Intrepid traders, blockchain sleuths, and memecoin enthusiasts keeping an eye on the Solana ecosystem will soon be able to take advantage of in-depth analysis tools launched by Nansen.
The blockchain analytics platform known for its Web3 wallet labeling and data analysis tools has officially launched support for the Solana blockchain.
🤔Why is on-chain analysis so difficult? @solana?
TL;DR follows: @nansen_ai CEO @ASvanevik 👇
Solana is a high-throughput blockchain and has “enormous data volumes.”
We caught up with Nansen’s co-founder this week to explain two things. pic.twitter.com/XSQ9ZcQkjU
— Gareth Jenkinson (@gazza_jenks) October 17, 2024
The new product provides advanced tools to track wallet movements, monitor token balances, and explore Solana’s rapidly growing decentralized finance (DeFi) and non-fungible token (NFT) ecosystem. Cointelegraph spoke exclusively with Nansen co-founder Alex Svanevik ahead of the launch that will be available to Nansen users.
Svanevik told Cointelegraph:
“TL;DR is that we are adding Solana to Nansen. It took a long time to come, but it finally arrived. “We spent an enormous amount of time producing this.”
As Svanevik explained, Nansen users have access to token and wallet analytics at a sophisticated level.
“You’ll be able to see which addresses actually make the most money, have the highest P&L, and which addresses you might want to follow and potentially copy transactions from.” Svanevik said.
Solana analysis is “very difficult”
Nansen’s Ethereum Virtual Machine (EVM) blockchain analysis tool has been around for several years and offers a variety of tools for tracking tokens, wallets, and traders. Wondering where Vitalik Buterin is sending his tokens? Nansen has a label on the wallet.
With the emergence of Solana in early 2020, Layer 1 was touted as a potential “Ethereum killer.” In a previous exclusive interview with Cointelegraph, Solana co-founder Anatoly Yakovenko said that the protocol has something different about it. reason Focuses on high-throughput, low-latency blockchain use cases.
relevant: Man and Machine: Nansen’s Analysis of Slowly Labeling the World’s Wallets
On a technical level, Solana is significantly different from Ethereum. This means that providing in-depth data analytics is no small task, and according to Svanevik, it took Nansen over a year to complete the new integration.
“Solana is a completely different chain internally and the differences in data volume and EVM make it really difficult to integrate.”
Svanevik explained that because Solana is not an EVM, the data format and classification are completely different from Ethereum-based chains. As a result, Nansen was unable to apply the same technology as the Ethereum layer-2 protocol to integrate the data.
“The second reason is that there is a huge amount of data. Solana is a popular chain and has very high throughput. There has been an explosion of activity on Solana over the past few years, generating enormous amounts of data,” said Svanevik.
relevant: Solana’s Birth Story: Anatoly Yakovenko’s Vision for a High-Performance Blockchain
Nansen’s CEO added that the challenge is to deliver analytics in a low-latency manner, which requires a lot of time tuning queries. Part of this effort was to ensure that Nansen’s Solana analytics provide a complete history of on-chain activity, not just a snapshot of a specific time period.
Mastery of Meme Coin?
The launch of Nansen’s Solana integration comes at an interesting time. Memecoin has been a hot topic in 2024, with hundreds of millions of dollars being invested in mainly speculative community-launched tokens and projects.
When asked whether the integration of Solana analytics could have a significant impact on the ability of speculative investors to amplify memecoin returns, Svanevik said such a tool could give an edge to primarily emotion-driven moves.
“Memecoins, to be honest, there are no guiding principles and no white paper to read. There is nothing intelligible about the actual coin. The only thing you should care about is what people are doing with these coins on-chain.”
Svanevik added that by being able to see which addresses a user has purchased a particular token from, investors can avoid certain tokens and look for others with greater potential returns.
magazine: Memecoins: A betrayal of more than just cryptocurrencies… Or its true purpose?