A method of producing carbon nanotubes, comprising, in a reaction chamber: evaporating at least a partially melted electrode comprising a catalyst by an electrical arc discharge; condensing the evaporated catalyst vapors to form nanoparticles comprising the catalyst; and decomposing gaseous hydrocarbons in the presence of the nanoparticles to form carbon nanotubes on the surface of the nanoparticles. Also a system for producing carbon nanotubes, comprising: a reactor comprising two electrodes, wherein at least one of the electrodes is at least a partially melted electrode comprising a catalyst, the reactor adapted for evaporating the at least partially melted electrode by an electrical arc discharge and for condensing its vapors to form nanoparticles comprising the catalyst, wherein the electrodes are disposed in a reaction chamber for decomposing gaseous hydrocarbons in the presence of the nanoparticles to form carbon nanotubes on the surface of the nanoparticles.