February 25, 2024

Market participants spent 963,227 ETH (about $2.7 billion) to mint NFTs on the Ethereum blockchain in the first half (first half of the calendar year) of 2022.

The volume of ETH pooled circulating in non-entity wallets has dropped from the previously reported 52.3% (11 months ago) to the current 45.7%.

Cumulatively, the top five NFT pools that raised ETH through the slicing raised 81,364 ETH. an estimated 8.4% of the total ETH raised by all projects during the observed period.

A cutting story

Nansen published a report for the money collected from NFT minting from different NFT projects. The report confirms that half of the ETH raised remained in NFT projects (50.7%).

At the same time, the remaining 45.7% of ETH collected was released to non-entity wallets. Louisa Choe, researcher at Nansen said,

“Additionally, evidence in the chain of NFT collections reinvesting primary sales revenue into NFTs shows that makers and creators in this market are considering 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 free slicing activity is included, the number of participating wallets increases to 1.5 million.

During the period under review, the highest rise occurred in May, when the cut volume exceeded 120 ETH. Then, the general market downturn caused NFT markets to fall in the following months.

Source: Nansen

A total of 28,986 NFT collections were launched on Ethereum in Q1 and Q2 2022. More than half of these collections were free mint projects, with 14,961.

Two-thirds of the projects that raised money were able to raise less than five ETH. While 140 NFT collections were able to raise around 1,000 ETH. The report reiterates that the amount raised by NFT projects remains large in the market.

Source: Nansen

Nansen’s precedent research found that 52.3% of ETH raised from primary sales went to non-entity wallets.

Additionally, 3.6% of the ETH collected was deposited into centralized exchanges. Finally, the remaining 17.7% of ETH was redeployed to NFT projects in the market.

However, the latest study confirms the downward trend of money flow to non-entity wallets from NFT projects.

About half of the total ETH raised was held by the projects themselves (50.7%). Only 0.2% of ETH was sent to exchanges.

Finally, about 3.5% of ETH was sent to “other” wallets, including service providers, angel investors or charities.

Source: Nansen

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