NFTs In The Retail Landscape As Companies Leverage Their Use
Mainstream retail brands that jumped into the NFT bandwagon early are seeing positive results. Though NFTs have existed since 2014, their popularity skyrocketed in 2021, with trading volumes crossing $23 billion by the end of the year.
It was during this height of popularity that numerous prominent retail brands like Gap, Gucci, Dolce & Gabbana, Adidas, Nike, and others began embracing NFTs in a bid to prepare for the transition to Web3 and the Metaverse.
Underlining this successful approach, recent data published by NFTGators highlights that most of these brands have raked in millions of dollars from their NFT sales. The report revealed that Dolce & Gabbana’s total NFT revenue this year stands at around $25.6 million, with Gucci’s sales reaching approximately $11.5 million, and Adidas’ comparable figure totaling nearly $10.9 million.
Nike dominates this list, registering more than $185 billion from its digital sales. The data further indicates that Nike has generated nearly $1.3 billion in transaction volume via secondary trading of its NFTs, which adds to roughly $93 million worth of primary assets and has so far generated more than $92 million in royalties.
Back in 2021, Nike acquired RTKFT - the NFT startup behind the CloneX NFT collection. Nike purchased the platform within two weeks after the CloneX NFT collection was launched for auction, making it evident that the brand is interested in expanding its presence across Web3 and the Metaverse. Despite weak crypto market conditions, Nike’s NFTs transaction reached a total of 6.362 ETH in August 2022, cementing the idea that consumers are becoming increasingly receptive to NFTs.
There are several reasons behind this trend of an increasing number of mainstream brands embracing NFTs. For starters, the NFT ecosystem has evolved from a technology-dense niche for crypto and blockchain enthusiasts to an ecosystem that is now more user-friendly and accessible for the average consumer.
The accelerated adoption of mainstream technology like Web3 and the metaverse has also contributed to NFTs’ popularity, primarily because NFTs are acting as the bridge connecting these futuristic ecosystems.
Additionally, from a brand’s perspective, embracing NFTs gives them an additional revenue source and helps them connect with customers - most of whom hail from younger, tech-savvy generations. Several brands have already showcased that NFTs can be a proven way to improve brand awareness, customer engagement, and brand loyalty.
Beyond Luxury Brands
The good news is that this adoption isn’t just limited to mainstream brands. Several emerging blockchain projects are continuously unlocking new use cases, some of which can help lay the foundation for bigger brands to experiment further with NFTs.
Take, for instance, the case of the blockchain startup RSK (Rootstock Network). The startup recently announced that its partner, WakeUp Labs, has signed a long-term strategic collaboration with another climate-tech startup, Kilimo, to introduce the concept of “water neutrality” NFTs.
WakeUp Labs is an environmental-friendly protocol built on top of RSK. In partnership with Kilimo, WakeUp Labs will help verify the water consumption of agriculture-based businesses.
Through this tie-up, WakeUp will supply the required infrastructure to issue tokenized certificates (known as “Verification NFTs”) to all agricultural businesses and organizations that have established responsible water consumption models.
Each participant’s water savings will be reflected as an exclusive NFT minted on top of RSK. Accordingly, other businesses and organizations can purchase these NFTs to compensate Kilimo’s clients for contributing to reduced water consumption. Simply put, this model unlocks an additional revenue stream for agricultural businesses, organizations, and individuals who use water efficiently.
Another emerging solution that aims to unlock a new use case for NFTs is BridgeChamp. This play-to-earn game built on Jelurida’s Ardor blockchain leverages Jelurida’s unique parent chain-child chain architecture. The BridgeChamp team is currently working on adding more utility to its in-game rewards and NFTs by partnering with merchant stores, outlets, and other retail brands.
BridgeChamp is the first platform to facilitate on-chain bridge play. It has built an ecosystem where players can play casually and competitively. Players can also create or join tournaments, host competitions, practice their skills, and much more. The platform has integrated a real-world bridge play experience with blockchain technology, ensuring that anyone can access it from both mobile devices and web browsers.
It is important to note that, unlike other blockchain games that are deployed on top of the chain or a side chain, BridgeChamp is a native blockchain that operates as the child-chain of Ardor. Since child chains may have a few limitations, it also uses Jelurida’s Ignis blockchain as the parent chain to remove all limitations that Ardor exhibits. This approach essentially grants both developers and users access to all features that must be tailored specifically to meet real-world bridge gaming standards.