Nike's RTFKT Shuts Down as NFT Market Sees Resurgence

Nike's digital studio RTFKT is shutting down by January 2025 but it's not all doom and gloom for NFTs.

The move comes as part of a broader restructuring under Nike's new CEO, Elliott Hill. RTFKT's Ethereum-based tokens will remain publicly accessible but the decision signals the end of Nike's foray into digital fashion.

“Since our inception, Rtfkt has been at the forefront of digital culture, pioneering the fusion of sneaker culture, gaming, digital fashion and Web3 Technology," RTFKT announced on X.

"Together, we've built something revolutionary: a community where traditional boundaries between physical and digital creativity dissolved, where artists and collectors redefined what the future could be. Today, we're announcing the plan to wind down RTFKT operations,”

The post highlighted a number of its successful projects including Clone X - a collaboration with renowned artist Takashi Murakami.

RTFKT plans to launch an updated website that will serve as a virtual archive, showcasing its most iconic designs and inspiring works. It also plans to release one final project, the MNLTH X featuring the BLADE DROP.

Nike acquired RTFKT in December 2021. CEO John Donahoe said at the time, “Our plan is to invest in the RTFKT brand, serve and grow their innovative and creative community and extend Nike’s digital footprint and capabilities.”

RTFKT's closure announcement comes less than one week after crypto exchange Kraken revealed it would be shutting down its NFT marketplace after almost two years since its launch.

“Clients have been informed of the changes and our team will support them as they move their NFTs to their Kraken Wallet or a self-custodial wallet of choice,” Kraken said.

The platform has stopped accepting new listings and will officially close by 27 February 2025 and is allowing users to withdraw their NFTs to external wallets until the closure date.

However, the NFT market seems to be making a resurgence. The sector's market cap has risen 17.3% over the week, reaching $8.8 billion, while daily trading jumped almost 48% in the past 24 hours.

Last month saw $562 million in sales too, which is the sectors' highest sales volume since May 2024, which recorded $600 million.

In particular, blue-chip NFT collections are performing well. CryptoPunks holds a floor price of 42.99 ETH, representing a nearly 5% increase in the past 24 hours and a remarkable 14% gain over the week. November saw CryptoPunks recording a trading volume of $49 million—a staggering 392% surge from October from only 388 transactions. With a 40% market share and a median trade value of $114,131, CryptoPunks continues to serve as a pillar of the NFT market.

The Bored Ape Yacht Club (BAYC) is also maintaining a 21.27 ETH floor price, posting an impressive 75.79% weekly gain. The project saw 1,486 ETH worth of trading volume in just the past 24 hours.

Meanwhile, Pudgy Penguins retained a 14.869 ETH floor price and 30% weekly appreciation and Azuki's floor price at 5.799 ETH showed growth with an 8.61% daily increase.

CryptoPunks, BAYC, and Pudgy Penguins account for 73% of all NFT market activity.

However, the overall NFT market is far from its peak. The CryptoSlam 500 NFT Index, which tracks 500 smart contracts across 11 major blockchains, highlights a 53.77% decline from its high of 2,494.74, now sitting at 1,135.04.