Categories: Crypto NewsNews

R45 billion ETH spent on NFT minting

Published by
Nonhlanhla P Dube

During the first half of 2022, market participants spent 963,227 ETH (about R45 billion) on NFT minting on the Ethereum network.

The volume of ETH raised circulating to non-entity wallets has reduced from 52.3 % (11 months ago) to 45.7 % today.

The top five NFT collections that raised ETH by minting accumulated 81,364 ETH in total, accounting for an estimated 8.4 % of the total ETH raised by all projects during the observed period.

A story about minting
Nansen issued a report on the funds raised by various NFT projects by minting NFTs. According to the report, half of the ETH raised remained with the NFT projects (50.7% ).

Simultaneously, the remaining 45.7 % of the ETH raised was distributed to non-entity wallets. According to Louisa Choe, a research analyst at Nansen,

“In addition, on-chain evidence of NFT collections reinvesting primary sales revenue into NFT demonstrates that builders and creators in this marketplace are considering the long-term impact of their projects and making decisions that will support that growth.”

Over 1.08 million wallets spent 963,227 ETH on NFT minting in the first half of 2022. When the free minting activity is factored in, the number of participating wallets rises to 1.5 million.

The largest rise was noticed during the review period in May, when minting volume topped 120 ETH. Following that, the general market collapse prompted the NFT markets to plummet in the following months.

In the first and second quarters of 2022, Ethereum published a total of 28,986 NFT collections. At 14,961, free mint projects accounted for more than half of these collections.

Two-thirds of the projects that raised money raised less than five ETH. While 140 NFT collections raised approximately 1,000 ETH. According to the research, the amount raised by NFT projects remains significant in the market. According to Nansen’s earlier analysis, 52.3 % of ETH raised through primary sales went to non-entity wallets.

Furthermore, 3.6% of the ETH raised was placed in centralized exchanges. Finally, the remaining 17.7 % of ETH was invested back into market NFT projects.

The most recent report, however, confirms the decreased trend of money going into non-entity wallets from NFT projects.

The projects themselves kept almost half of the total ETH raised (50.7 % ). Only 0.2% of the ETH was transferred to exchanges.

Finally, around 3.5 % of ETH was given to ‘other’ wallets, which included service providers, angel investors, and charities.

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Nonhlanhla P Dube

Nonhlanhla P Dube is a senior news reporter at Rateweb. Nonhlanhla is a student of International Relations at the University of South Africa. She reports primarily on personal finance and economics. You can contact her directly by email at nonhlanhla@rateweb.co.za

Published by
Nonhlanhla P Dube
Tags: Ethereum
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