In the ever-evolving world of blockchain and cryptocurrency, deciphering on-chain metrics can be a daunting task for many. In a recent interview with CryptoPotato at Token2049 in Singapore, Alex Svanevik, the CEO of Nansen, sheds light on how his platform is bringing clarity to the complex crypto landscape. Established in 2019, Nansen is dedicated to tracking on-chain movements, offering users a clearer picture of the crypto realm.

Svanevik’s journey into the crypto space is a fascinating one, marked by unexpected twists and turns. He candidly recalls his initial reservations about Bitcoin back in 2013, believing it was primarily used by money launderers and criminals. However, it was Ethereum that captured his attention in 2017 due to its potential for “permissionless innovation.” Svanevik humorously remarks, “if someone’s going to make that new currency, maybe they will build it on Ethereum.”

His crypto journey began as a data science manager in Barcelona but took an unexpected turn with a layoff in Hong Kong. This turn of events led him into crypto consulting and eventually led to the creation of Nansen.

Nansen’s unique capabilities set it apart in the world of on-chain data tracking. One of its earliest features, “Token God Mode,” allows users to plug in a token and see its buyers. However, what truly makes Nansen stand out is its ability to label wallet addresses, providing insights into the entities represented by these addresses.

Nansen has carved a niche for itself amidst the DeFi boom of 2020 and the surging popularity of NFTs. Svanevik describes Nansen as an “information super app for anything on-chain.” When questioned about future on-chain trends, Svanevik’s enthusiasm is palpable. He is particularly bullish on the future of Web3 gaming and mentions platforms like Friend.tech as potential game-changers. He anticipates that many Web3 gaming projects that raised money in 2021 and 2022 are now ready to be launched. Additionally, Svanevik is keeping an eye on the tokenization of real-world assets, such as T-bills.

However, the path to mass adoption of crypto is filled with challenges. Svanevik identifies regulatory hurdles and user experience as the primary obstacles. He emphasizes the need for more regulatory clarity, especially in the United States, and bluntly states that the user experience is still far from ideal, citing issues like dealing with seed phrases as a significant barrier for newcomers to the crypto space.

Regarding the current state of NFTs, Svanevik acknowledges that NFT volumes have declined, and the market caps of various NFT collections have suffered. However, he remains optimistic about their future, stressing that NFTs will make a comeback but in a different form. He points out that the current perception of NFTs as “cartoon animal JPEGs” is just the tip of the iceberg. The infrastructure being developed around NFTs has broader utility, including the tokenization of real-world assets.

Svanevik elaborates on this by suggesting that you could tokenize your home as an NFT and use it as collateral for borrowing. This highlights the immense potential of NFT technology beyond the realm of digital art.

NFTs are not limited to traditional use cases. Svanevik mentions that in Singapore, the regulator MAS wrote a white paper on “purpose-bound money (PBMs),” which refers to money that can only be used for a specific purpose. This showcases how blockchain-based solutions are evolving and capturing governmental interest.

At the heart of all this analysis and data lies Nansen’s platform. Its primary focus is to identify trends and ensure they are not fleeting “pump and dump” scenarios. Nansen achieves this through a combination of on-chain data and a vast social network. Svanevik explains that understanding what will be popular in the future requires speaking with VCs, angel investors, and builders. On-chain data reveals present behaviors, while these conversations offer insights into what lies ahead.

Nansen’s extensive tracking capabilities demonstrate its commitment to comprehensive analytics. However, distinguishing between wallets and users remains a challenge. Svanevik aptly likens on-chain addresses to “cookies or sessions” in web analytics, providing an approximation but not a definitive user count.

As the interview concludes, Alex teases about “Nansen 2.0,” an upcoming product that is expected to be 10-100 times faster and built with a multi-chain-first approach. It promises to provide personalized experiences and leverage more AI, revolutionizing on-chain analytics further.

In conclusion, Nansen’s journey in the crypto world, as spearheaded by Alex Svanevik, is a testament to the dynamism and potential of blockchain and NFTs. With a commitment to innovation and a focus on providing clarity in a complex landscape, Nansen is poised to play a pivotal role in the future of the crypto space. Despite the challenges, the industry faces regulatory hurdles and user experience issues; the future holds immense promise and exciting developments.