Two big trends in 2020 were the rise in the valuation of cryptocurrencies and trading cards. Two of those trends merged together in a fast growing company called NBA Top Shot.
About NBA Top Shot: Dapper Labs, the company that launched CryptoKitties, a blockchain-based game using Ethereum (ETH) to purchase, breed and sell virtual cats, is the company behind NBA Top Shot through a partnership with the NBA, established in 2019.
The popularity of CryptoKitties is said to have stressed Ethereum due to its success, which led the Dapper Labs to create new blockchain Flow for NBA Top Shot.
NBA Top Shot is similar to traditional trading cards, offering packs for users to buy and a secondary market to buy and sell highlights. Packs range in price from $9 to $230.
Each NBA Top Shot is a non-fungible token, or a unique cryptocurrency. Each serial numbered Top Shot can have only one owner. The highlights purchased are added to a users’ secured highlight digital wallet.
Dapper Labs owns the secondary marketplace for transactions and gets a cut from all sales. The NBA also gets a cut on all secondary sales.
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High Growth: NBA Top Shot is the top-selling digital collectible, according to tracking site Crypto Slam. Since its founding, NBA Top Shot has $78.9 million in sales from 993,815 transactions.
The numbers tell a story, considering in 2020, NBA Top Shot had sales of $7 million, according to Action Network.
In the last four months, NBA Top Shot generated $11 million from packs alone, according to the Action Network.
Over the last 30 days, NBA Top Shot had sales of $71.7 million from 32,803 buyers and over 820,000 transactions.
NBA Top Shot has $19.4 million in sales over the last seven days, up 62% year-over-year. This figure comes from more than 220,000 transactions.
Glitches And Successes: A sale of 50,000 packs at $14 each was delayed twice this past Monday due to demand and the site crashing.
See also: What is a Non-Fungible Token (NFT)?
In January, NBA Top Shots of dunks from Ja Morant and LeBron James broke records with $35,000 and $47,500 paid for the highlights.
Earlier this month, an NBA Top Shot highlight featuring the first block of Zion Williamson’s NBA career was sold for $100,000, according to ESPN.
What’s Next: Dapper Labs has a deal in place with the NBA. Dapper Labs CEO Roham Gharegozlou told Action Network that other leagues are part of the growth plan.
The trading card market is worth an estimated $5 billion to $6 billion annually and Gharegozlou said NBA Top Shot can grow to $1 billion annually.
NBA players Garrett Temple and Andre Iguodala are both investors in Dapper Labs and the company is closing in on a $250 million funding round that would value the company at $2 billion according to ESPN.
The company is exploring launching classic moments. Just the thought of a digital Michael Jordan “The Shot” highlight has the company thinking huge revenue figures.
NBA
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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