The inaugural Sports Report from DappRadar, the global dapp store, focuses on the growing usage of Web3 projects and apps in the world of sports and how they may significantly improve fan experiences.
Web3 is bringing together millions of people from all over the world via a variety of sponsorships, advertising arrangements, and immersive digital experiences focused on sports at a time when the whole world is paying attention to the FIFA World Cup 2022 in Qatar.
DappRadar’s Sports Report, in particular, draws attention to the rising acceptance of blockchain-based fantasy sports games like Sorare, in which players are charged with collecting NFT-based player cards housed on Starkware, an Ethereum L2 solution. Sorare has overtaken the famed Bored Ape Yacht Club as the second-largest NFT collection in terms of trade volume over the last 30 days. The greatest single transaction was Man City star Erling Haaland’s Unique Card, which went for a record-breaking 265 ETH, or 609,000 euros, in January. Following that, the card of Kylian Mbappe was sold for an astounding 416,000 euros, while the cards of Messi and Ronaldo were sold for more than 200,000 euros.
Not only card games are becoming more popular. Through the Socios.com platform, supporters can really utilize the blockchain to influence how their favorite teams are managed. To achieve this, they must buy fan tokens for certain teams like Barcelona, Lazio, and Paris Saint-Germain that were created on the Chiliz blockchain. Fans may then use these tokens to participate in regular voting processes to choose new uniform designs, jersey numbers, and inspirational quotes for their favorite athletes. Token holders also have the opportunity to win official goods, VIP seats to games, online meetings with players, and other prizes.
Given the advantages, it comes as no surprise that at the time of writing, more than 82 well-known teams have introduced fan tokens on Socios.
Teams would be wise to remember that poor outcomes may have an influence on the cost of their fan tokens. After Argentina’s shocking 2-1 loss to Saudi Arabia in its first World Cup game, the AFA token’s price fell by more than 25%.
Another new idea in the world of Web3 sports services is digital sports memorabilia. In the first quarter of 2021, for example, the NBA Top Shot NFT collection on Flow produced an astounding $450 million in trade volume or 36% of the whole NFT market. The collection, which was put together by Dapper Labs, is centered on short clips, or “moments,” that highlight some of the most thrilling moments from NBA games.
According to DappRadar, Flow’s collections are well-liked since they make using them easier for consumers who are unfamiliar with the blockchain. Every time a “moment” NFT is purchased, a wallet is instantly made for the purchaser. As a result, no technical knowledge is required of the user to participate. Despite the whole crypto sector being in a deep bear market, the NBA Top Shot collection has generated more than $200 million in revenues from 8.1 million sales this year. With over one million transactions this year, a competing NFL-focused collection called All Day generated over $35 million in sales. Additionally, Dapper Labs provides collections for La Liga and UFC events in Spain.
Last but not least, Web3 businesses are actively participating in the athletic world via aggressive marketing initiatives. According to DappRadar’s report, FIFA recently announced Algorand as a partner in blockchain technology and an official sponsor. FIFA+ Connect, the organization’s official NFT collection, is currently hosted by Algorand. Meanwhile, 80% of Formula 1’s racing teams have at least one cryptocurrency connection with companies like ByBit, OKX, and Tezos. Formula 1 also committed to a significant $100 million advertising agreement with the Crypto.com exchange and wallet ecosystem in the summer of 2021.
The NHL team Canadiens, PSG, and the Staples Center have signed identical multi-million dollar arrangements with Crypto.com, which has been particularly aggressive in its pursuit of sports alliances. A recent agreement between Crypto.com and Budweiser allows it to advertise inside the latter’s new digital Budverse universe.