The NFT, even after huge declines in trading volume in recent months, seems to have attracted the interest of investors - speculators in this market can still look for potential investment opportunities, and NFT projects are outdoing themselves with more and better unveilings of their venture.
Strong interest in NFT has naturally attracted the world's best-known apparel and accessories brands. According to data from Dune Analytics, Nike, Gucci, Dolce & Gabbana and Tiffany earned a total of $260 million from the sale of their NFTs.
Nike received the most revenue from NFT sales. Collections were sold for as much as $185.3 mln, with a secondary market turnover of $1.3 bln and more than 67,000 concluded transactions. In second place is Dolce & Gabbana, which earned $25.7 mln. They are followed by Tiffany ($12.6 mln), Gucci ($11.6 mln) and Adidas ($10.9 mln).
After the rise of the first big collections, such as Bored Ape Yacht Club and Crypto Punks, which generated billions of dollars in sales, it was the turn for global fashion brands. They began experimenting with technology to reach more customers and generate new revenue streams. There are minimal costs involved in selling NFTs, especially for companies with a such large following as Nike and Adidas, for example. Therefore, margins from token sales can be very high, and revenues mostly turn into pure profit.
Despite waning interest in NFTs, they can still have a significant impact on new trends in corporate branding. Nike and Adidas have already indicated that they intend to develop NFTs in the Metaverse, which could affect the perception of these brands as innovative and unique, also in the virtual world.
It's worth remembering, however, that an alarmingly large number of projects can't sustain a sufficient level of interest. After its peak at the first offering, excitement tends to drop in the secondary market, and with its prices. NFTs seem to have more resilience to decline if they are the equivalent of something real and have additional functionality.
One of the few success stories on the market is the collection of entrepreneur and influencer Gary Vee. VeeFrieds, despite the questionable quality of the graphics, produced a great return on investment. The print price of one NFT ranged from 0.5 to 2.5 ETH, and at the current value of the collection, early investors were able to make between 300 and 1,000% gains. In addition, the token gives the holder the right to participate in one of the leading NFT events - Beacon, organized by Gary Vee. The businessman also enjoys a very loyal following, who believe in the words and vision of the idol, so they are rather reluctant to sell their ownership rights, represented by the token.
Rafał Tworkowski, Junior Market Analyst, Conotoxia Ltd. (Conotoxia investment service)
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Source: Nike, Gucci and other big brands make millions from NFT sales despite falling interest
