 experiences, and what we can see right away is that Web2 companies are adding Web3 experiences.”
