$2.7 Billion ETH Spent On NFT Mining – Here Are The Details
Market participants spent 963,227 ETH (approximately $2.7 billion) on NFT development on the Ethereum blockchain during H1 (first half of a calendar year) of 2022.
The volume of ETH raised circulating to other wallets has dropped from a previously reported 52.3% (11 months ago) to a current 45.7%.
Cumulatively, the top five NFT collections that have raised ETH through minting accumulated 81,364 ETH; an estimated 8.4% of the total ETH collected by all projects in the observed period.
A tale of coinage
Nansen published a report on the money raised by minting NFTs from various NFT projects. The report confirms that half of the ETH collected went with the NFT projects (50.7%).
At the same time, the remaining 45.7% of the ETH capture circulated to non-entity wallets. Louisa Choe, Research Analyst at Nansen said:
“Additionally, proof-of-chain NFT collections reinvesting primary sales revenue into NFT shows that builders and creators in this marketplace are looking at the long-term impact of their projects and making decisions that will support that growth.”
In the first half of 2022, over 1.08 million wallets spent 963,227 ETH on NFT mining. After including the free coining activity, the number of participating wallets increases to 1.5 million.
During the period, the highest rise was seen during May when the minting volume exceeded 120 ETH. Afterwards, the general market decline caused the NFT markets to fall in the coming months.
Source: Nansen
A total of 28,986 NFT collections were released on Ethereum in Q1 and Q2 of 2022. More than half of these collections were free coin projects, at 14,961.
Two-thirds of the projects that raised money were able to accumulate less than five ETH. While 140 NFT collections could collect around 1000 ETH. The report reiterates that the amount collected from NFT projects is still large in the market.
Source: Nansen
Nansen’s previous research found that 52.3% of ETH raised from primary sales went to non-business wallets.
Additionally, 3.6% of the ETH collected was deposited into centralized exchanges. Finally, the remaining 17.7% of ETH was distributed back to NFT projects in the market.
However, the latest study confirms the downward trend of money flowing into non-entity wallets from NFT projects.
Around half of the total collected ETH was retained by the projects themselves (50.7%). Only 0.2% of ETH was sent to the exchanges.
Finally, around 3.5% of ETH was sent to “other” wallets, including service providers, angel investors or charities.
Source: Nansen
