Big brands are starting to see revenue from their NFT sales
The 2021 NFT craze has swept almost every industry and made non-fungible tokens a household name across the globe, making NFTs, which were once reserved for only a small niche of crypto enthusiasts, attract the attention of legacy brands that have joined the craze.
After purchasing sought-after NFT collections like the BAYC or Cryptopunks, many legacy brands have delved deeper into the ecosystem by issuing their own non-fungibles. At the time, companies making their own NFTs were certainly newsworthy, with brands like Nike, Adidas, Dolce & Gabbana, and Tiffany frequently appearing in crypto headlines.
As the weeks passed, the viscous crypto news cycle drowned out stories about NFTs issued by these brands, and they disappeared from the industry radar. Many have started to wonder how these NFT collections have withstood the bear market and how brands have benefited from their sales.
According to data from Dune Analytics, among all the brands that issued NFT collections on Ethereum, Nike ranked first with a total revenue of $185.27 million. Nike pocketed $93.10 million from the main sale of its NFTs and an additional $92.17 million from royalties.
The Cryptokicks collection recorded over 67,250 secondary market transactions and recorded $1.29 billion in secondary volume, nearly ten times what its competitor Adidas recorded.
With total sales of $25.65 million, haute couture giant Dolce & Gabbana ranked second. Of the $25.65 million, only $2.52 million came from royalties, as its Genesis Virtual Collection only had around 9,000 secondary transactions.
Tiffany recorded the third-highest earner in its NFT collection, pocketing $12.62 million. However, his collection of 250 “NFTiffs” returned no royalties as their owners all exchanged the tokens for personalized Cryptopunks pendants.
Gucci is following in the footsteps of Dolce & Gabbana, which made $11.56 million in revenue from NFTs. His NFT collection has seen over $31 million in secondary volume.
And while Nike’s main competitor, Adidas, recorded just $10.94 million in revenue, its NFT collection did significantly better in the secondary market. The “Adidas Originals Into the Metaverse” collection grants owners exclusive rights to Adidas products throughout the year and has recorded over 51,000 secondary market transactions, generating $175.65 million in volume.
Budweiser, Time Magazine, and Bud Light recorded total revenues of $5.88 million, $4.60 million, and $4 million from their NFT collections. Neither Budweiser nor Bud Light made any profit from the royalties. The Australian Open and Lacoste pocketed $1.70 million and $1.11 million from their collections.