Decoding blockchain data for research in marketing: New insights through an analysis of share of wallet

Blockchains are often associated with anonymity and illicit activities. However, public blockchains offer an unparalleled level of transparency because they record all transactions openly. This transparency allows firms to observe in real-time and at a low cost the transactions of both their customers and competitors. This article outlines how to use the transparency of blockchain data to gain valuable insights into real-world behaviors, such as customers’ share of wallet. The empirical study uses blockchain data from the entire NFT trading market, which covers 22.7 million sales transactions from 1.3 million customers across eight competing firms, and totals to over US$500 million in fees. The study reveals that a customer’s current spending (size of wallet) is not a valid indicator of future growth potential because it has little correlation with the share of wallet or potential wallet size.