According to a report by blockchain analytics firm Nansen, royalties earned by nonfungible token (NFT) projects have reached their lowest point in two years. The data highlights the decline in NFT royalties before the recent drop in Bored Ape Yacht Club (BAYC) floor prices and the controversy surrounding the Azuki Elementals collection. Despite the overall decline, certain projects have still managed to earn significant royalties.
April 2022 marked the peak for NFT royalties, with creators earning an estimated $75.7 million in a single week. However, since then, royalties have experienced a decline. BAYC, created by Yuga Labs, has been a standout performer, earning a total of $165.5 million in royalties across its portfolio of NFT collections. RTFKT, known for collections like CloneX, has earned $79.9 million in royalties, while Azuki has garnered $58.2 million from its various collections.
Nansen emphasizes the significance of NFT royalties as they serve as an indicator of a studio’s financial foundation for ongoing development and revenue generation. Royalties play a crucial role in supporting project creators and ensuring the sustainability of their work.
Previously, OpenSea was primarily responsible for distributing royalty payments to NFT projects. However, the dynamics changed when rival marketplace Blur implemented a policy requiring a minimum of 0.5% royalties, unless projects opted out or enforced different percentages. OpenSea allowed buyers to choose whether to pay royalties unless projects specifically opted out or set different royalty percentages.
Nansen’s data reveals that the top 10 NFT collections have earned over $345 million in royalties, with Yuga Labs leading the way with $150 million, accounting for 44% of the top 10. Interestingly, only 20 NFT projects have earned more than $10 million in royalties to date, highlighting the concentrated nature of earnings in the NFT space.
NFT royalties have experienced a decline, reaching their lowest point in two years. However, despite the overall decrease, certain projects, such as Bored Ape Yacht Club by Yuga Labs, continue to earn significant royalties. The importance of royalties in supporting ongoing development and sustaining the NFT ecosystem remains crucial. NFT marketplaces like OpenSea and Blur play a role in distributing royalty payments, and the top-earning NFT collections have generated substantial earnings, emphasizing the potential profitability of successful NFT projects.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up