How L1 Digital AG Uses On-chain Data to Analyze and Evaluate Potential Investment Opportunities

How L1 Digital AG Uses On-chain Data to Analyze and Evaluate Potential Investment Opportunities

Learn how L1 Digital AG (L1D) uses Nansen Query to conduct research to support investment decisions.

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New protocols are being developed at an exponential rate, each claiming to be superior to its peers. Selecting potential winners has become increasingly daunting as the industry grows and develops. To improve the quality of their research and analysis of potential investments, L1D utilizes blockchain data to sieve through the noise. They require a reliable and high-performance blockchain data provider with accurate data that seamlessly integrates with their existing data pipelines and technology stack.


Data accuracy

While raw blockchain data is easily accessible, parsing the various smart contracts accurately and transforming raw data into contextualized tables requires expertise and curation. As the insights obtained from processed data can inform investment decisions, accuracy, and coverage are extremely important. 

Platform reliability and speed

Slow query processing speed and frequent time-outs were big issues in alternative solutions. Complex queries would take too long to run and in many cases, fail to complete. This would make their research process extremely inefficient and bottleneck their analysis. 

Ease of integration and support

As the firm already had existing data pipelines built on top of Google’s BigQuery, they wanted a provider that had out-of-the-box integrations with their existing stack. The lack of such capability would greatly increase the internal engineering effort required to integrate external data sources into their workflow. L1D also wanted the optionality of being able to partner with and leverage the expertise of blockchain data experts for future research. Such an offering wasn’t readily available among other data providers.

“Data providers that we tested proved too slow and frequently crashed when we attempted to run complex queries necessary for our research. Additionally, integrating their data into our existing pipelines posed a challenge. These issues rendered these providers difficult or even impossible to use in our workflow.” - Alex Miloski, Investment Research, L1D


L1D integrated Nansen Query’s data into their existing data pipelines to create reports and conduct analysis on potential investments. “Nansen was the clear and best choice for our data needs,” said Alex. “Integration was seamless, significantly reducing the internal effort required to get things up and running."


Data-driven investment decisions

The L1D research team is able to run complex queries at a fraction of the time it would take on other platforms without failure. As the team mainly focuses on investing in projects post-launch, the ability to understand what’s really happening on-chain helps their diligence process. Among other things, the team leverages on-chain data to measure user and activity growth as indicators of product market fit. The insights obtained from the data are an important part of their decision-making process. 

We rely on Nansen for most of our on-chain data needs. This has empowered us to make more informed investment decisions. It’s an important part of our research and due diligence process. - Alex Miloski, Investment Research, L1D

Ready to level up your decision-making using blockchain data? Contact us to learn more!

Note: L1D is the investment adviser of a fund that has invested in Nansen.


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