Nike Overtakes the Big Brand NFT Market With Over $185 Million USD From NFT Sales & Royalties
- The Breakdown of the Analysis
- Nike’s Metaverse Journey
- Conclusion
Non-fungible tokens (NFTs) are taking over the business landscape faster than ever before with more brands and individuals hopping on board the Web3 wagon, looking for ways to improve customer interaction. Many large global brands such as Nike, Coca-Cola, and Gucci started dipping their toes into crypto and NFTs in 2021. Several of them jumped in fully in 2022, and some saw remarkable success.
Nike has made over $185 million from NFT sales & royalties, according to a brand case study that was published by the analyst Noah Levine on Dune Analytics.
Other 8-figure success stories include Dolce & Gabbana, Tiffany & Co., Gucci, Adidas, & Time Magazine.
The data reveals the top 13 best-performing brands in the NFT space, based on their primary sales revenues, secondary transactions, and royalties affiliated with their brands.
The Breakdown of the Analysis
The data indicates that Nike invested heavily in NFTs in particular, launching over a dozen different collections that collectively brought in $1.3 billion USD in volume:
In addition, the analysis provides evidence that Nike has received over $92 million USD in royalties, which are payments made to original NFT creators for the use of their virtual artwork in secondary markets.
As of today, the NFT collection of the company has made $93 million USD in primary sales and $92 million USD in secondary sales.
The list also includes Dolce & Gabbana, Gucci, Tiffany & Co., and Adidas, which have been recognized as the top-five fashion brands to have experienced the greatest growth in their NFT portfolios.
The next brand on the list is Dolce & Gabbana. The release of D&G's Collezione Genesi, which features nine fashion NFTs and physical garments, created headlines and set records in October 2021. As a result of the brand's expansion of its NFT offerings, it has generated a total revenue of $23.69 million USD from NFTs.
With $12.62 million USD in revenue that comes from primary sales, Tiffany & Co. is ranked third. This revenue was generated by the brand's NFTiff collection of 250 NFTs, which were offered and sold out to CryptoPunks NFT holders.
According to Dune data, Tiffany & Co. does not generate much from the royalties for secondary sales, but the secondary volume for the brand’s NFTs is worth $3.4 million USD based on only 76 secondary transactions.
The majority of Nike's success occurred in the first half of the year, when the NFT market was still roaring and the hype had not yet waned.
CloneX became Nike's most successful collection, generating over $40 million USD in royalty fees. Following this is the Nike Sneakers-themed NFT collection MNLTH, which received $24.4 million USD in royalties.
Royalties from other collections, such as Mint Vial, MNLTH2, CryptoKick, and RTFKT Bonus Items, have reached at least $1 million USD each.
During Q3 and Q4, royalties dropped to a relative nip (although they were still in the hundreds of thousands per month):
Nike’s Metaverse Journey
Nike's first foray into the metaverse was in November 2021 with the launch of "Nikeland," which was created in partnership with global gaming platform, Roblox. Nikeland is a virtual world where fans can “connect, create, share experiences, and compete.” Nikeland has proven how Metaverse and online spaces can impact brands by attracting 7 million visitors in its first two months.
In mid-December 2021, Nike invested in its own NFT startup called RTFKT as part of its Web 3.0 strategy.
Benoit Pagotto, Chris Le, and Steven Vasilev founded RTFKT in 2020 to redefine the boundaries of physical and digital value for its community of creators. To create unique virtual products and experiences, this team leverages the latest in game engines, NFTs, blockchain authentication, and augmented reality.
In fact, Nike's interest in blockchain technology dates back to 2019, when the company began exploring it as a means of tokenizing exclusive shoe ownership.
Conclusion
The success of NFTs in early 2022 provided a great proof of concept, and brands are likely to take the NFTs even more seriously in 2023. Considering that last year was the first time most of these brands delved into the metaverse, the revenue made from NFTs looks encouraging. The total revenue of labels will undoubtedly increase as they continue to engage with NFTs and create communities within their respective fields. Digital projects do not require the same production capacity or distribution requirements as real-life products, so they may prove more lucrative in the long run.
