Nike’s NFT Revenue Hits $185 Million

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Nike’s (NYSE:) non-fungible tokens (NFTs) have had primary sales volume of $93.1 million and secondary sales of $92.21 million to date.

Sportswear giant Nike raked in over $185 million in revenue from the sale of its NFTs, far outpacing other fashion brands. The American shoemaker hit the headlines last year with the acquisition of a company that made virtual sneakers.

Nike generates $185 million from NFT sales

According to a Dune Analytics dashboard, which tracks the performance of major brands’ NFT projects, Nike was the top performing company with its NFTs. The American shoemaker has raised more than $185 million from the sale of its NFTs.

The analysis further shows that Nike received over $93 million in royalties, which are payments that compensate original NFT creators for the use of their virtual artwork in secondary markets. The Company’s NFT Collection has achieved $93 million in primary sales volume and $92 million in secondary sales to date.

In comparison, other companies haven’t had much success. For example, the clothing brand Dolce & Gabbana, which is the second largest company in terms of NFT revenue, made around $25 million from the sale of its NFTs. Other top fashion brands like Tiffany, Gucci, and Adidas (OTC:) each made between $11-13 million from their NFT sales.

As noted, Nike acquired RTFKT, a virtual sneaker company that creates NFTs and digital sneakers for the Metaverse, in mid-December last year. Terms of the deal were not disclosed, but RTFKT was last valued at $33.3 million, suggesting Nike could have paid well over $30 million for the deal.

The acquisition of RTFKT came after the footwear giant unveiled Nikeland, a 3D virtual space where fans can “connect, create, share experiences and compete”, in November 2021. In fact, interest in Nike for blockchain dates back to 2019, when the company started exploring blockchain technology to symbolize ownership of exclusive shoes.

Earlier this year, Nike and RTFKT unveiled their first virtual sneaker collection. Called CryptoKicks, it was a collection of 20,000 digital wearables apparently designed for use in metaverse worlds.

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NFT Market Crashes Amid Lingering Crypto Winter

Amid an extended crypto winter, the NFT market is also plunging. NFT sales volumes have fallen to the lowest levels in over a year, and the price floor for blue chip collections has also taken a hit.

According to NFT data aggregator CryptoSlam, the volume of USD NFT sales on the blockchain has fallen to around $10 million in recent days, reaching end-July 2021 levels, and down nearly 98.5% from compared to the all-time high of $628 million recorded. May 1, 2022.

Likewise, the floor price of top-notch NFT collections has been hit hard. For example, the floor price of Bored Ape Yacht Club recently fell to 66.9 ETH, its lowest level in more than six months. The collection’s floor price fell 13% last week and 23% last month.

The continued growth of Nike NFTs, even during the downturn in the NFT market, might suggest that enterprises and large enterprises can also benefit from this technology, especially if these companies integrate use cases into their NFT projects.

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