Nike’s NFT revenue reaches $185 million, $92.21 million in royalties alone
Sportswear giant Nike has received over $185 million in revenue from the sale of its NFTs, outselling other fashion brands by a wide margin. The American shoemaker made 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 has been the most successful company with its NFTs. The American shoemaker has raked in over $185 million from the sale of its NFTs.
The analysis further shows that Nike has received over $93 million in royalties, which are payments that compensate original NFT creators for the use of their virtual artwork in the secondary marketplaces. The company’s NFT collection has earned $93 million in primary sales and $92 million in secondary sales to date.
In comparison, other companies have not had much success. For example, the clothing brand Dolce & Gabbana, which is the second best company in terms of NFT revenue, has earned around $25 million from the sale of its NFTs. Other major fashion brands such as Tiffany, Gucci and Adidas have each made between $11 and $13 million from NFT sales.
As reported, Nike acquired RTFKT, a virtual sneaker company that makes NFTs and digital sneakers for the metaverse, in mid-December of 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 RTFKT acquisition came after the footwear giant unveiled Nikeland, a virtual 3D space where fans can “connect, create, share experiences and compete” in November 2021. In fact, Nike’s interest in blockchain dates back to 2019, when the company started exploring blockchain- technology to symbolize the ownership of exclusive shoes.
Earlier this year, Nike and RTFKT unveiled their first collection of virtual sneakers. Called CryptoKicks, it was a collection of 20,000 digital wearables apparently designed for use in metaverse worlds.
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NFT market falls amid prolonged crypto winter
In the midst of prolonged crypto winter, the market for NFTs is also plunging. NFT sales volumes have fallen to their lowest levels in more than a year, and the floor price of blue-chip collections has also taken a hit.
According to NFT data aggregator CryptoSlam, NFT sales volume in USD terms over the Ethereum blockchain has fallen to around $10 million in recent days, reaching the levels of late July 2021, and down nearly 98.5% from its all-time high of 628 million dollars. recorded May 1, 2022.
Likewise, the floor price of blue-chip NFT collections has been hit hard. For example, the floor price of Bored Ape Yacht Club has recently fallen to 66.9 ETH, the lowest level in more than six months. The collection’s floor price has fallen by 13% in the last week and by 23% in the last month.
The continued growth of Nike NFTs even during the NFT market downturn may indicate that companies and large corporations can also benefit from this technology – especially if these companies incorporate use cases into their NFT projects.
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About the author
Ruholamin Haqshanas is an accomplished crypto and financial journalist with over two years of experience writing in the field. He has a solid grasp of various segments of the FinTech space, including the decentralized iteration of financial systems (DeFi), and the emerging market for non-fungible tokens (NFT). He is an active user of digital assets for money transfers.
