Weekly NFT Report:NIKE successfully pioneered the NFT market
Summary
Crypto assets were consolidating at lower levels, with Bitcoin gyrating around $21.2k and ETH $1.6k. Crypto market cap just went below $1.1T. Open interest ($29B) and 24H trading volume ($98B) also dropped 1% and 8% respectively as JacksonHole event approaches. Volatility is expected during Fed Chair’s speech on Friday. Market expectation flipped once again, with 53% believes the Fed will take another hawkish move in September FOMC meeting, raising the interest rate by additional 75bps. August job’s report and CPI number will be closely watched next as crucial indicators for the Fed’s decisions.
Over the last 7 days:
Outperformers in Top 100: EOS (+25.8%), CHZ (+18.7%), EVMOS (+9.7%), BIT (+2.2%), ATOM (+2.1%)
Underperformers in Top 100: CEL (-38.1%), GMT (-28.4%), FIL (-26.4%), FLOW (-23.0%), DOGE (-22.7%), NEAR (-21.2%), MANA (-21.1%), AAVE (-21.0%), STX (-20.7%), AXS (-20.6%)
In the NFT space, OpenSea volume (Chart 1) remained plateau at low level ($16m), dropped more than 90% from the peak. The average daily volume over the last 10 days was $16.6m (-6.7%). One week prior to the end of August, the monthly volume (Chart 2, $386m now) is expected to end similar as July’s numbers ($528m), while August’s monthly NFT sales (1.1m sales now) is expected to end lower than July’s (1.7m sales). NFT market remained quiet as security and credit issues continued, with BendDAO users having credit crisis and Bored Apes selling at discount, SudoRare disappeared with users’ funds after launch. The web2 companies continued to express their interests on NFT developments after the success of Nike’s NFT sales.
Deep Dive
Nike earned $185m from NFTs
- The sportswear giant generated more than $185m in revenue so far, from its NFT-related projects, with $93m from primary sales and $92m from royalties of secondary sales. Nike significantly outperformed other fashion or sportswear brands in the NFT market, for instance, Dolce & Gabbana made $25m from its NFT sales, and Tiffancy&Co., Gucci and Adidas made only ~$12m.
BendDAO proposed emergency changes amid credit crisis
- As NFT market tumbled over last several months, even the blue-chip NFTs suffered during the downturn. Bored Apes holders who collateralized their NFTs on BendDAO to borrow other assets were in danger since the floor price dropped to 60eth and ETH price also plunged 20% to $1.6k. To save the protocol during credit crisis in this illiquid and volatile market, the team suggested to lower the liquidation threshold from 85% to 70% of loan value.
SudoRare rug pull on launch day
- SudoRare, a forked NFT platfrom from SudoSwap and LooksRare, ran off its users’ funds on launch day, approximately 520eth was gone ($850k worth). The team has also deleted all its social media accounts.
“Pudgy Penguins” rallied up
- The flightless bird NFT collection was running hot last week after Nansen and Meta executives joining the team’s advisory board, with floor price doubled to 4eth, taking the lead in the weekly ranking table on OpenSea. “Lil Pudgys”, the mini version of “Pudgy Penguins” followed, floor price went up from 0.17eth to 0.3eth.
Following
Big Money Raises, and Entrants
- Puma, a well-known sportwear company, entered NFT market with the launch of “Nitro Token”. The token was a free claim, which will then grant holders the rights to mint a “Nitropass” for 0.2eth on 26 Aug. The pass will give holders exclusive access to Puma’s future projects.
- Invesco, a world-wide asset management firm, launched a $30m metaverse-focused fund.
