Tariff volatility drove the NFL and NBA to increase their digital merchandise, with the Flow Chain TVL reaching a record high of $44.4 million
According to Cointelegraph, Ridhima Kahn, vice president of Dapper Labs, pointed out that tariff uncertainty is accelerating the shift of brands such as the NBA, NFL and Disney to blockchain digital goods strategies. According to the data, Flow's on-chain NFT sales increased by 7% in the quarter, with NFL All Day and NBA Top Shot recording $2.5 million and $5.6 million in sales, respectively, and a record total on-chain value locked (TVL) of $44.4 million.
According to Kahn, fluctuating costs of physical goods are driving brands to explore digital collectibles as a new avenue for fan engagement. Tradable highlights such as "LeBron Dunk" have been launched in the NBA app, and NFL All Day has launched game highlights commemorative NFTs, which can unlock exclusive offline experiences by tying digital memorabilia to real-world rights. With 60% of the world's fan engagement time moving online, digital goods are ungeo-unrestricted and allow brands to reach a wider audience.
At the technical level, the optimization of the blockchain deposit and withdrawal channel lowers the threshold for user participation. With the recent integration of Flow Chain with OpenSea, NBA Top Shot has been among the top five most popular collectibles on the platform for four consecutive weeks. Dapper Labs optimizes product design through A/B testing and VIP user interviews, such as collecting collector feedback during NBA midseason games, to quickly iterate on digital experiences.
Kahn emphasized that digital goods are not a replacement for physical goods, but rather an expansion of revenue streams. IP-driven digital collections have the advantages of customizability, permanent retention and instant global circulation, such as the ability to carry precious collections on mobile phones and cross-border transactions. In the future, brands will continue to explore the linkage between digital space and physical rights, such as exchanging on-chain behaviors for offline benefits, and building a two-way value system.
Regulatory clarity is increasing brand confidence in blockchain technology. With the improvement of digital asset frameworks in many countries and the acceleration of the deployment of compliant digital commodity markets by mainstream institutions, a new generation of investment protocols such as KittyPunch has emerged in the Flow Chain ecosystem, promoting the extension of use cases to scenarios such as trading and governance.