The Rise of Gen Z and the Sneaker Craze - Shoes on the Blockchain
The global sneaker industry is set to grow to a value of 120$ billion by 2026 from a current market capitalization of $79 billion. The shoe business is an enormous opportunity given its rapid expansion across cultures and continents. However, with more companies targeting the already flooding sneaker market, the sneaker giants such as Nike and Adidas are eyeing the tokenization of sneakers as the next play, which will create a new digital market for sneakers altogether. For example, when a customer purchases a genuine pair of shoes, a digital version of the shoe may be created, connected to the customer, and given a cryptographic token, the digital shoe and cryptographic token being a crypto sneaker as a whole.
Last year, collectors and sneakers enthusiasts bought and resold $6 billion of sneakers, including limited-edition pairs on the secondary market. Nike’s acquisition of RTFKT studio is a tell that the next step for the sneaker industry is to go into digital shoes, NFTs and accessories using blockchain technology. With companies like Sneakmart launching products such as Metakicks, which allows users to receive tokenized sneakers generated at random, the possibilities of using sneakers with blockchain technology is endless. NFT mystery boxes contain a random NFT from a collection. Buying a mystery box gives users the chance to receive a special or rare sneaker product at a relatively low price. Users want to show off their digital kicks, which they have created as they do in the physical world or resell it for a profit, exemplifying the new age of transformation. With celebrities endorsement such as soccer pairs created by former international soccer star Didier Drogba, the possibilities for collaboration are endless.
The Rise of Sneakers NFTs
Nike sees the acquisition of RTFKT as a way to extend its digital presence and its capabilities. Nike isn’t the only corporation jumping on the NFT bandwagon. Adidas reaped nearly $22 million from the sale of the digital tokens, sold for 0.2 ETH each.
A future where digital sneakers are an essential aspect of our identities is difficult to predict. With everyone from venture capital, private equity funds, banker, chipmakers to artists to fashion labels getting ready for the metaverse, it feels imminent—and businesses like Nike, Adidas, and others will be there to ensure our virtual feet aren’t bare. People ready to spend hundreds or even thousands of dollars on a pair of digital shoes may soon make this a new normal and multi-billion dollar industry.
It’s difficult to determine a future where digital sneakers will be a fundamental part of our identities. It seems inevitable with Nike, Adidas, RKFT, Sneakmart, Meta, fashion labels, and everyone else gearing up for the metaverse and its impact on our society.
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