STATE OF

FASHION
NFTs
2022

Presented by
The Naked Collector
The Promise of Web3
Fashion

The Web3 Fashion ecosystem has

grown a lot in 2022. From speculative
promises in 2021, 2022 has seen
actual implementations of
digital/physical merging, composable
digital avatars and creator/community
tools that will enable customization of
self-expression.
The promise of Web3 remains the 1)
composability of assets (e.g.
ReadyPlayerMe), 2) real ownership
(i.e. NFT tech) and 3) new interaction
mediums (e.g. digital, digitally-
enabled physical and new social
graphs enabled by POAPs).

*All data gathered by Naked Collector, with the exception of "Web2 Brand Performance in Web3", which used 1
Noah Levine's data as input.The insights are primarily based on 47 of the most traded Fashion NFT collections
on the Ethereum blockchain since 01.01.2022
DATA INSIGHTS:
FASHION
NFTs IN
2022

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Insight #1:

Fashion NFT Volume Low – We’re

Still Early

The total Fashion NFT volume in 2022 was ~ $1.2B. This is a

mere 0.14% of the 0.88 trillion traditional fashion market and
$179M less than the $1.42B volume of the Bored Ape Yacht
Collection in 2022.

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Insight #2:

Fashion NFT Volume Correlates

With the General Market

Fashion NFT volume visualized against, Bored Ape

Yacht Club volume (i.e. one of the leading NFT
collections and a macro indicator).

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Insight #3:

Secondary Volume Trumps Primary

Volume

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Insight #4:

Secondary Markets Are More

Important Revenue Generators
Than Mint Revenues

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Insight #5:

RTFKT (Nike) Is the Main Driver of

Fashion NFT Volume

The concentration of the market structure indicates that we’re still early in
the Fashion NFT space. If we include all of the RTFKT (Nike) collections,
they roughly account for 72.5% of the 2022 Fashion NFT volume. Its PFP
(picture for proof aka profile picture) component Clone X accounts for
almost 50%.

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Insight #6:

PFPs Are Still the Clearest NFT

Product-Market Fit

The 68% PFP market share indicates how strong the PFP-Web3 market fit
is even in the context of Fashion NFTs.

Profile pictures in and of themselves could be considered a fashion

statement, wardrobe changes (e.g. 10KTF x Gucci and Azuki) highlight
this.

These wardrobe changes have yet to attract large interest among the
Web3 community but could do so with newer entrants to the space.

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Insight #7:

"Phygitals" Are Still a Small

Percentage of the Total Fashion
NFT Volume

Total Secondary Volume (Phygitals) in 2022:

~$15M

The phygital (or digitally linked physicals) market is dominated by RTFKT (~76% share of
the market). It also has the most phygital collections so far (7). In fact, their Clone X SZN 1
made up 40% of all phygital secondary sales.
Note: There is usually a claim window after which the NFTs become essentially worthless.
Hence the sporadic volume graphs.

Top 5: Projects by Market Share:

RTFKT Clone X Forging SZN 1 (40%)
RTFKT x RIMOWA (20%)
RTFKT Nike AR Hoodie Pre-Forged (11.4%)
Azuki Twin Tigers (7.36%)
Cult & Rain Genesis Collection (6.7%)

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Insight #8:

RTFKT Dominates the Royalty

Category

RTFKT leads the royalty category as well. While dominant, it’s not as
dominant as in the secondary volume category.

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Insight #9:

Ethereum Fashion NFTs Lead the

Market (By a Lot)

244

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Insight #10:

Nike Leads Value to Holders,

Lacoste Attracts Most First-Time
Minters

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Insight #11:

Solana and Flow Have the Largest

Fashion NFT Collections After
Ethereum

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DEVELOPMENTS
IN WEB3
TECHNOLOGY

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NFC/NFT Linked Physical
Merchandise

The three main competitors in the space are:

IYK. A “pull-technology” NFC chip that ensures the chip travels with the physical object. The
holder of the physical can always pull the NFT into their wallet by scanning the NFC tag. The
NFT cannot be traded on its own. Used by 9dcc, BanklessDAO, PCC.
KONG HaLo. Unlike regular NFC chip, these can sign transactions on the Ethereum
network. Used by projects like Azuki, Metafactory and Rags.
RTFKT WM Chip. NFC chip connects to your Web3 wallet. Links specified NFT to physical.
In 2023, holders will be able to unlink NFT from the physical item.

