Sportswear giant Nike has garnered more than $185 million in revenue from the sale of its NFTs, significantly 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 each made between $11 million and $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, Nike’s interest in blockchain dates back to 2019when the company began 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 NFT sales in USD on the Ethereum blockchain has fall to around $10 million in recent days, reaching levels at the end of July 2021, and down almost 98.5% from the all-time high of $628 million recorded on 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 floor price of the collection has fall 13% over the past week and 23% over the past 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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Why do you think Nike’s NFTs have been more successful than its rivals? Let us know in the comments below.
About the Author
Ruholamin Haqshanas is an accomplished crypto and finance journalist with over two years of writing experience in the field. He has a strong understanding of various segments of the FinTech space, including the decentralized iteration of financial systems (DeFi) and the emerging non-fungible token (NFT) market. He is an active user of digital assets for remittances.