January 28, 2023

Galaxy Digital has published an exclusive report mentioning that up to $1.8B worth of royalties has been given to the developers of the NFT collections based on Ethereum. The report additionally pointed out that in 2021 the average amount of royalties existing on the OpenSea venue has elevated from three percent to double that (six percent).

Galaxy Digital’s Report Says NFT Developers Have Secured $1.8B in Royalties Up Till Now

This is noteworthy, keeping in view that the position of OpenSea is that of the biggest marketplace of NFTs in terms of its trading volume, as per DappRadar.

In addition to that, Galaxy Digital mentioned that ten names keep nearly twenty-seven percent of the cumulative market share of the royalty payments. Yuga Labs, known as the developer of the Bored Ape Yacht Club (BAYC) NFTs, has collected the majority of royalties.

Also Read:  Binance (BNB) Coin: Uptrend Breakthrough From $500 Price Point May Ignite Long Opportunities

The venue has witnessed more than $147M in payouts up till now. As per the data provided by Dune analytics and referred to in the respective report, an amount of nearly $91.6 was made by Nike – the platform which obtained RTFKT (a startup of digital collectibles) – in consolidated non-fungible token royalties.

Apart from that, the rest of the real-world companies such as McLaren Nickelodeon, Adidas, Gucci, and others have also earned from NFT royalties although the amount collected by them is much lower than the prominent Web3-based entities including World of Women, Doodles, The Sandbox, Art Blocks, and so on.

Also Read:  MTN, Biggest Telecommunication Giant In Africa Invests In The Virtual World

In August 2022, X2Y2 (a marketplace for non-fungible tokens) incorporated an optional structure of royalty payments for purchasers.

In the same vein, in the previous week, Magic Eden (the NFT platform based on Solana) decided to leave the responsibility of the royalty payments’ number on the collectors. NFT royalty counts as a comparatively unique phenomenon while looking at the whole history of the NFT world, per the report.

Report Cautions the Top NFT Brands Could Lose Significant Revenue without Royalties’ Enforcement

It noted that well-known brands with collections of non-fungible tokens tend to be deprived of the majority of revenue due to faulty royalty structures.

Also Read:  More To Come From Binance Following Middle East Expansion, Says CEO

In the words of the report, in addition to the individual developers, chief brands including Adidas, Gucci, and Nike would expectedly lose the potential revenue of several million dollars without the enforcement of the royalties.


NFTMetaverseFinance is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site (namely Branded Voices content) is paid content that is not written by our authors and the views expressed do not reflect the views of this website. Any disputes you may have with brands or companies mentioned in our content will need to be taken care of directly with the specific brands and companies. The responsibility of our readers who may click links in our content and ultimately sign up for that product or service is their own. Cryptocurrencies, NFTs and Crypto Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.


Leave a Reply

Your email address will not be published. Required fields are marked *