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Physical Item Vaulting
Enables Digital/Physical
Connection

The infrastructure that enables the Stock X model of Web3.

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Secure Verification of
Assets

Source: Tokenproof:

Tokenproof allows verification of NFT ownership without carrying around

your Web3 wallet. This solves some of the major security concerns related
to Web3 wallets.

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Generative Fashion
Creates New
Production Models

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NFT Tools Make Web3
Project Management
Easier

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 TRENDS TO
LOOK OUT FOR
IN 2023

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Wear-to-Earn (W2E)

For many, wear-to-earn is the ultimate use case for fashion NFTs. While it has
been discussed for a while, implementations of W2E specifically haven’t yet
taken off in a major way.

Solana’s STEPN app was a glimpse into the possibilities of the wear-to-earn
model, with ~95,000 cumulative users.

While STEPN technically used a move-to-earn (M2E) mechanism instead of

wear-to-earn, the app uses virtual shoes as the medium for earning.

This is also the mechanism RTFKT introduced in its newest Cryptokicks iRL
shoes.

Source: RTFKT

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Passive Income From
NFTs May Become a
Reality

Protocols like reNFT (rental) and NFTfi (lending) are looking to create
financial structures and liquidity around NFTs. These unlock the latent
value within NFTs and create a new utility layer for NFTs.

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Newfound ETH
Sustainability

One of the Cinderella stories of 2022 was Polygon’s partnerships.

It partnered with some of the most notable Web2 companies like Nike, Disney and
Starbucks.
Polygon essentially offered two benefits over ETH, sustainability and cheaper
transactions. Now that the Ethereum blockchain has cut its energy use by 99%, it
will be interesting to see whether brands will continue to partner with L2s in similar
numbers as in 2022.

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Emphasis on Co-
Creation as New Web3
Fashion Platforms Are
Born

LUKSO blockchain’s long road to mainnet will soon be

achieved, introducing new concepts such as Universal
Profiles that make smart contract metadata more
dynamic.

The recently launched RSTLSS project enables users to

create composable wearables for Web3 gaming, social
and IRL. Integrations include ReadyPlayerMe, Mona VR
Chat, Somnium Space, Spatial, Instagram and Snapchat.

ReadyPlayerMe continues its partnership and has

made it easy for users to build composable
avatars in minutes. Integrations include RTFKT,
Spatial, Somnium Space and Mona.

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AR/VR and AI Will
Redefine the Fashion
Stack

In-game skins have made us realize that fashion is

shifting increasingly toward visual aesthetics and
communication value.
Instead of physical craftsmanship, AR/VR craftsmanship
will create the haute couture of the digital realm.
This is also where AI has the most potential to impact.
From creating assets directly via scripts to text-to-3D
capabilities, AI will democratize the digital asset
creation process.

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Summmary

1
Fashion NFT volumes are still minimal compared to
traditional fashion volumes. For one, this indicates how
early we still are.

2
RTFKT (Nike) still clearly leading the Fashion NFT market in
part due to a first-mover advantage.

3
New technologies (e.g. W2E, M2E, composability,
financialization) will not only expand NFT capabilities but
also introduce new possibilities to traditional fashion.

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About
The Naked Collector

Top source of Web3 Fashion research/data since 2021.

5+ years of experience in crypto markets.

Part of 100+ NFT communities.

Newsletter followed by the vanguards of the Web3 Fashion/Digital Fashion

space.

Twitter:
@NakedCollector
LinkedIn:
linkedin.com/company/the-naked-collector
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thenakedcollector.substack.com
Learn More At:
nakedcollector.xyz

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