Users spent $2.7 billion ETH on NFT minting in H1 2022

    Market participants spent 963,227 ETH, or about 2.7 billion, on NFT minting on the Ethereum blockchain during the first half of 2022. Over 1 million unique wallet addresses were involved in the minting process, signaling that NFT market activity remained strong.

    According to a new report by Nansen, about half (50.7%) of the ETH raised stayed with the NFT projects. Meanwhile, the volume of ETH raised circulating to non-entity wallets has decreased from the previously reported 52.3% last year to the current 45.7%.

    Totally, the top five NFT collections raised ETH through minting accumulated 81,364 ETH – an estimated 8.4% of the cumulative ETH raised by all projects during the period under review. Meanwhile, the remaining 45.7% of the ETH raised circulated to non-entity wallets.

    “Additionally, 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,” research analyst at Nansen Louisa Choe said.

    Over the first half of this year, more than 1.08 million wallets spent 963,227 ETH on NFT minting. With the free minting activity, the number of participating wallets reach 1.5 million.

    (Source: Nansen )

    During the observed period, the highest spike was seen in May when minting volume surpassed 120 ETH. In the following months, the crypto market downturn caused the NFT markets to tumble.

    In H1 this year, 28,986 NFT collections were totally released on Ethereum, with more than half (or 14,961) of these collections being free minted.

    (Source: Nansen )

    Two-thirds of the non-free projects have accumulated less than 5 ETH, while 140 NFT collections were able to raise around 1,000 ETH. The report notes that the amount raised by NFT projects remains wide in the market.

    According to Nansen’s previous research, 52.3% of ETH raised from primary sales went to non-entity wallets. Moreover, 3.6% of the ETH raised was deposited into centralized exchanges. The remaining 17.7% of ETH was deployed back into NFT projects. Although the latest study shows the downward trend of money from NFT projects flowing into non-entity wallets.

    (Source: Nansen )

    About half (50.7%) of the total ETH raised was retained by the projects themselves, while only 0.2% of the ETH was sent to the exchanges. Finally, around 3.5% of ETH was sent to ‘other’ wallets, such as angel investors, service providers, and charities.

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