Relationship between Size of Wallet, Share of Wallet and Total Wallet: New Insights from the Blockchain
(A2024-119792)

AUTHORS

Björn Hanneke, Goethe University Frankfurt; Bernd Skiera, Goethe-University Frankfurt, Germany; Thilo Kraft, Goethe University Frankfurt; Oliver Hinz, Goethe University Frankfurt

ABSTRACT

Share of wallet is the share of total spending that goes to a particular firm within a specific market. It is a valuable metric because it identifies how much additional spending a firm could capture from each customer. Yet, this information is hard to derive in conventional settings. So, little is known about how the share of wallet relates to other metrics, such as the size or total wallet. Decoding blockchain data enables observing all customer transactions on the Ethereum NFT market; 22.7 million transactions of over 1.3 million customers with more than US$ 1 billion in fees across eight competing firms. Their analysis reveals hardly any correlations between the size of wallet, total wallet, and share of wallet in each of these eight firms. The distributions of the share of wallet differ across firms, reflecting the firms' competitive positions as market leaders, followers, or niche players.