Table of Contents
Ever since the first non-fungible token (NFT) was released, the technology quickly gained ground and developed other similar assets. The technology underlying them makes these assets one-of-a-kind and irreplicable, the feature from which their unbeatable value stems. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible, no NFT has a market equivalent, though nothing can replace your token if you own one. However, this doesn't make them more valuable than cryptocurrency or has us see better price growth performances in them compared to the btc coin price, because the appreciation criteria differ from case to case.
What the technology behind NFTs actually brought to the world is the possibility of big-name brands like Nike, Tiffany, Adidas, Prada, Puma, Louis Vuitton, Gucci, Clinique, and others to leverage it and boost different segments of their sales. Famous names such as Madonna, Justin Bieber, and Snoop Dogg are also reputed for having been involved in the NFT bandwagon.
The battle for the title of the highest-earning brand was won by Nike last year, which, according to the report and analysis provider The Block Research data, has almost $1.4 billion in revenue since 2021 with the Nike-RTFKT NFTs. The company bought it that year, which only in 7 minutes succeeded in selling $3.1 million in NFTs. Furthermore, the company has generated $170 million with over two dozen total collections since that year's finale.
While NFTs have provided unique and unmissable revenue-generating opportunities for large-scale brands, it's normal that some have found users' weak spots and speculated about them. Nike succeeded in establishing itself as the dominator of the top brands that spurred the highest revenue with their NFT collections, and this triumph only pushed it to strike even higher, or at least be rewarded with the same spot again this year. So, what's exactly behind Nike's curtains? And who are the heavyweights threatening its position?
Nike's road to unparalleled success
The initial NFT explosion that spanned 2021 and 2022 opened the door for numerous collections, artists, communities, and developers to position themselves at the front door of the craze that had to follow. Crypto-native organizations generated millions with their NFT creations, offering an example that quick-on-the-uptake businesses follow, with names like Dolce and Gabbana, Tiffany, and Nike topping the list.
Despite the massiveness of the boom, the hype started to dissipate eventually. It can't be denied that NFTs have witnessed brighter days before. By the end of 2022, the trading volume for non-fungible tokens from all the spheres had dropped by around 90%.
Furthermore, the sales have fallen by 29% from January to August of this year. Despite the rapidly rising prices of Bitcoin, Ethereum, and BNB, which are now boosting the ROI for faithful investors who didn't drop them amid last year's instability, the NFT market is not in the same brilliant spot. NFTs will certainly live better days, and until then, companies like the market leader in terms of sales, Nike, revitalize the sector and continue partnering with other famous giants to keep the flame alive.
Nike's second-sale volume exceeded expectations
Nike can derive only 50% of their proceeds from the 2nd sale volume, whereas other collections place all their hope in the previous sale revenue share. This top sports brand has kept its promise to improve the customer and user experience in more fields than just its physical or e-commerce stores. According to Guinness World Records, it is now paving the ground for a new partnership with EA Sports, the gaming giant that holds the title for the best-selling franchise in the sector. The footwear heavyweight has spurred around $20M on the 2nd sale royalties just from a single ERC 1155 collection, with $16M produced in April last year.
The RTFKT collection from the collaboration of Nike and artist FEWOCiOUS has collectibles that now trade for millions of dollars. The primary 6 RTFKT collections that generated the most significant revenue are as follows, each growing more than $1M in royalty fees:
- CloneX
- MNLTH
- Mint Vial
- MNLTH2
- CryptoKick
- Skin Vail.
NFTs trading after October's event climbed by over 600%
An October event this year, where NFT owners could place orders for limited-edition Nike-RTFKT footwear, led trading for the non-fungible tokens to rocket by over 600%. While NFT owners bought some digital collectibles for around $220, these are now priced at a maximum of $1,000 on secondary markets, seeing some owners gain four times as much as they've initially spent. In September only, the NFT trading hit $85,000, followed by the astronomic sale revenue number registered in October, according to one of the largest data aggregators CryptoSlam!. The October increase represented an over 600% month-on-month profit, marking a number that no other brand can boast.
Nike partners with EA Sports for the "virtual creations," keeping its November promise
EA Sports isn't a known name only for games enthusiasts, representing the largest player in the market, but is also becoming a hot topic in financial conversations. Nike, the world's sports video game publisher, has recently announced the launch of a new cooperation that will develop and offer collectors digital assets. The footwear giant's Web3 marketplace platform will bring these to future EA Sports titles.
Regarding their niche productions, no game titles have been announced yet, and there's no piece of info a thrilled reader can munch on. However, what's known is that the creations will have apparel and virtual footwear.
The collaboration seems to deliver on the promises made by the shoe mammoth in November when it first released .Swoosh. The massive brand has indicated that virtual apparel could be included in "immersive experiences" like video games and more.
Obviously, some candidates for the title can be pretty intimidating.
Despite Nike's unparalleled fame in the NFT realm due to the high sales volume, other big names have also stood out in the last period. Dolce and Gabbana took the second spot on the podium regarding the revenue generated, spurring $25.6 million in sales. Tiffany followed with $12.62 million in revenue, while Gucci wasn't left behind and succeeded in grabbing fourth place with $11.56 million.
Adidas, the forever rival of Nike, has also come closer to the latter by securing fifth place in the ranking with $10.94 million in revenue via NFTs.
As you can see, the score isn't that tight. However, it's worth watching the competition to see what else these brands are cooking in the oven and in whose favor the battle unfolds over time!
