Non-fungible tokens (NFTs) are a potentially interesting revenue source for companies. Some are drawn by chance to develop closer relationships with their followers, while others are only focused on increasing revenue per user through NFT drops and merchandising. NFTs are bringing in millions of dollars for companies like Nike, Dolce & Gabbana, Tiffany, Gucci, and Adidas.
However, Nike seems to have discovered the ideal formula, fusing virtual adventures with its legendary metaverse trademark rights to generate a staggering $185 million in revenue from NFT sales. In order to advance its web3 strategy, Nike purchased NFT startup RTFKT in December of last year, as TheCoinRise reported.
Nike's NFT-related projects have made over $185M in revenue, positioning it as the biggest earning brand from NFTs.@DuneAnalytics dashboard by @nlevine19. pic.twitter.com/UDD90kz8Af
— NFTgators 🐊 (@NFTgators) August 22, 2022
In addition to $93 million in primary sales and $92 million in royalties, the company has gathered nearly $1.3 billion in transaction volume from secondary trading of its NFTs, according to data compiled by Dune Analytics.
The Sneakers-themed NFT collection MNLTH, which brought in $24.22 million for the sportswear company, came in second place after CloneX on Nike’s list of collections with the largest royalty fees earned, with $39.93 million.
The following collections have also brought in at least $1 million in royalties: Skin Vail: EVOX, MNLTH2, Mint Vial, RTFKT Pod X, CryptoKick, and RTFKT Bonus Items.
Nike enjoying NFT bet
Nike registered 6,362 ETH last month despite the fact that their overall NFT transactions have decreased over the past three months. Its greatest month was April, when it brought in 12,776 ETH, surpassing the equivalent of 11,357 in December 2022, the month it purchased RTFKT.
Although D&G, Tiffany, Gucci, and Adidas, who has collected $25.6 million, $12.6 million, $11.5 million, and $10.9 million, respectively, are Nike’s closest competitors, a large portion of Nike’s enormous success in the NFT area may be traced to its acquisition of RTFKT.
The consequences of the connection are open to debate. It would seem, though, that for mainstream companies, acquiring a fully web3-focused business as part of their web3 strategy is likely to produce greater outcomes than establishing short-term collaborations.
