Covalent CEO: There is an "unresolved backlog" of unfilled Web3 data roles

Demand for on-chain analysts is expected to increase further with the growth of web3 data versus web2 data over the next 20-30 years , says Ganesh of Covalent Swami.

Ganesh Swami, CEO of blockchain data aggregator Covalent, says there is still “intense demand” for on-chain data analysts, which is not yet being met.

Speaking to Cointelegraph, Swami said analysts are in "intense demand" as there is a "real need" for data experts to "make sense" of on-chain data, explaining:

"There is an unresolved backlog of unfilled data-driven roles. This demand demonstrates the willingness of blockchain and non-blockchain companies to make sense of their own and their competitors' on-chain data." /p>

Swami explained that while the demand for on-chain data analysts has yet to eclipse their Web2 counterpart, the growth in the use of stablecoins, loans, and decentralized finance (DeFi) products over the past of the past 18 months has resulted in growing demand for the job title.

Swami said that like data analysts in traditional industries, on-chain data analysts can be expected to analyze a company's "reach, retention, and revenue" metrics, except, in this case , intelligence would lie on on-chain data across multiple blockchains.

For example, in the case of an NFT project, Swami explained that "reach" would look at "how many people are minting your tokens" and "retention" would relate to "what is the average holding period of these tokens" which is important whether investors are using them for "quick turnarounds" or "hanging on to them" for the long term.

“Revenue” is about sales, with blockchain analysts being able to determine whether sales are “focused on a handful of sales or spread across multiple collections,” he explained.

But the role does not exist. Swami said that "to create better protocols and better serve users", on-chain analysts can "target users for marketing or user acquisition purposes" by looking at what happened on the protocols competitors, because the blockchain leaves what Swami likes to call "historical breadcrumb trail."

Swami also predicted that "Web3 data will overtake Web2 data" at some point in the next 20 to 30 years, and that Web3 data analysis "will be much, much larger than the current market of business intelligence, which is currently worth hundreds of billions...