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- Royalties in Ethereum-based NFT projects like BAYC dropped to a two-year low amid the major slowdown in the NFT market.
- Nansen data shows the top 10 NFT collections have made more than $345 million in royalties, with Yuga Labs having a 44 percent share.
Blockchain analytics firm Nansen recently reported that royalties earned through non-fungible tokens (NFT) projects have reached their lowest points in the last two years. Earlier this week, the floor price for some of the top NFT projects such as the Bored Ape Yacht Club (BAYC) tanked severely, especially after a major controversy surrounding the launch of the Azuki Elementals collection.
Last year in April 2022, the NFT royalties touched their peak with creators accumulating an estimated $75.7 million in a single week. As per the data shared by Nansen, BAYC creator Yuga Labs earned a total of $165.5 million in royalties across its entire portfolio of NFT collections.
Other players have also been making a hefty amount through royalties. RTFKT has made a significant sum of $79.9 million in royalties from its various collections, featuring popular items like CloneX. Similarly, Azuki has earned an impressive $58.2 million from its collections, which include Zuki, Beanz, Elemental Beansa, and Elementals.
Proof, the studio responsible for Moonbirds, has generated $35 million in revenues. Meanwhile, Doodles has accumulated $27.4 million from its collections, which include Doodles, Space Doodles, Genesis Box, and Dooplicato. Pudgy Penguins has earned $8.3 million in revenue from its Pudgy Penguins, Lil Pudgys, and Pudgy Rods drops.
According to Nansen’s data, the top 10 NFT collections have made more than $345 million in royalties. Yuga Labs’ royalties alone amount to $150 million, making up 44 percent of the top 10. It’s worth noting that only 20 NFT projects have earned over $10 million in royalties so far.
NFTs and Royalties
Nansen emphasizes that NFT royalties are crucial for a studio’s financial stability and continued growth because they help generate revenue. The world’s leading NFT marketplace OpenSea has been one of the leaders in distributing royalties to NFT projects until 2023.
The Nansen report noted that this trend changed after rival marketplace Blur implemented a policy requiring a minimum of 0.5 percent royalties unless projects enforced full percentages or opted out. Later, OpenSea started giving buyers the choice to pay royalties unless the projects opted out. In the report shared with Cointelegraph, Nansen noted:
Currently, OpenSea and Blur are on par with each other when it comes to the royalties paid through their respective marketplaces, with more royalties paid on Blur when the trading volume surges.
The last week’s launch of Azuki Elementals mint initially triggered a strong response from the Web3 community. However, NFT enthusiasts soon started complaining about ‘Identical’ Elemental Art. Many NFT owners and creators have taken to social media to express their discontent with the similarity between the artwork of the Azuki Elementals and the original anime-themed Azuki PFPs. This triggered a major correction in the entire NFT market including some of the top projects such as BAYC.
