Many top brands seem to be raking in decent profits as they diversify their portfolio into digital collectibles
Non-fungible tokens have become a promising new stream of income for consumer organizations. Last year, the American multinational corporation (MNC) was all over the media for obtaining a company responsible for making NFTs and sneakers for the metaverse. Later, In April this year, Nike released its first collection of virtual sneakers, Cryptokicks. The so-called Cryptokicks compromised 20,000 NFTs, including one that was designed by Takashi Murakami (a re-known artwork designer) purchased for a total of $134,000.
Nike is a newcomer to the crypto sector. However, it also demonstrates strength in a difficult area to obtain the ideal scenario. In particular, Nike’ all NFTs connected actions helped the company to create more than $185 million. It has been able to do so by fostering a total of 67.2k transactions.
Nike’s NFT-related projects have made over $185M in revenue, positioning it as the biggest earning brand according to DuneAnalytics
With NFTs, Nike is also taking some other noteworthy actions. The company is fusing virtual experiences with its renowned trademark rights to increase sales of its NFTs. It has also accelerated its Web3 ambition with the December 2021 acquisition of NFT business RFTKT.
The NFT Market Nosedive
It is crucial to remember that from December 2021 until the present, several causes contributed to a significant decline in the value of cryptocurrencies. More importantly, the Collapse of the Terra ecosystem had a detrimental effect on other crypto projects, making May 2022 an extremely difficult time for the cryptocurrency industry.
The Crypto NFTs sector suffered during this slump in the cryptocurrency market in the second quarter of 2022, as trade volume fell by 40%. Nevertheless, Nike NFTs made a sizable profit throughout this recessionary period. Information reveals that NFT floor prices had fallen significantly in the last months, with many of the most well-known NFTs selling at lower prices.
The Corporate-NFT Takeover
Dolce & Gabbana is also placed second on the NFT revenue ranking. But compared to Nike NFTs, Dolce & Gabbana can only wipe away their tears because the fashion powerhouse D&G only made $25 million in profit, more than seven times less than Nike. Additionally, D&G generated revenues from fewer than 10,000 transactions, but Nike can take pride in more than 67,000 NFT-related transactions.
Conversely, with $12 million, $11 million, and $10 million, respectively, Tiffany, Gucci, and Adidas all had double-digit sales. Only one-third of the revenue made by Nike NFTs comes from the top five brands, with Web3 entrances taken collectively. It is with no question evident that corporates are overtaking NFTs given the nosediving prices that are evident in the NFT market and the pressure noticed from consumer-focused firms and organizations.
Source: The Block
The Block provided a dataset about traded value. Here’s how the publication tracks the trade volume of NFTs or the dollar value of NFT trades during the months Nike took over.
Do you think the NFT hype among some of the most sought-after fashion brands may not fade soon? Let us know in the comments section.
