In the first three months of 2023, trading in the NFT space has grown significantly after almost a year of baseline growth. According to a report by DappRadar, trade volume levels in the Metaverse have reached new heights amounting to 147,000 transactions worth more than US$311 million. The giants of the digital space such as Yuga Labs, Blur and Decentraland were accredited to spurring activities within the different virtual worlds and other goods.
In particular, Yuga Labs’ Otherside Metaverse was the talk of the town as its NFTs recorded a transaction volume of US$222 million for the first quarter of 2023 or a 237 per cent jump from the preceding quarter. Furthermore, Yuga Labs announced a “Second Trip” to the Otherside in the coming months, creating even more excitement for the Otherdeed NFTs. The highest transaction during this quarter was 186 ETH, approximately US$2.85 million.
As more research and investments are made into the Web3 space, the potentiality of this market cannot be ignored, and it is perhaps time for brands to strengthen their ties to the digital space. One such company is luxury fashion brand Gucci, which has announced a multi-year partnership with Yuga Labs, the creator of the widely popular NFTs like Bored Ape Yacht Club, Cryptopunks, Mebits and Narrative Project 10KTF.
According to the press release about the partnership, this enhanced cooperation will improve engagement between the communities of the respective company “by exploring the intersection between fashion and entertainment in the Metaverse”.
Gucci is not a stranger to the digital space as it has explored the virtual worlds over the past two years and taken the lead in creating an online universe for its fans. For example, it is one of the first luxury brands to host a Metaverse experience in The Sandbox, like the launch of Gucci Vault. Besides that, Gucci also announced their first NFT project — SuperGucci NFTs, where Gucci’s signature patterns adorn the animated characters from SUPERPLASTIC. The project was sold for over US$20 million.
The brand’s latest foray into NFT is a partnership with 10KTF, whose parent company is Yuga Labs. This project involves a virtual world featuring a fictional character, Wagmi-san dressed in Gucci apparel. Its other involvement in the NFT world includes “Guccifying” the famous Bored Ape Yacht Club and its associated family of characters like World of Women, Cool Cats and The Wolf Game. Not everyone gets to own Gucci-themed NFTs as these are exclusively released only for selected participants, which adds to the allure of being part of a special group.
“We are excited to unveil this multifaceted partnership with Yuga Labs, a leading and creative developer of Web3 technology,” said Robert Tryfus, Gucci Senior Executive Vice President, Corporate and Brand Strategy and Chief Executive of Gucci Vault & Metaverse Ventures, in a statement. “This will give us an active role in the continuing narrative of The Otherside and 10KTF, which manifests itself in many forms.”
“We look forward to showing how this partnership extends to endless opportunities among others,” Michael Figg, the chief creative officer of Yuga Labs, said in a release.
While the broader crypto market is still undergoing a “crypto winter” and its associated assets have suffered from sluggish sales, many pundits are not too fixated on the losses. Just like any business cycle, there will be peaks and falls, and these low points are where the markets will consolidate and correct themselves. Adding on to the nascent nature of this new asset class, the correction will help to cool down the heating market and prepare it for a better future. By firming its ties to the virtual world, Gucci will help set the stage for robust growth and perhaps help pull itself out of the stagnant growth that has troubled the brand for a long time.
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