Sources: about.nike.com, dune.com, dappradar.com, www.analyticsinsight.net, cryptopotato.com, www.inverse.com
analyst opinion
Kuba Lohnický
Non-fungible tokens (NFTs) are taking over the business landscape faster than ever before with more brands and individuals hopping on board the Web3 wagon, looking for ways to improve customer interaction. Many large global brands such as Nike, Coca-Cola, and Gucci started dipping their toes into crypto and NFTs in 2021. Several of them jumped in fully in 2022, and some saw remarkable success.
Nike has made over $185 million from NFT sales & royalties, according to a brand case study that was published by the analyst Noah Levine on Dune Analytics.
Other 8-figure success stories include Dolce & Gabbana, Tiffany & Co., Gucci, Adidas, & Time Magazine.
The data reveals the top 13 best-performing brands in the NFT space, based on their primary sales revenues, secondary transactions, and royalties affiliated with their brands.
The Breakdown of the Analysis
The data indicates that Nike invested heavily in NFTs in particular, launching over a dozen different collections that collectively brought in $1.3 billion USD in volume:
In addition, the analysis provides evidence that Nike has received over $92 million USD in royalties, which are payments made to original NFT creators for the use of their virtual artwork in secondary markets.
As of today, the NFT collection of the company has made $93 million USD in primary sales and $92 million USD in secondary sales.
The list also includes Dolce & Gabbana, Gucci, Tiffany & Co., and Adidas, which have been recognized as the top-five fashion brands to have experienced the greatest growth in their NFT portfolios.
The next brand on the list is Dolce & Gabbana. The release of D&G's Collezione Genesi, which features nine fashion NFTs and physical garments, created headlines and set records in October 2021. As a result of the brand's expansion of its NFT offerings, it has generated a total revenue of $23.69 million USD from NFTs.
With $12.62 million USD in revenue that comes from primary sales, Tiffany & Co. is ranked third. This revenue was generated by the brand's NFTiff collection of 250 NFTs, which were offered and sold out to CryptoPunks NFT holders.
According to Dune data, Tiffany & Co. does not generate much from the royalties for secondary sales, but the secondary volume for the brand’s NFTs is worth $3.4 million USD based on only 76 secondary transactions.
The majority of Nike's success occurred in the first half of the year, when the NFT market was still roaring and the hype had not yet waned.
CloneX became Nike's most successful collection, generating over $40 million USD in royalty fees. Following this is the Nike Sneakers-themed NFT collection MNLTH, which received $24.4 million USD in royalties.
Royalties from other collections, such as Mint Vial, MNLTH2, CryptoKick, and RTFKT Bonus Items, have reached at least $1 million USD each.
During Q3 and Q4, royalties dropped to a relative nip (although they were still in the hundreds of thousands per month):
Nike’s Metaverse Journey
Nike's first foray into the metaverse was in November 2021 with the launch of "Nikeland," which was created in partnership with global gaming platform, Roblox. Nikeland is a virtual world where fans can “connect, create, share experiences, and compete.” Nikeland has proven how Metaverse and online spaces can impact brands by attracting 7 million visitors in its first two months.
In mid-December 2021, Nike invested in its own NFT startup called RTFKT as part of its Web 3.0 strategy.
Benoit Pagotto, Chris Le, and Steven Vasilev founded RTFKT in 2020 to redefine the boundaries of physical and digital value for its community of creators. To create unique virtual products and experiences, this team leverages the latest in game engines, NFTs, blockchain authentication, and augmented reality.
In fact, Nike's interest in blockchain technology dates back to 2019, when the company began exploring it as a means of tokenizing exclusive shoe ownership.
Conclusion
The success of NFTs in early 2022 provided a great proof of concept, and brands are likely to take the NFTs even more seriously in 2023. Considering that last year was the first time most of these brands delved into the metaverse, the revenue made from NFTs looks encouraging. The total revenue of labels will undoubtedly increase as they continue to engage with NFTs and create communities within their respective fields. Digital projects do not require the same production capacity or distribution requirements as real-life products, so they may prove more lucrative in the long run.
Sources: about.nike.com, dune.com, dappradar.com, www.analyticsinsight.net, cryptopotato.com, www.inverse.com
Previous
Next
