- NFT creator royalty earnings have touched lows last seen two years ago according to a report by data analytics platform Nansen
- Nansen attributes the drop to NFT marketplaces offering collectors an option not to tip creators
- The report however observed that creators of high-end NFTs continue to pocket a huge chunk of paid royalties
NFT creator royalty earnings have touched lows last seen two years ago according to a report by data analytics platform Nansen. The analytics platform attributes the drop to NFT marketplaces like Blur and OpenSea offering collectors an option not to tip creators or setting a very low default royalty amount. Nansen however observed that creators of high-end NFTs like Bored Ape and Azuki continue to pocket a huge chunk of paid royalties.
From $76 Million to $3.8 Million
The report disclosed that royalty earnings dropped to 2-year lows last month when the highest one-week royalties reached roughly $3.8 million compared to April 2022 when creators pocketed about $76 million in seven days.
Speaking to Coindesk, Nansen’s analysts said that the popularity of optional royalties was ignited by NFT marketplaces competing to attract higher trading volumes. The competition saw the two leading marketplaces Blur and OpenSea, engage in supremacy battles that led to unethical behaviors such as Blur asking creators to block OpenSea for full royalties.
Nansen however revealed that royalty earnings started to shrink long before the recent Azuki Elementals saga and a plummeting floor price for Bored Apes.
The discussion around tipping creators gained momentum last year when Blur scrapped its trading fees to attract usage, but was later forced to honor royalties after an outcry from both collectors and creators. The discussion led top marketplaces like OpenSea and Magic Eden to launch on-chain royalties enforcement tools.
No Clear Path to Royalties
NFT marketplaces have been trending on a tightrope on whether to enforce compulsory or optional royalties. OpenSea, for example, bowed to pressure from creators and restored mandatory royalties.
With a drop in NFT creator royalty earnings and plummeting NFT trader numbers, creators are likely finding it hard to keep creating, especially in a bear market.
