The first half of 2022 saw an estimated $2.7 billion spent by market participants on NFT minting activities. With such substantial capital flowing into the ecosystem, a natural question arises: What do NFT projects actually do with the ETH they raise from primary sales?
A research study by Nansen tracked the flow of ETH collected by NFT collections during primary mints on Ethereum. Nearly a year later, this analysis has been revisited to assess whether earlier trends still hold true—especially in how NFT teams manage their treasury funds post-launch.
This article explores the financial behaviors of NFT projects, focusing on fund allocation, treasury retention, and downstream transactions—offering valuable insights for investors, collectors, and creators navigating the digital collectibles space.
NFT Minting Activity on Ethereum (Jan–Jun 2022)
Between January 1 and June 30, 2022, users spent approximately 963,227 ETH (around $2.7 billion at the time) minting NFTs on Ethereum. A total of 1,088,888 unique wallets participated in paid mints. When including free mints, that number exceeds 1.5 million unique addresses, reflecting broad community engagement.
Weekly NFT minting volume during this period accounted for about 13.7% of total NFT activity tracked by Nansen across multiple blockchains. While Ethereum remains a dominant platform for high-value collections, other chains like Binance Smart Chain (BSC) reported significantly higher proportions of weekly minting volume—averaging 80.2% over the same timeframe, with roughly $107 million in total NFT minting volume.
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Distribution of Funds Across NFT Projects
During the study period, 28,986 NFT collections were deployed on Ethereum, collectively raising 963,227 ETH. Notably, 51.6% of these were free mints (n = 14,961), meaning they did not generate direct revenue. Among paid mints:
- 65.8% raised less than 5 ETH (n = 9,229)
- The median amount raised was just 1.43 ETH
- The average was higher at 59.4 ETH, skewed by a few high-performing projects
- Only 140 projects raised over 1,000 ETH
This highlights a highly polarized funding landscape—while most projects struggle to raise significant capital, a small fraction captures a disproportionate share of total funds.
Additionally, the average number of NFTs minted per wallet increased slightly to 3.65, up from 3.16 in prior reports, indicating growing user participation and experimentation within the ecosystem.
Where Does the ETH Go After Minting?
To understand fund flows, Nansen analyzed projects that raised over 20 ETH in primary sales during the period. Using wallet labeling technology, researchers traced where funds were transferred from project treasuries—typically recorded as internal transactions on Etherscan.
Key Findings: ETH Flow Distribution
- 50.7% of raised ETH remained within project-controlled wallets
- 45.7% was sent to non-entity wallets (private or unlabeled addresses)
- 3.5% went to "other" categories such as service providers, angel investors, or charitable causes
- Only 0.2% was transferred to centralized exchanges (CEXs)
This marks a significant shift from earlier findings, where over half of raised funds flowed into private wallets. Now, half of all funds are being retained, suggesting more responsible financial stewardship and longer-term planning among project teams.
Non-entity wallets receiving large inflows included addresses associated with:
- High-net-worth individuals ("ETH millionaires")
- Active DeFi traders
- Early adopters of EIP-1559
- Prominent NFT collectors
For example, VeeFriends Series 2 accounted for five entries in the top 20 recipient non-entity wallets—mostly sending funds to highly active user addresses.
Deep Dive: Top 5 ETH-Raising NFT Projects
The top five NFT collections raised 81,364 ETH, representing 8.4% of all ETH collected during the period. Let’s examine how each managed its treasury:
1. Pixelmon - Generation 1
Raised the most ETH through primary sale. Funds were transferred to a Gnosis Safe Proxy wallet (0xf6bd...c6971), likely a multi-signature treasury wallet used for secure fund management.
From there:
- 57% converted to USDC
- 43% wrapped into WETH
This suggests a strategy focused on liquidity preservation and risk mitigation through stablecoins and interoperable assets.
2. Moonbirds
Proceeds sent to the official beneficiary address (0x000d...a1668). Subsequently:
- 19.7k ETH moved to wallets linked with Gemini Exchange
This indicates either strategic partnerships, custodial storage, or potential team compensation via regulated platforms.
3. VeeFriends Series 2
Post-mint activity declined. Raised funds primarily distributed across 30 wallets tied to:
- EIP-1559 users
- High-activity traders
Suggests targeted community rewards or internal distribution rather than immediate liquidity dumping.
4. World of Women Galaxy (WoWG)
Majority of ETH sent to an address labeled "OpenSea Royalty Receiver" (0x646b...be09), possibly controlled by the team. From there:
- Funds flowed into wallets linked to EIP-1559 activity
Indicates reinvestment or redistribution within developer and creator circles.
5. Genesis Box
Raised funds deposited into a Gnosis Safe Proxy wallet (0xd1f1...64380), then partially transferred to:
- A private wallet (0xbe56...32a9)
- Eventually moved to a wallet historically linked to Blockfolio (now part of FTX)
While FTX’s collapse adds complexity, this may reflect early-stage investments or team affiliations.
Core Keywords & SEO Optimization
This analysis integrates the following core keywords naturally throughout:
- NFT project treasury
- ETH flow analysis
- primary NFT sales
- NFT minting data
- blockchain fund tracking
- NFT financial transparency
- crypto fundraising trends
- on-chain analytics
These terms align with search intent around NFT finance, transparency, and investor due diligence—key concerns for both new entrants and seasoned participants in Web3.
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Frequently Asked Questions (FAQ)
Q: What percentage of NFT projects make money from mints?
A: Only about 48% charge a mint fee. Of those, the vast majority raise under 5 ETH. Truly profitable projects are rare—less than 0.5% raise over 1,000 ETH.
Q: Why do some projects send funds to non-entity wallets?
A: These transfers may represent team payouts, private allocations, or strategic partnerships. However, lack of transparency can raise red flags for investors unless properly disclosed.
Q: Is it good when an NFT project keeps most of its raised ETH?
A: Yes—retaining funds signals long-term commitment. It allows teams to fund development, marketing, and ecosystem growth instead of cashing out immediately.
Q: How can I track where an NFT project’s funds go?
A: Use on-chain analytics platforms like Nansen or Etherscan to monitor treasury wallet activity. Look for movements to CEXs (red flag) or DeFi protocols (potential staking/investment).
Q: What’s the significance of Gnosis Safe wallets in NFT treasuries?
A: Gnosis Safe enables multi-signature control, enhancing security and decentralization. Its use signals professional treasury management and reduced single-point-of-failure risk.
Q: Did many projects dump their ETH after minting?
A: No. Only 0.2% went to centralized exchanges—far lower than early assumptions. Most funds stayed in project wallets or moved to private accounts without immediate selling pressure.
Conclusion: Responsible Builders in the NFT Space
Contrary to early skepticism about “cash-and-run” NFT projects, this updated analysis reveals a more nuanced reality. Over half of raised ETH is now retained by projects, demonstrating stronger financial discipline and long-term vision.
While a significant portion still flows into unlabeled wallets, improved on-chain labeling tools like those from Nansen enhance transparency and accountability. The use of secure infrastructure like Gnosis Safe and movement into stablecoins or DeFi also reflects maturing financial practices.
Ultimately, the data supports the presence of ethical builders reinvesting in their ecosystems—a positive signal for the future sustainability of the NFT market.
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