Majority of NFT Collections Reinvest Ethereum Back Into System
In the first half of 2022, market participants spent ETH 963,227, worth about USD 2.7bn, on non-fungible token (NFT) minting on the Ethereum blockchain, with 50.7% of the raised crypto staying with NFT projects, and the remainder circulated to non-entity wallets, according to a report by blockchain data and analytics platform Nansen.
At the same time, the volume of the raised ETH circulating to non-entity wallets decreased from the 52.3% reported 11 months ago to 45.7%.
Cumulatively, Nansen said, the top five NFT collections that raised ETH through minting accumulated some ETH 81,364. This was an estimated 10.3% of the total ETH raised by all projects in the analyzed period.
Along with the growth in the number of unique wallets which took part in the minting activity, Nansen says it has also witnessed a slight expansion in average mints per wallet during this period, at 3.65 mints per wallet. This is up from the previously reported average of 3.16 mints.
“In the studied period, a total of 28,986 NFT collections were deployed. In total, these projects collectively raised 833,641 ETH. Interestingly, slightly more than half of these collections were free mint projects” at 51.6%, the firm said.
The median amount raised by projects was ETH 1.43, and the average was ETH 59.4, according to Nansen.
We “maintain our conclusion that the minting sector of the NFT market remains healthy with the rise in average mints per unique wallet address,” said Louisa Choe, Research Analyst at Nansen, as quoted in a statement.
Choe added that “on-chain evidence of NFT collections reinvesting primary sales revenue into NFT demonstrates that builders and creators within this marketplace are looking at the long term impact of their projects and making decisions that will support that growth.