NFT royalties at their lowest since 2021

In Junethe designers from NFT collections have collected 2000 ETH or 3.8 million dollars from royalties on the trading of their tokens. A decline which can be explained by the decline of theactivity and the policy from marketplaces.

The NFT market, like the cryptocurrency market, is going through turbulence after the bull-run of 2022. In particular, this is reflected in a falling royalties collected by the collections’ creators on each transaction, points out Coindesk.

According to Nansen’s data, in June 2023the total amount of royalties collected amounted to 3.8 million dollars or around 2,000 ETH. Two years earlier, in 2021to find a figure this low.

76 million in royalties by April 2022

Just over a year earlier, in April 2022NFT royalty payments peaked at 28,000 ETH – equivalent to nearly $76 million. Since then, the market for non-fungible tokens has changed radically.

The decline in trading is not the only explanation. In a bear market marketplaces are in fierce competition with each other and the royalties have become a major competitive factor.

Some players have simply decided to delete these royalties, much to the displeasure of the creators of NFT collections. The clash between the two reference platforms, Blur and OpenSealed to the optional payment of royalties.

The fee war between marketplaces to attract traders

To continue receiving these fees, creators must specify this in their smart contract. Otherwise, fees fall to 0.5% on OpenSea, the market leader. On Blur, fees are set at 0.5%.

Collectors may, however, choose to contribute at a higher rate. This decision is left to the voluntarism. So, a priori, it’s not the norm among buyers, while NFTs are recording significant losses in value.

Royalties remain a significant source of income for the market’s leading collections, such as Yuga Labs. Through its various NFTs, the company responsible for a third of this market’s volume has collected almost 166 million dollars.

According to Nansen, the NFT collective Chiru Labs has raked in over $58 million in royalties from its flagship Azuki collection, as well as from its secondary series Beans and Elementals – despite a major controversy over the latter.

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