In the first half of 2022, market participants spent approximately $2.7 billion on NFT minting. But what do NFT projects actually do with the funds they raise?
Nansen previously published a research article tracking the flow of Ethereum (ETH) raised by NFT collections through primary sales (i.e., NFT minting). Nearly a year later, we revisited this topic to see if earlier trends still hold. Specifically, how do NFT collections manage the ETH they raise?
Key Findings on NFT Minting Activity
Ethereum NFT Minting Volume (Jan 1 – June 30, 2022)
- Total ETH Raised: 963,227 ETH (~$2.7 billion).
- Unique Wallets Participating: 1,088,888 (excluding free mints).
- Weekly Minting Share: 13.7% of total NFT activity on Ethereum.
Cross-Chain Comparisons
- Binance Smart Chain (BSC): Highest minting share (80.2% weekly), totaling ~$107M.
- Other Chains: Arbitrum, Avalanche, and Polygon showed lower minting dominance.
Where Does the ETH Go?
ETH Allocation Trends
- Retained by Projects: 50.7% of raised ETH remains in project treasuries.
- Non-Entity Wallets: 45.7% transferred to private/unlabeled wallets.
- Exchanges: Only 0.2% sent to CEXs/DEXs.
Top 5 ETH-Raising NFT Projects
| Project | ETH Raised | Key Allocation Insights |
|------------------------|------------|---------------------------------------|
| Pixelmon - Generation 1 | 81,364 ETH | Funds moved to a Gnosis Safe proxy. |
| Moonbirds | 19,700 ETH | Transferred to Gemini-linked wallets. |
| VeeFriends Series 2 | 8,200 ETH | Sent to high-activity EIP-1559 wallets.|
FAQ
Q: Why do NFT projects retain ETH instead of spending it?
A: Projects often hold ETH for long-term development, community incentives, or to weather market volatility.
Q: What risks exist with funds sent to non-entity wallets?
A: Lack of transparency—these wallets could belong to team members, investors, or undisclosed parties.
Q: How can investors verify fund usage?
A: Tools like Nansen’s wallet tracker and blockchain explorers enable due diligence on ETH flows.
Conclusion
NFT projects now retain a significant portion of raised ETH (50.7%), contrasting earlier trends where funds flowed mostly to private wallets. This shift suggests maturing treasury management practices. However, 45.7% still reaches non-entity addresses, underscoring the need for transparency.
👉 Learn about NFT project sustainability
Data sourced from Nansen, with methodologies refined to improve wallet labeling accuracy.