The paparazzi was out in full force for the annual Met Gala in New York City last weekend, but the biggest runway is the Metaverse. Bored Ape Yacht Club, a project popular with fashionistas like Paris Hilton, recently sold $300 million of virtual real estate, while established brands like Gucci and Adidas have been selling non-fungible tokens, or NFTs, faster than they can be minted. The outsized demand for branded digital assets has created a virtuous cycle, particularly in the fashion world.
As Meghan McDowell wrote for Vogue Business last month, “Assessing the relative and ongoing value of fashion NFTs is not as easy as tracking the resale value of physical luxury goods, in which a high price reflects market value. Most of the brands tracked by Vogue Business have seen resale values at least double in value including Louis Vuitton, Gucci, Burberry and Adidas.”