The crypto-ecosystem is growing and is constantly opening up new economic sectors that depend on reliable data. In a recent study, DIA drew attention to data providers, who account for an ever-increasing share of the market.
The crypto-ecosystem is constantly growing and causes an increasing demand for reliable financial market data. In a recent study, Outlier Ventures and DIA provide an overview of providers of financial data on digital securities and compare their different business models.
Crypto-ecosystem a star in the upswing
DIA is an open source platform for financial market data, which collects and evaluates financial data of various assets. Together with Outlier Ventures, they conducted the world's first study of financial data providers of digital assets and their business models. In the study, the data volume, data depth and prices of a total of 42 financial data providers from 17 countries were analyzed and compared.
With the emergence and spread of block chain technology and the resulting growth of the digital asset market, a completely new ecosystem has emerged. Most crypto service providers depend on reliable collection, processing and provision of market data. A large number of different companies are now filling this new industry. The distribution of market shares between established financial players, who use existing infrastructures, and start-ups, who enter the market with innovative approaches, is an exciting development that must be pursued in the future.
According to DIA, the market has already generated a total of approximately 100 million euros in capital. For 2019 alone, a turnover of around 13.5 million euros is expected. With a share of 86 percent, US and European companies dominate the market, with Europe being able to position itself ahead of the USA with a greater number of companies.
Providers supply the market with data
In particular, the increasing demand for DeFi services is accompanied by a growing need for reliable data sources. According to Philipp Sandner, head of the Frankfurt School Blockchain Center, "accurate and reliable access to the market for financial data is a central component of a DeFi economy.
And Jamie Burke, CEO of Outlier Ventures, also sees a great need for secure data access:
Sufficient transparency is extremely rare, especially in emerging industries. [...] Financial data, whether from digital or traditional assets, should be freely available to anyone who wants to work in this market.
The study is therefore intended to provide an up-to-date overview of financial data providers in the crypto-economy and serve as a guide for companies, as DIA Managing Director Michael Weber adds:
Institutional financial data providers that try their hand at the crypto-market will encounter a new generation of decentralized competitors. Their long-term proven, but also very costly resale of financial data is now being set against more cost-efficient solutions from new companies. Competition is fierce and the market is developing extremely fast. And it is precisely these conditions that can lead to the flourishing of industry-changing companies and concepts. To capture the current state of affairs, we have created an overview of the market.
