NFT Projects See Decline in Royalties as Market Changes
A report by blockchain analytics firm Nansen reveals a drop in NFT royalties as rival marketplaces implement new rules and top collections see changes in value.
Non-fungible token (NFT) projects have seen their royalties fall to the lowest level in two years.
According to a report by blockchain analytics firm Nansen, this decline in NFT royalties coincides with the recent drop in the floor price of Bored Ape Yacht Club (BAYC) NFTs and the controversy surrounding the minting of Azuki Elementals.
Yuga Labs, the creator of BAYC, has earned $165.5 million in royalties from its NFT collections, while RTFKT has earned $79.9 million from its collections. The research indicates that OpenSea is no longer the top provider of royalty payments, as rival marketplace Blur has implemented a rule requiring a minimum fee of 0.5% unless projects opt out or impose full percentages. Blur and OpenSea pay similar amounts in royalties, but Blur pays more when trading volume increases.
The top 10 NFT collections have generated over $345 million in royalties, with Yuga Labs accounting for 44% of the top 10 with $150 million in royalties. Only 20 NFT projects have generated more than $10 million in royalties.