Two crypto data providers have joined forces in an effort to help companies navigate what they call the “fragmented” nature of transactions across crypto platforms.
Nansen and Kaiko, which revealed the partnership Thursday, seek to offer institutions a more “holistic view” into insights across both centralized and decentralized exchanges.
The vast majority of market activity still happens on centralized exchanges, which are the primary venue for price discovery, according to Clara Medalie, Kaiko’s director of research.
Ethereum-based decentralized exchanges account for roughly 5% of volume relative to centralized counterparts, she added.
“This is why it is important to have access to both centralized and decentralized data,” Medalie told Blockworks. “If just relying on decentralized data, you miss a lot of market information that impacts prices.”
Data from Nansen can help identify token concentration or suspicious activity, the company said, while Kaiko breaks down price volatility, liquidity risks and market movements.
Nansen bought DeFi portfolio tracker Ape Board last May to boost its Web3 data capabilities.
The company launched Nansen Query in March — an offering designed to allow crypto teams to write queries and extract insights from the company’s datasets. The platform supported 17 blockchains at the time.
Founded in 2014, Kaiko raised $53 million as part of a Series B round in June 2022.
The firm debuted data related to lending and borrowing rates last month. It added its Outlier Resistant Pricing Tool last week which aggregates an asset’s price across major exchanges to determine a “fair price” for that asset.
The partnership with Kaiko now gives Nansen Query users “programmatic access” to both on-chain and market data rather than building multiple integrations, according to Nansen CEO Alex Svanevik.
“Nansen’s clients now have access to high-quality centralized exchanges’ data (CEXs) for their back-testing strategy, business intelligence use cases and regulatory compliant benchmark rates to best value their portfolios,” Kaiko Chief Operating Officer Elodie de Marchi said in a statement. “This empowers them by having a comprehensive view of the blockchain ecosystems and market dynamics.”
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Source: https://blockworks.co/news/nansen-kaiko-better-dex-cex-coverage