NFT Market Sees $562 Million in Monthly Sales; Nike Shuts Down RTFKT

The non-fungible token (NFT) market is showing signs of recovery, recording impressive sales figures in November. In this week’s Nifty Newsletter, we explore how NFT sales reached $562 million in November, marking a significant surge in sales volume. However, not all news from the NFT space is positive, as popular NFT project RTFKT, acquired by Nike in 2021, announces it will be winding down operations. Additionally, Yuga Labs has expanded its operations with the acquisition of the Tokenproof tech team to boost its NFT research and development division.

NFT Sales Surge to $562 Million in November

The NFT market saw a substantial rebound in November, with monthly sales volumes hitting $562 million, marking a 57% increase over the previous month. This surge in activity represents the highest sales recorded in the NFT space in six months, indicating a positive shift in market sentiment. However, while the increase is notable, it still falls far short of the $1.6 billion in sales achieved in March 2024, which remains the highest sales volume for NFTs this year.

Among the notable success stories from November, the floor price of the popular NFT collection CryptoPunks saw significant growth. At the beginning of the month, the floor price for CryptoPunks was around 26 Ether (ETH), valued at approximately $3,856. By November 30, the floor price had risen to nearly 40 ETH, reflecting increased demand and renewed interest in the collection.

Nike-Owned RTFKT to Shut Down in January 2025

In a surprising turn of events, RTFKT, the NFT wearables project acquired by Nike in 2021, announced that it will cease operations in January 2025. Originally launched in 2020, RTFKT raised approximately $8 million from investors, including Andreessen Horowitz, before being acquired by Nike during the peak of the NFT boom.

Despite its initial success, RTFKT's closure marks a shift in the NFT space as the market has struggled to maintain the same level of enthusiasm that drove its explosive growth in 2021. Nike has confirmed that while RTFKT is winding down, the project will release one final NFT collection before it shuts its doors. The news of RTFKT’s closure has left many in the NFT community questioning the long-term viability of NFT projects associated with large brands.

Yuga Labs Expands with Tokenproof Acquisition

In a more positive development for the NFT industry, Yuga Labs, the company behind the successful Bored Ape Yacht Club (BAYC), has acquired the tech team of Tokenproof, a Web3 tokenization service. The acquisition, announced on December 3, signals Yuga Labs’ ongoing commitment to expanding its research and development efforts in the NFT space.

Tokenproof, which specializes in verifying NFT ownership in the real world, will now work under Yuga Labs’ R&D division. Tokenproof founder Fonz O stated that the acquisition would enable the team to collaborate more closely with Yuga Labs, which they had already partnered with on several projects since 2022. Yuga Labs co-founder Greg Solano expressed excitement about the new collaboration, noting that the Tokenproof team had already tackled “thorny problems” related to NFT ownership and verification.

Conclusion

While the NFT market shows signs of recovery, with impressive sales figures in November, the space is also witnessing significant shifts, such as the closure of Nike-owned RTFKT and the acquisition of Tokenproof by Yuga Labs. As the industry continues to evolve, it is clear that the NFT space remains dynamic, with both challenges and opportunities ahead. The coming months will likely determine the trajectory of these projects and whether the broader NFT market can maintain its recent momentum.