HomeNewsTwo-Year Lows: Ethereum NFT Royalties Reach Lowest Point Amidst Bored Ape Floor...

Two-Year Lows: Ethereum NFT Royalties Reach Lowest Point Amidst Bored Ape Floor Price Drop

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  • NFT royalties have seen their steepest decline in two years, shedding light on the revenue outlook for numerous NFT projects.
  • The floor price for Bored Ape Yacht Club NFTs has dipped below 30 ETH, indicating changing market trends in the NFT space.

Non-fungible token (NFT) projects have hit a rough patch, witnessing the lowest royalties in two years, according to a recent analysis from Nansen, a leading blockchain analytics firm. This trend presents a potentially worrying financial perspective for several NFT initiatives reliant on these royalties for sustenance and continuous development.

Back in April 2022, NFT creators enjoyed a massive surge in royalties, reaping an estimated $75.7 million in a week. Nansen’s data shows that Yuga Labs, the creator of the famed Bored Ape Yacht Club (BAYC), has raked in around $165.5 million in royalties from its suite of NFT collections.

Declining Revenues Across the NFT Landscape

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Other significant contributors to NFT royalties include RTFKT, earning $79.9 million from its collections such as CloneX, and Azuki, bagging $58.2 million from its different collections like Zuki and Beanz. Further, the studio behind Moonbirds, Proof, saw $35 million in revenues, and Doodles generated $27.4 million from various collections. Pudgy Penguins managed to earn a relatively modest $8.3 million across its NFT drops.

However, this declining trend in royalties is of paramount significance, considering they form the bedrock of a studio’s revenue, crucial for ongoing project development.

Historically, OpenSea, the leading NFT marketplace, played a vital role in disbursing royalty payments to NFT projects till 2023. But a shift was observed when rival platform Blur initiated a policy mandating a minimum of 0.5% royalties unless projects chose to opt-out or enforce full percentages.

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At present, both OpenSea and Blur are equally competitive in terms of royalties paid through their platforms. However, Blur experiences an uptick in royalties paid when the trading volume experiences a surge.

It is also noteworthy that the top 10 NFT collections have reaped over $345 million in royalties, with Yuga Labs accounting for 44% of the top 10 at $150 million. To date, only 20 NFT projects have earned over $10 million in royalties, indicating a further concentration of wealth in the NFT space.

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Jane Smith
Jane Smith
As a Bitcoin Journalist, I am dedicated to reporting the latest developments in cryptocurrency, with a particular focus on Bitcoin. Through extensive research and interviews with industry experts, I provide accurate and up-to-date information on the ever-evolving world of cryptocurrencies. My goal is to help readers stay informed and make informed decisions regarding their investments in this rapidly changing field.
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