Digital Assets: Industry Funding for Digital Asset Data Providers Surpasses $110 Million
USA and Europe leads in the newly emerging market of digital asset data providers, says a report.
Outlier Ventures and DIA conducted a global study of 42 digital asset market data vendors globally. These vendors handle data for daily trading volumes exceeding US$100 billion. This newly emerging market of digital asset data providers is growing fast, the study found. (CROWDFUND INSIDER)
According to the report, the market for digital asset data has been spurred by the relentless advance in blockchain technology, and the growth in digital assets such as cryptocurrencies and security tokens. Furthermore, volumes of such products on digital asset exchanges are now well above US$ 100 billion.
The report found that the USA and Europe accounted for the bulk of the nascent market of digital data. Out of the 42 data vendors included in the study, 17 were based out of the USA while 19 companies operated in Europe. The population of 42 vendors included both start-ups and institutional companies. It was drawn from 17 countries.
The study says participants in this new market had raised funding of over $110 million globally. Moreover, the entities covered by the report generated revenues estimated at $15 million.
“The market is growing fast and incumbent corporate players with proven infrastructure compete with startups that adopt more innovative approaches,” Outlier Ventures and DIA said in their statement.
However, prices of digital asset market data stretched across a very wide spectrum. New entrants to the market offered inexpensive yet varied datasets from as low as $10 for a single user per month. On the other hand, pricing by institutional companies was rather high (and untransparent) at $2250 per user.
Data content trends
Data content provided by the vendors also varied substantially:
- Free of charge datasets offered data from more exchange sources rather than paid services. 83% of free datasets originated from 100 to 400 exchanges.
- Partly free, partly fee-based services were mixed – 3 companies offered less than 25 exchanges, 6 offered 26 to 100 exchanges and 4 companies utilized more than 100 exchanges.
- Fully paid market data vendors stuck to data from just 8 to 25 different exchanges.
“Institutional market data vendors venturing into the digital asset world face a new generation of decentrally structured competition. Their long-time proven, yet expensive upselling of publicly available data is now met with cost-efficient offers from new companies.”, said Michael Weber, DIAs founder and CEO. ”Competition is stiff and the market is developing rapidly. This is exactly the kind of environment that can nurture the emergence of industry-changing companies and concepts.”
Outlier Ventures is a venture platform supporting the development of emerging technology.
DIA describes itself as the Wikipedia for open financial data – in a financially smart contract ecosystem.
Related Story: Digital Assets: BitGo Flags Off Crypto Lending to Institutions
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