Royalties earned by non-fungible token (NFT) projects have hit a two-year low, according to a report by blockchain analytics firm Nansen.
The data shared with Cointelegraph highlights that NFT royalties were at a low point prior to the recent drop in Bored Ape Yacht Club (BAYC) NFT reserve prices and the fallout from the controversy surrounding the launch of the Azuki Elementals collection.
NFT royalties peaked in April 2022, with creators earning an estimated $75.7 million in a single week. BAYC creator Yuga Labs earned a total of $165.5 million in royalties across its portfolio of NFT series, according to Nansen. RTFKT h as earned a total of $79.9 million in royalties from its line of products, which include products like CloneX. Azuki's zuki, Beanz, Elemental Beansa and Elementals collections have grossed $58.2 million.
Proof, the studio behind Moonbirds, netted $35 million, while Doodles earned $27.4 million from its Doodles, Space Doodles, Genesis Box and Dooplicato collections. Pudgy Penguins' Pudgy Penguins, Lil Pudgys and Pudgy Rods earned $8.3 million. Nansen emphasized the importance of NFT Royalties as an indicator of the financial foundation of a studio's continued growth, as they play an important role in generating revenue.
Until 2023, the NFT marketplace OpenSea is primarily responsible for distributing royalties to NFT projects. That trend changed once rival marketplace Blur implemented a policy requiring at least a 0.5% royalty (unless a project opts out or en forces the full percentage), the report noted .
OpenSea allows buyers to choose to pay royalties unless the project opts out or imposes a specific percentage:
“Currently, OpenSea and Blur are neck and neck in terms of royalties paid through their respective marketplaces, and Blur will pay more in royalties when volumes spike.” Nansen's data also shows that the top 10 NFT collectibles have earned more than $345 m million in royalties . Yuga Labs earned $150 million in royalties and accounted for 44 percent of the top 10. Interestingly, there are only 20 NFT projects with royalties over $10 million to date.
