eBusiness Weekly
The non-fungible token (NFT) market has been in a freefall. After seeing a record US$17 billion in trading volume across all platforms in January 2022, we’ve seen a significant drop in volume virtually every single month since—with August currently not even on pace to reach US$800 million in total trading volume.
That would represent a 95 percent drop in monthly trading volume, and to some people, mark the end of what they believe is a bubble by loose monetary policy.
Part of this drop in trading volume can be attributed to a 66 percent decline in Ethereum’s price — going from a high of US$4 800 on November 8 to US$1 600 today. Still, venture funding has largely dried up, the bears have become much more vocal, and passionate believers of the space have gone on the defensive.
But rather than debate the intrinsic value of the NFT space in the face of increased volatility — I think everyone has enough knowledge at this point to decide for themselves whether these assets, products, and services are valuable—this feels like a good time to check in on which brands have been the most successful.
Looking at transaction data, Nike has had the most success of all major brands in the NFT space. They have generated US$185 million in revenue across 67,251 transactions. At US$185 million in total NFT revenue, Nike has made more money from NFT transactions than the rest of the list combined, including companies like Dolce & Gabanna, Tiffany, Gucci, Adidas, and Budweiser.
Now, these statistics are slightly misleading because Nike acquired RTFKT late last year, a company already leading the space in creating virtual sneakers, collectibles, and experiences. That provided Nike with a significant head start on everyone else, even though US$185 million in NFT revenue represents less than 1 percent of Nike’s US$46,7 billion in annual revenue. What happens next. It’s pretty easy for a big company to jump on a trend and make some quick cash; the key is seeing which brands had real conviction, built during the bear market, and emerge from the ashes in a position to dominate a new market. Will that be Nike? Their early success is undoubtedly impressive. — Huddle Up Newsletter.
