James Atkins
Editor
Editor
Yuga Labs is the top royalty earner among creators, with Nike topping the consolidated list amongst global brands in NFTs.According to Galaxy digital‘s latest research, Ethereum-based NFT royalties have surpassed the $1.8 billion market. Despite recent controversies in the industry around the royalty model.
Despite the current difficulties faced by the crypto market, data shows that royalty payments have increased over the past year. These payments reflect a percentage of the resale value secondary sellers pay to creators and are given across some of the top NFTs.
Galaxy Digital’s report shows that, on average, creators have earned 6% royalties from OpenSea- this is up 3% from before. Not to mention, OpenSea has processed more creator royalty payments than any other platform.
“OpenSea is the leading NFT marketplace, comprising more than 80% of all NFT transaction volume. Additionally, their method for royalty distribution has become the standard among marketplaces.” Galaxy Digital researchers noted.
Some NFT platforms, like Solana-based DeGods and Magic Eden, have removed or made royalties optional. Because of the difficult issue of royalty enforcement at the marketplace level.
On Friday, October 21st, Galaxy Digital published a report which contained information regarding the percentages of royalties given to different creators.
The top 10% of creators received 27% of the total amount, equating to over $489 million. Out of all 482 collections that generated NFTs, only 80% yielded any form of royalty payments whatsoever.
The top ten most successful creators in terms of royalty earnings were. Bored Ape Yacht Club creator Yuga Labs, OpenSea Storefront Creator, Art Blocks, Chiru Labs (Azuki),The Sandbox game Doodles; PROOF Collective, NFT Worlds and World of Women and VeeFriends social media platform.
While Yuga Labs earned $147.6 million, Art Blocks and OpenSea Storefront respectively accumulated $82 million and over $76 million in royalties.
Nike made the most money from NFT-based royalties in the past year with over $91 million. Adidas was next with more than $4.7 million, and then Puma with $1.5 million.
What it means is that Ethereum-based NFT brokerages are generating significant revenue. And the market is ripe for continued growth and adoption. As more creators, brands, and individuals jump on board, we can expect to see even higher earnings in the future.
Galaxy Digital CEO Mike Novogratz states, “Just like any new technology or asset class there will be challenges along the way, but it’s clear NFTs are here to stay.”
He adds, “We believe the industry has entered a new phase of maturity as evidenced by the increasing diversity of projects and participation from a broadening set of market participants.”
As Ethereum continues to lead the way in this space. It will be exciting to see how NFTs evolve and disrupt traditional industries. This article will not be complete without highlighting the leading firms in the research.
Galaxy Digital is a full-service, digital assets merchant bank that was founded in 2018 by Novogratz. It offers investment management, portfolio management, and advisory services for both institutional and individual investors.
Other notable Ethereum-based NFT brokerages include Dapper Labs (creators of NBA Top Shot), Rarible, and OpenSea. These firms have seen a significant uptick in activity as the NFT market continues to boom.
In addition to Galaxy Digital’s research. Ethereum-based NFT brokerage Yuga Labs recently announced that it has reached a total transaction volume of $1 billion.
The firm offers services for both individual collectors and large institutions, including the ability to mint, buy, sell, and manage NFTs.
The $1.8 billion earned by Ethereum-based NFT brokerages is only a fraction of the overall market. Which has already reached over $2 billion in 2021 alone. This shows the potential for continued growth in this rapidly expanding
What do you think of the NFT craze? Let us know in the comments.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
