Luxury outpaces other industries with NFT falls, new research
When it comes to NFTs, luxury and fashion brands rule the roost. A recent study entitled “Which industry has the most NFTs?” by leading crypto market analyst CoinGecko highlights that the apparel and luxury goods industry has witnessed the most NFT launches since 2020, compared to other sectors such as media, entertainment, automobiles and beverages.
The report examines a number of “traditional brands” across the sector, defined as companies with core businesses unrelated to NFTs or cryptocurrency. These labels have an international presence headquartered in either Europe or the US and are categorized according to MSCI’s widely recognized Global Industry Classification Standard (GICS)®.
The findings revealed that 37 percent of apparel and luxury goods companies have launched their own NFT collections since 2020, corresponding to 19 of the 51 names surveyed. This is a leap ahead of the media industry, which came in second with only nine brands issuing non-fungible tokens over the past three years. Some of the fashion NFT dips with the highest trading volume to date include Adidas at 47,000 ETH, Nike at 7,502 ETH, Dolce & Gabbana at 4,757 ETH and Gucci at 4,623 ETH. Last added to the list was Puma’s Nitro Token and Nitropass, and Tiffany & Co.’s NFTiff collection which dropped in August this year, albeit to a mixed response across social channels.
CoinGecko’s recent study “Which Industry Has the Most Branded NFTs?” highlights how the luxury and apparel sector is charging forward in terms of non-fungible drops. Photo: CoinGecko
“Despite the current bear market conditions, many of these ‘traditional’ companies are leveraging NFTs in their branding and marketing efforts, as a way to engage the public and communities,” commented COO and co-founder of CoinGecko, Bobby Ong. “It will be interesting to see how this trend holds next year – and whether brands in industries outside of this list unlock NFTs in their marketing strategies.”
As its popularity explodes across web-based terrain, a number of big names in luxury have been quick to proclaim themselves Web3 early adopters and reveal their own metaversal ambitions, whether through phygital dropsexclusive token-protected experiences, or collaborations with the likes of Roblox and Zepeto on virtual collaborations.
Consumers may still be dubious about the true value of these digital assets, but evidence like this study shows that Web3’s luxury fashion landscape continues to grow. The number of brands that entered the metaverse the past month alone suggests that this space will only become more saturated over the next quarter and into next year.
Could 2023 be the year when virtual luxury officially finds its footing and gains mainstream appeal? If so, for many brands that have been hesitant to enter the digital dimensions, the time to dive in may be right now.
