Sorare's authorized NFT sales for fantasy football clubs surged into the top three

Written by: Jasmine Hive Tech

Recently, the NFT sales leaderboard has seen impressive sales from the football card game Sorare, particularly in terms of sales volume and transaction frequency.

On July 20, the NFT collectibles data site Cryptoslam reported that Sorare's series of NFTs ranked second with a sales volume of $1.4019 million, only behind BAYC (Bored Ape Yacht Club) at $1.9387 million. Sorare also had 6,210 buyers and 16,976 transactions within 24 hours. In contrast, BAYC and CryptoPunk, two NFT series that have long dominated the top two spots in NFT sales, had buyer and transaction numbers that did not exceed double digits.

On July 4, Sorare briefly surpassed these two leading series in sales volume over a 7-day period, ranking first. The last NFT series that maintained high sales and activity was NBA Top Shot, an NFT collection centered around NBA player cards.

Sorare's rise in the rankings once again demonstrates the potential of "sports + NFT."

Sorare Refreshes NFT Sales Rankings with Activity

The Ethereum network is the primary carrier for NFTs. Since the inception of this fungible token in October 2015 on the network, its total sales have reached $28.73 billion, peaking at $4.05 billion in monthly sales in January 2022.

However, entering 2022, NFT sales began to shrink alongside the downturn in the cryptocurrency market, hitting a new low in June with sales of only $722 million, a 73% drop from May.

The second-quarter NFT report from blockchain data service Nansen tracked six major NFT markets based on Ethereum, showing that in June, the weekly trading volume for NFTs was only 600,000 ETH, compared to approximately 1.3 million ETH in May.

While overall NFT sales on Ethereum were declining, attention was also focused on blue-chip NFTs like BAYC and CryptoPunk, which were also experiencing a drop in sales but mostly remained in the top two spots. However, in July, the player card NFT series within the blockchain gaming platform Sorare repeatedly entered the top three of this leaderboard.

On July 20, NFT data site Cryptoslam reported that Sorare's series of NFTs ranked second in 24-hour sales volume at $1.4019 million, just behind BAYC's $1.9387 million. Otherdeed, a metaverse land NFT launched by BAYC's parent company Yuga Labs, ranked third with $1.1588 million in sales, while CryptoPunk fell to fourth.

When considering monthly sales volume, Sorare's NFT sales ranked fourth at $26.5356 million, and on July 4, the NFT series' sales over a 7-day period briefly reached first place.

Compared to sales volume metrics, Sorare's buyer and transaction numbers are even more striking. While BAYC and CryptoPunk's daily buyer and transaction numbers remained in double digits, Sorare's figures were 6,210 and 16,976, respectively, showcasing remarkable user activity and transaction frequency within the entire NFT trading market.

Sorare's NFT system is built on the Ethereum blockchain. It is a sports-themed NFT card gaming platform focusing on football and baseball, showcasing athletes from real clubs or teams in the form of player cards. Users act as "club managers," managing player cards to participate in competitions set by the platform, with winners receiving NFT cards or ETH as rewards.

Compared to the collectible nature of NBA Top Shot player cards, Sorare has a stronger gaming aspect. Player NFT cards are categorized into four rarity levels: "limited," "rare," "super rare," and "unique." However, to achieve rankings in the game's season, players need more than just card rarity; they must also continuously update the card's power based on the player's real-world performance and strategically allocate players for competitions.

With real-time competitions available and relatively low prices for participating Sorare player card NFTs, user activity and transaction frequency for this NFT series have been steadily increasing.

The Value of Sorare Player Cards is Related to Player Performance

Taking the "limited" level player cards from the Sorare NFT secondary market as an example, the player card of José Mari from La Liga team Cádiz is priced at only $0.79, with a corresponding experience value of 77; the player card of Jeong Jae-yong from the K League's Suwon club is priced at $4.41, with an experience value of 198; while the card of Dutch player Ruud Gullit, who has an experience value of 261 and has won the FIFA World Player of the Year award, is valued at $100.87.

A player's experience value is directly related to their actual performance on the field, indicating that the value of Sorare's NFT player cards is not only based on scarcity but also on factors such as the athlete's performance and popularity.

Different levels of cards can participate in various competitions set by the Sorare platform. Participating players can select five cards according to the rules, and those with higher scores will receive NFT cards or ETH as rewards.

