NFT royalties, which are the payments that artists and creators receive for their NFTs, have reached their lowest point in two years, according to blockchain analytics firm Nansen. In April 2022, NFT royalties peaked at $75.7 million in a single week.
However, recent events such as a drop in the floor price of Bored Ape Yacht Club (BAYC) NFTs and controversy surrounding the launch of the Azuki Elementals collection have contributed to the decline. Additionally, a prominent BAYC holder named Franklin sold 27 of his Bored Apes, and along with Machi Brother, a controversial figure, they sold 50 Apes in a single weekend.
Nansen’s data highlights the significance of NFT royalties as a measure of ongoing revenue for project development. Yuga Labs, the creators of Bored Ape Yacht Club, have earned the highest total royalties of $165.5 million across their NFT collections. RTFKT has earned $79.9 million, while Azuki has earned $58.2 million from its various collections.
On Sunday, the floor price of Bored Ape Yacht Club (BAYC) NFTs dropped below 30 ETH (around $58k), the lowest since October 2021. This price decline is likely due to the overall NFT market, including events like the Azuki Elementals reveal and the massive sale of NFTs by Franklin and Machi Brother.
Previously, OpenSea was the primary platform for distributing royalty payments, but the situation changed in 2023 when Blur, a rival marketplace, implemented a policy requiring a minimum of 0.5% royalties. Currently, OpenSea and Blur are on par with each other regarding royalties paid, with Blur surpassing OpenSea during periods of high trading volume.
The recent drop in NFT prices can be attributed to scams and theft of NFTs. According to a report by Peckshield on July 3rd, approximately $2.27 million worth of NFTs were stolen. Half of these stolen NFTs were sold within just 160 minutes on popular NFT marketplaces like OpenSea and Blur.
The stolen NFTs worth $2.27 million represent the lowest monthly figures for stolen NFTs in 2023 thus far. In February, the highest figures for the year were recorded, with stolen NFTs worth $16.2 million. This indicates an 85% decrease from that peak in June.