Another way NFTs have been used is to capture memorable sports moments in form of short video clips. This doesn’t have a physical equivalent like other NFT types we talked about so far but the historical significance is priceless — makes sense while they are expensive. Some of these NFTs can feature sports moments from game-changing touchdowns to groundbreaking slam dunks.
Sports NFTs are a growing segment in the non-fungible tokens (NFT) market, enabling sports fans to collect digital trading cards, virtual memorabilia, and more. Sports-themed NFTs are one of the highest-grossing categories drawing attention from sports enthusiasts as well as tech junkies.
Sports NFTs are verifiably unique digital assets created on a blockchain to represent digital trading sports cards, sporting moments, digital memorabilia, and other types of sports items.
The issuance of sports NFTs provides an opportunity for athletes, clubs, and sports brands with a new monetization avenue while enabling fans to connect with their favorite clubs and athletes in a new way.
For example, owning limited edition virtual memorabilia of one’s favorite basketball team or a rare collectible card of a favorite baseball player is something that a lot of fans are willing to pay good money for. As a result, sports NFTs are often trading for thousands and thousands of dollars (or more), and the value of some of the rarest pieces has increased substantially since they were minted.
Dapper Labs’ NBA Top Shot is an NFT marketplace built in association with the National Basketball Association (NBA) and lists some of the most iconic basketball moments of all time. Every video clip featured here is also an NFT on Dapper’s own blockchain called Flow.
One of the most expensive NFTs ever sold in the sports category is the LeBron James Dunk Throwdowns (Series), which cost about US$380,000.
In the Formula 1 segment, NFTs like F1 Delta Time: 1-1-1 and F1 Delta Time: 70th Anniversary Edition; World Champion Ring are some of the most expensive ones in the racing sports.
Sports NFTs have made headlines because of the celebrity allure of the athletes’ names attached to high-profile drops.
Moreover, leading NFT companies, most notably Dapper Labs and Sorare, have managed to secure licensing deals with some of the biggest sports leagues in the world, enabling sports fans to get involved with their favorite clubs and athletes in an entirely new manner in the digital realm.
Sports NFTs have also enabled knowledgeable collectors to make considerable returns by buying the right collectible cards and virtual memorabilia and selling it at the height of the NFT boom in 2021.
While the NFT market may not be as hot as it was last year, pushed down by the significant drop in the crypto markets, the number of sports fans entering the NFT space could help to push the value of sports NFTs higher in the years to come.
However, the NFT market is extremely volatile and collecting sports NFTs can result in a total loss of funds, for example, if an NFT brand loses a licensing agreement (like F1 Delta Time earlier this year). Therefore, anyone planning to buy sports NFTs as an investment should never invest more than they can afford to lose because there is a very real chance of losing money in the NFT market.
Having said that, if you are a fan and are willing to pay “any price” to get your hands on the latest collectible of your favorite club or athlete, then sports NFTs may be right up your alley.