Last Updated on October 1, 2022
Quick take:
- NFTs are turning out to be a gem for fashion brands.
- Leading brands have generated at least $1 million for a total of $260 million.
- Nike tops the list with a whopping $185 million revenue from NFT sales.
Non-fungible tokens (NFTs) are becoming an exciting revenue channel for businesses. Often dismissed as a passing fad, or a frenzy generated by the Fear of Missing Out (FOMO), companies worldwide have made NFTs a key ingredient in their strategies.
Some, are attracted by the opportunity to establish deeper connections with their fans; others are simply interesting in optimising the revenue per user through NFT drops and merchandise.
But Nike seems to have found the perfect mix, blending virtual experiences with its iconic branding rights to net a whopping $185 million in revenue from NFT sales. The company acquired NFT startup RTFKT to accelerate its web3 strategy in December last year.
Dolce & Gabbana (D&G), Tiffany, Gucci, and Adidas join Nike in the list of the top five fashion brands leading a wave of businesses looking to take advantage of the rapid adoption and growth of NFTs in the mainstream.
According to the data compiled by @kingjames23 on Dune Analytics, Nike has amassed nearly $1.3 billion in transaction volume from secondary trading of its NFTs to add to $93 million worth of primary sales, whilst also generating $92 million in royalties.
CloneX tops Nike’s list of collections with the highest royalty fees generated with $39.93 million, followed at a distance second by Nike Sneakers-themed NFT collection MNLTH, which generated $24.22 million for the sportswear brand.
Other collections that have generated at least $1 million in royalty fees include Mint Vial, MNLTH2, CryptoKick, Skin Vail: EVOX, RTFKT Pod X, and RTFKT Bonus Items.
To bring things into context, Nike acquired RTFKT, the creator of the CloneX NFT collection barely two weeks after Clonex launched for auction.
The NFT company is behind most of Nike’s NFT collections, including MNLTH and MNLTH2, as well as, Mint Vial, among others.
Although Nike’s total NFT transactions have slowed over the last three months, the company still managed to register 6,362 ETH last month.
Its best month came in April when it raked in 12,776 ETH, outperforming December 2022’s equivalent of 11,357, the month it acquired RTFKT.
Although Nike appears light years ahead of the chasing pack (D&G, Tiffany Gucci, and Adidas, which have amassed $25.6 million, $12.6 million, $11.5 million, and $10.9 million, respectively, much of Nike’s massive success in the NFT space could be tracked to its acquisition of RTFKT.
The implications of that relationship are up for interpretation. However, it would appear that for mainstream businesses, buying a pure web3 company as part of their web3 strategy is bound to yield better results than forming temporary partnerships.
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