Arthur Hayes, co-founder and former CEO of the cryptocurrency exchange BitMEX, has taken on a new role as an advisor at Covalent, a startup specializing in data infrastructure. With a solid background in the crypto world, Hayes is set to help Covalent lead the charge in the Ethereum ecosystem and also make inroads into the AI sector.

Hayes believes Covalent’s CQT token hasn’t quite gotten the attention it deserves, especially compared to its competitors like The Graph. He is aiming to boost Covalent’s profile and market value. Even with Hayes coming on board, the market response has been muted so far, with Covalent’s market cap lingering around $145 million.

Covalent offers a streamlined solution to access historical blockchain data through a unified API, tackling the challenge developers face when dealing with costly and limiting public blockchain nodes. By streamlining access to over 200 supported blockchain networks, Covalent removes significant barriers to development and adoption within the Web3 space.

The platform is a boon for those developers building decentralized applications who need quick access to various data points like address activities, historical transactions, and wallet balances—all without the hassle of managing their own blockchain nodes. Its client base includes notable organizations such as ConsenSys, CoinGecko, Rotki, NFTX, and Rainbow, spanning various applications from dashboards to tax tools and NFT curation.

One of Covalent’s standout initiatives is the Ethereum Wayback Machine (EWM). This project is timely, as Ethereum is undergoing significant changes, notably entering the “Rollup Era” which significantly changes how data is managed. Instead of storing archival data within clients, the new approach involves deleting data after it is no longer needed for validation, typically within one to three months.

This poses a potential risk of data loss unless steps are taken to preserve it. This is where the Ethereum Wayback Machine steps in. Powered by the Covalent Network, it ensures that historical blockchain data remains accessible. This development is crucial not only for transparency but also for encouraging developers to continue building on the Ethereum network without worrying about data accessibility.

Overall, Covalent has been quite successful in attracting users. Recently, the company announced it had achieved a significant milestone by reaching 300 million active wallets utilizing its data services. This marks a notable increase from the 280 million wallets reported at the end of March 2024. 

With the growth of the crypto ecosystem, blockchain data is set to become the new oil, and Covalent is well-positioned to capitalize on this trend.

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