By
Chimamanda U. Martha
April 22nd, 2024
It is said that Nike’s success at NFT sales is traceable to its acquisition of RTFKT studios.
Footwear giant Nike has amassed NFT sales of about $185 million to become the highest earning brand from NFTs. According to Dune Analytics, Nike made sales across 67,000 transactions.
Also in the top five are Dolce & Gabbana (D&G), Tiffany, Gucci, and Adidas. Quite rightly, one can conclude that fashion brands seem to have found a new income stream for their businesses.
Revenue Not Dependent on Volume of NFT Sales
Asides from primary sales worth $93 million, Nike gained about $1.3 billion in transaction volume from secondary sales. The firm also generated $92 million as royalties.
What’s immediately obvious is that the total revenue seems to be independent of the volume of NFT sales. While Adidas ended in fifth place with $10 million in total revenue, it had the second highest volume of transactions at about 51,400.
Others like D&G generated more money in fewer transactions. D&G made $25 million across about 9840 transactions, while Tiffany made $12 million across 74 transactions. Also, Gucci had $11 million across about 4000 transactions.
Nike’s Open Secret
Meanwhile, there are indications Nike’s success at NFT sales is traceable to its acquisition of RTFKT studios. Barely two weeks after RTFKT launched the CloneX collection, Nike acquired the firm in December 2021.
CloneX has attracted the highest royalty fees for Nike, with over $39 million. RTFKT is responsible for creating most of Nike’s NFT collections, including MNLTH, which generated $24.22 million. It also made the Mint Vial which amassed $15.06 million.
Compared to others who merely formed strategic partnerships with web3 companies, an acquisition seems like a better way to go.
Despite topping the list, it’s worthy of note that Nike’s total transactions have slowed after peaks in December 2021 and April 2022. This data isn’t surprising since general NFT sales have also dipped. From peak sales of about 210,000 last August, the market crashed with the decline in the cryptocurrency market. The total sales volume for the week stands at 19,000 transactions and $6 million in sales.
Notwithstanding the decline, some collections continue to dominate the charts weekly. The Bored Ape Yacht Club NFTs sits atop the list. According to NFTgator, all the top 10 NFT collection sales within 24 hours were BAYC sales. The most expensive BAYC sold out for 150 ETH.