Over $1 Billion Reinvested Into NFT Ecosystem in 2022, Nansen Reports
According to a report by Nansen on Tuesday, NFT creators are retaining funds and reinvesting them into the ecosystem. Nansen pointed to a mature NFT market by investigating collections with sales volumes above 20 ETH in the first half of 2022. Market participants spent ETH 963,227, worth about USD 2.7bn, on non-fungible token (NFT) minting on the Ethereum blockchain, with 50.7% of the raised crypto staying with NFT projects, according to the report.
Louisa Choe, an analyst at Nansen, believes that the minting sector of the NFT market is still doing well with an increase in average mints per unique wallet address. Choe added that on-chain evidence of NFT collections reinvesting primary sales revenue into NFT demonstrates that creators in this market consider the long-term impact of their projects and make decisions that will support that growth.
Out of all the funds raised through projects covered in the report, only 0.3% of funds were sent to exchanges. However, one limitation was identified in the report, as the study did not address onward transactions from receiving wallets.