In the often confusing world of crypto investing, obtaining enough reliable information to make your investment decisions can feel like navigating a maze. Crypto is notoriously volatile, and coupled with sometimes impenetrable terminology and unreliable data, investing in this exciting asset can feel like too much of a risk. Our team were all early adopters in the crypto space, and sometimes we even feel like we need a new guide to help us decipher signals from the blockchain.
Thankfully, as crypto becomes more popular, analytical platforms that are designed to filter data and provide actionable insights have become greater in number. One of those platforms is Nansen, an onchain analytical platform that promises to empower investors by giving them the data and tools they need to succeed. But does it live up to that claim?
In this article, we’ll take a deep dive into Nansen, exploring its key features and putting them to the test. We’ll examine how the platform could inform your investment strategy and whether it could give you a competitive edge. Whether you’re a seasoned crypto pro or a curious newcomer, this article will give you a better idea of Nansen and allow you to decide if it’s the right platform for you.
Where Does Nansen Get Its Data?
Nansen was founded in 2019 to provide analytics for the Ethereum blockchain. Since then, the platform’s data has come from the Blockchain ETL (extract, transform, load) project, an open-source initiative that was spearheaded by Nansen’s founders. The project gathers raw blockchain data and processes it into a format that is suitable for analysis. By gathering its data from the Blockchain ETL, Nansen accesses information directly from various blockchain networks.
The platform tracks a wide array of onchain activities, including transactions, smart contract interactions, and token movements. This data is then processed through Nansen’s proprietary labelling system, which categorizes wallets and identifies key players like exchanges, funds, and smart money.
A word of caution: While Nansen’s connection to Blockchain ETL gives it a strong advantage in terms of data quality and depth, it’s important to note that the platform’s analyses are still interpretations. As with any analytical tool, you should source information from a variety of sources before making investment decisions.
What Are Nansen’s Key Features?
Nansen states that its suite of tools and features addresses the growing demand for deeper insights into onchain activity. We had a good rummage around the site, and below are the features that stood out to us:
Nansen 2
We thought that Nansen 2 was a significant upgrade to the original platform. It builds upon the platform’s core strengths with enhanced features, a more intuitive interface, and faster access to data.
Here are some of the key improvements:
- Faster alpha: Quicker access to insights
- Unified platform: Consolidated onchain analytical tools
- Enhanced interface: More user-friendly
- Deeper analysis: A more granular analysis
Nansen Alpha
Nansen Alpha is a membership program that connects investors, founders, and investment experts. It’s a place for members to share insights, network, and potentially gain a competitive edge in the market. Membership is limited in number, as the platform aims to keep the quality of curated information in this space high.
Nansen API
The Nansen API enables developers and businesses to directly access its data and analytics. By integrating the API into their applications or platforms, users can leverage Nansen’s insights to create custom solutions. The API can track token movement, monitor wallet activity, analyze exchange flows, and identify trends in the market.
Use Cases
While Nansen’s features and tools have potential, their true value lies in their practical application. To understand how Nansen can empower investors, it’s essential to see these tools in action. So that’s what we did; the results are below:
Following smart money
We noticed a sudden surge in the price of a lesser-known token and used Nansen to investigate. Using the Smart Money Tracker, we discovered that several prominent wallets known for their successful investments had recently bought large amounts of the token. This onchain activity, coupled with Nansen’s analysis of the token’s fundamentals, piqued our interest, and we invested, resulting in a substantial profit.
NFT trends
One of our team, an NFT collector, used Nansen’s NFT Paradise to watch transaction volumes, whale activity, and emerging patterns in the NFT market. They identified a promising new collection early on and invested at a fraction of its later market value.
Mitigating risk
Another member of our team, who is rather cautious, used Nansen’s Wallet Profiler to assess various protocols. They checked transaction histories and smart contract interactions of different yield farming pools and identified several potential red flags.
What Is Nansen’s Pricing?
Nansen’s tiered pricing structure caters to all crypto investors and is as follows:
- Free: Access to basic onchain data analytics, including AI-powered Smart Search (in beta), basic onchain signals, and basic wallet and entity analytics.
- Pioneer (USD 99/month): Access to Nansen Labels for over 300 million addresses across 10+ chains, insights into smart money activity, advanced analytics, and customizable features.
- Professional (USD 999/month): Everything in Pioneer plus full access to all features, institutional-grade research, CSV downloads, early access to new releases, and a dedicated Customer Success Manager. Annual subscribers may also apply to join the Alpha Community.
- Enterprise (bespoke pricing): Includes a comprehensive blockchain data repository, integrations with enterprise IT systems, real-time portfolio APIs, third-party data enrichment, and dedicated customer support.
All plans can be paid for with either traditional payment methods or crypto, and there’s a 23% discount for paying annually.
Conclusion
We think Nansen is an excellent tool for crypto investors, and its access to Blockchain ETL data is second to none. We believe most investors will love its user-friendly site and find its analytics and tools helpful.
Our tests showed that the platform’s features are robust, and we think Nansen 2 is a significant upgrade from the original. Although the higher-level price tiers may seem a little pricey to some, the free and Pioneer plans offer good functionality, and we’d happily recommend Nansen to our fellow crypto enthusiasts.