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On-chain data points to an influx in conscientious builders and creators
AUGUST 2 – Singapore – Nansen (https://www.nansen.ai/), the industry-leading blockchain data and analytics platform has released today a research report which tracks the flow of Ether (ETH) raised through NFT collections’ primary sales and how those funds were used.
Replicating its study from 2021, which discovered that most of the funds raised by NFT collections were moved into non-entity wallets, this most recent report highlights the tremendous shift in priority year over year. NFT creators are now retaining funds and reinvesting them back into the ecosystem, pointing to a shift towards becoming more mature and conscientious builders.
Nansen originally revisited the conducted study to distinguish if the previously discovered trends were still applicable, specifically in regards to what NFT collections were doing with the ETH they raised. Following the research parameters set out by the original study, analyzing projects with primary sales revenue of more than 20 ETH between 01 Jan to 30 June 2022, Nansen leveraged its own database of wallet address labels to analyze where the ETH outflow went.
Data to support a maturing NFT market includes the following:
- Market participants spent 963,227 ETH (approximately $2.7b) on NFT minting on the Ethereum blockchain between 01 January to 30 June 2022.
- Half of the ETH raised stayed with the NFT projects (50.7%), while 45.7% of the ETH raised circulated to non-entity wallets.
- The volume of ETH raised circulating to non-entity wallets has decreased from the previously reported 52.3% (11 months ago) to the current 45.7%. Top non-entity wallets included ETH millionaires, wallets that have used EIP 1559, NFT collectors, Heavy DEX Trader and a few private wallets.
- Cumulatively, the top five NFT collections that have raised ETH through minting accumulated 81,364 ETH; an estimated 10.3% of the total ETH raised by all projects in the observed period.
“Reflecting on the on-chain results of this study, 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. “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.
About Nansen
Nansen is a blockchain analytics platform that enriches on-chain data with millions of wallet labels. Crypto investors use Nansen to discover opportunities, perform due diligence and defend their portfolios with our real-time dashboards and alerts.
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