Nike's NFT Revenue Surpasses $185 Million. The second quarter of 2022 was marked by a 40% drop in NFT trading volume. This is partly justified by the weakening of the interest expressed by investors for NFTs, but also by the current bear market which continues to create a situation of doubt in the market.
However, while the majority of NFT owners have seen a drop in the value of their possessions, global sports brand Nike has managed to capitalize on the NFTs it has previously released.
Nike is far from the only company in the fashion industry interested in the concept of NFTs and the Metaverse. Many companies belonging to the industry are closely watching the evolution of new digital technologies and are promoting operations more and more regularly in the crypto environment.
Nike dominates the fashion and luxury industry in the crypto sphere
According to data collected by Dune on August 22, Nike's NFT - related projects have brought the company more than $185 million in revenue. Revenues that are not only very surprising given the crisis that the cryptocurrency market is experiencing today, but which position Nike as the fashion and luxury brand that earns the most from NFTs.
However, despite their impressive earnings, the prices of Nike NFTs have declined since their all-time highs in February and April 2022. As of August 22, the average value of these NFTs was $23,986.
Several reasons can explain the initial rise of NFT offers in the field of fashion. Nevertheless, the main reasons stem from a combination of branding and marketing efforts.
Indeed, to promote NFT products, partnerships have been signed between several brands, such as Adidas and BAYC, or the acquisition of RTFKT by Nike. Companies have also solicited celebrities to buy their products and have them appear in music videos.
The recent decline of the NFT market
It turns out that all of these promotions were just temporary, so once they slowed down, the evolution of NFTs drastically reduced. Thus, as early as March, the volume of NFT transactions on the world's largest marketplace, OpenSea, had already fallen by more than 70%. Meanwhile, a survey of members of the cryptocurrency community found that over 30% of them say they have no interest in NFTs.
Also, while it is true that 2021 was a very good year for NFTs and their evolution, their success was mainly based on natural curiosity. As the latter has faded, cryptocurrency users no longer seem as interested in this new technology as they were a year ago.
However, this lack of interest does little to hold back fashion brands in their race toward the NFT market. An analysis reveals that Nike, Dolce & Gabbana, Tiffany, Gucci, and Adidas represent the top five brands in terms of total NFT revenue. The same analysis shows how lucrative NFTs have become for some of the biggest brands in the world.
What is the interest in digital for the fashion industry?
While it is true that at first glance the idea of a digital fashion system can be quite difficult to grasp, it is one of the niche markets that are experiencing very rapid change today. Its growing popularity is causing many experts to take the idea that the Metaverse has the potential to revolutionize the fashion industry much more seriously.
So one of the strengths of the virtual and therefore of the Metaverse is that you can replace the physical samples often held in stores, with digital samples during the design and development phases of a company. According to some studies, it is possible to reduce the carbon footprint of a brand by 30%.
Apart from these already very impressive elements, the use of digital wearables can also have a huge impact on the business side of the industry. Indeed, digital apparel models can be used to alleviate problems related to overproduction, a phenomenon that still affects many companies today.
In addition, with the Metaverse, it is potentially possible to create your own avatar and try on any type of clothing. Even if it seems to interest the younger generations more, it is a concept that is spreading and seems to appeal more and more. This could impact the way people dress in the future, just as it is extremely powerful marketing to have the possibility of dressing virtually in an almost unlimited way before ordering the desired garment.
Despite a general decline in the crypto market and at the same time that of NFTs. There is still a certain enthusiasm for this area, particularly on the Play to Earn (P2E) side with the upcoming arrival of Tamadoge or Battle Infinity.
0 Comments