Sorare Attracts Collectors, Players, and Fans

Sorare's rise in the rankings once again highlights the potential of "sports + NFT." The last NFT series that maintained high sales and activity was NBA Top Shot, an NFT collection centered around NBA player cards.

Compared to NBA Top Shot, Sorare's team has been deeply involved in blockchain gaming and NFTs for a longer time.

Headquartered in France, Sorare started with just three people. Co-founder and CEO Nicolas Julia is a serial entrepreneur in the blockchain industry, who began planning this blockchain sports game in 2018, launching Sorare in December of that year. From the beginning, the Sorare team pursued a business model of obtaining licenses from professional clubs, laying the foundation for the game's development.

Not long after its inception, Sorare signed its first contract with the Belgian Football League, which has 24 professional clubs and 600 football players. The team set a goal to sign contracts with clubs from major European leagues such as the Premier League and Ligue 1 to obtain player image rights and other licenses for creating NFT player cards.

At that time, NFTs were still a niche product in the cryptocurrency space, with CryptoKitties, which clogged the Ethereum network, being the first exposure many had to NFTs. Players entering CryptoKitties were still part of the cryptocurrency audience. Sorare aimed to bring fans into the world of cryptocurrency by combining NFTs with football.

By March 2019, Spanish football clubs Atlético Madrid and Valencia, as well as the German club Schalke 04, had signed licensing agreements with Sorare, bringing initial exposure from clubs in La Liga and the Bundesliga.

Currently, Sorare has obtained licenses from 280 football clubs, covering well-known clubs in football leagues that fans pay attention to, including the Premier League, La Liga, Bundesliga, Serie A, and the Champions League, such as Liverpool, Real Madrid, Barcelona, Bayern Munich, and Juventus.

Sorare Expands Player Cards from Football to Baseball

The fan base is broader compared to cryptocurrency users, but for a blockchain gaming platform, how to help fans without blockchain knowledge understand NFTs? This is a user threshold issue.

To address this, Sorare adopted a Web2-style registration method, allowing users to create game accounts with just an email and a password, and choose whether to link a cryptocurrency wallet. In the game, users assume the role of a virtual club manager. Upon registration, users receive 10 free common player cards, which appear as images and represent the manager's club in basic competitions. Users have the opportunity to earn NFT player card rewards based on their performance in these competitions, which will expand their club roster for higher-level competitions.

It can be said that NFT rewards guide ordinary cardholders into the world of blockchain gaming. Some users gradually began to understand the use of cryptocurrency wallets, the player card trading market, and other blockchain gaming tools like asset managers as NFT rewards emerged.

To attract interested users, Sorare not only relies on referrals for traffic but has also started collaborating with well-known game manufacturers to expand its player market.

In 2021, Sorare partnered with Ubisoft's Strategic Innovation Lab to develop its card battle game into an off-chain game, launching a beta version called One Shot League, and offering limited edition NFT player card rewards to daily winners in this version. This reward can be used in competitions on both platforms. The press release from both parties used the PR term "exploring interoperability," but this collaboration will undoubtedly bring new traffic to Sorare from traditional gaming.

Entering 2022, Sorare expanded its focus on football while also reaching into the baseball market. In May of this year, the platform signed a cooperation agreement with Major League Baseball (MLB) and has already obtained official authorization from 30 MLB clubs, planning to replicate its NFT operational experience from the football market.

Although Sorare has more gaming attributes than NBA Top Shot, the strategic nature of card games means that players do not experience a strong sense of competition, making the gaming experience somewhat static.

The platform's founder, Nicolas, seems to have noticed this and has begun to intentionally layout an ecosystem related to competitive sports games. In April of this year, he personally participated in the seed round investment for the Web3 football competition game Goals, which not only incorporates a digital asset economic system but, from the currently released demo videos, appears to be a truly operational competitive sports game. Currently, Goals is still in development and has not officially launched.

Public data shows that Sorare has 1.8 million registered users across 184 countries. While this still lags behind traditional gaming, it has already begun to take shape in the blockchain gaming sector. From its expansion into the baseball market, this platform may accommodate more sports in the future.

(Disclaimer: Readers are advised to strictly comply with local laws and regulations; this article does not constitute any investment advice.)