Battle of the brands in web3 - Purchasing Power Analysis

5 min
Yuxiao Zhang

After crowning our top web3 brand, we expected we would get questions from curious minds to better understand our analysis. So…

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But before we begin, if you love data then don’t let love pass you by. Reach out to claim a priority spot on our product waitlist!

As a quick reminder, we measured the brands based on multiple categories (purchasing power of customers, wealth at different thresholds, persona clustering, impact of fraud, customer engagement levels). Let’s take a look at the first pillar of our analysis, purchasing power. We crowned Tiffany’s the winner of this pillar.

The easiest way to understand purchasing power is simply by looking at which brands’ customers have the most capital to purchase goods with. So we took all ERC20 balances of the participating wallets and summed and averaged them. Here’s how it shook out:

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Now, one might argue that D&G should be the winner here given the total amount of purchasing power their community has, but that’s purely a side effect of having nearly 9x the amount of wallets. What brands should care about is the average because that shows who’s got the most liquid wealth. In this regards, Tiffany’s dominated.

What if Tiffany’s appears to have more wealth because of some outlier billionaire wallet? Well we thought of that too. Here’s a distribution of the percentage of each brand’s wallets at various wealth thresholds. It’s evident that Tiffany’s crushes the competition here.

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All signs point to Tiffany’s at this point, but being the curious minds that we are, we also wanted to run a clustering algorithm on consumers to see if we could isolate high value customer groups and determine what portion of each brands’ users qualify as high value. The results came back more surprising than we expected. D&G and Tiffany’s have similar customer personas, but D&G came out ahead.

Segmenting Users by Key Characteristics:

  • Highly Engaged Whales - large balances, frequent transactions
  • Traders - Highest velocity of transactions
  • Modest bunch - 2nd highest wallet values, moderate levels of transactions

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Tiffany’s has won 2 out of the 3 initial categories so far with D&G claiming one victory. We’ll dive deeper into the other analyses (fraudulent activity) and (engagement) in our following posts this week.