Nike, Starbucks Exit NFT Market As Crypto-Natives Dig In

Nike, Starbucks and other major brands have exited the NFT market amid a steep decline in trading volumes, leaving some believing that the NFT industry is not done yet. Despite these exits, crypto-native firms are acquiring projects and developing new strategies, indicating ongoing interest and evolution in the NFT space.

Nike is currently facing a $5 million lawsuit from a group of buyers who purchased its branded non-fungible tokens (NFTs). This legal trouble comes on the heels of Nike’s closure of its RTFKT division in December 2024. The timing is particularly striking as NFT transaction volumes have plummeted to record lows, even amid a recent rally in the broader crypto market, raising questions about the sustainability of NFT projects from mainstream brands.

Nike isn’t alone; several other well-known companies, including Starbucks and DraftKings, have exited their NFT initiatives. Meanwhile, X2Y2, once a leading NFT marketplace, has opted to focus its efforts on the burgeoning field of crypto AI. These moves highlight a growing trend of major players pulling back from what was once seen as a revolutionary space.

The NFT market saw a staggering 24% drop in the first quarter of 2025, with trading volume shrinking to just $1.5 billion, down from even higher figures previously. According to DappRadar, this decline is significant when compared to the $5.7 billion recorded during the peak in January 2022, though it did show some improvement from the previous quarters. Still, the number of sales fell by 10%, indicating a potential drop in the average sale prices in this quickly deflating market.

A resurgence of optimism around the crypto sphere, particularly following the recent election of President Trump, wasn’t enough to stave off RTFKT’s demise. The division recently confirmed its winding down strategy via a post on Musk’s X platform, culminating in a final launch — the MNLTH X Blade Drop in collaboration with 3D-printing company Zellerfeld.

Adding further drama, images of CloneX NFTs from the RTFKT portfolio briefly vanished from OpenSea last week. This collection has been one of the biggest successes for RTFKT, with over 470,000 ETH in sales recorded on CoinMarketCap.

Once hailed as the top-performing mainstream brand in the NFT sector, earning $185 million in NFT sales by mid-2022, Nike’s fortunes have shifted dramatically. With the RTFKT closure, the recent lawsuit highlights discontent among buyers who assert that the shutdown diminished the value of their digital assets, as reported by Reuters.

Starbucks and Gamestop have also stepped away from the NFT arena, with Starbucks shuttering its NFT royalty program in March 2024 and Gamestop closing its marketplace shortly after. Gamestop cited ongoing regulatory challenges in the crypto world as a major factor behind its decisions.

In perhaps a surprising twist, while mainstream brands pull back, some crypto-native firms are digging in their heels. Recently, Solana-based platform Jupiter announced its acquisition of digital collectibles platform DRiP Haus. According to Jupiter’s Kash Dhanda, the company remains optimistic about the future of NFTs, dismissing claims that they are dying out.

The NFT landscape is not entirely bleak; projects such as Pudgy Penguins and Doodles are pushing into new territories like gaming. Pudgy Penguins is working on “Pudgy Party,” a game slated for iOS and Android in 2025, and has introduced the PENGU token, a portion of which is allocated to the community.

Doodles, in a similar fashion, is launching a token, DOOD, on Solana, aligning itself with an immersive storytelling approach. This new direction for brands shows a shift where they’re looking to evolve rather than abandon the NFT space, despite the current market challenges.

As the NFT market continues to adjust and evolve, the disarray among large corporations juxtaposed with the ambitions of crypto-native firms paints a complex picture of the future, for better or for worse.