Last week I published a deep dive report on fashion NFTs for @proof_xyz

Here are the main takeaways, alpha sources, potential breakout projects, and movers and shakers within the ecosystem.

(🧵👇: 1/ 13)

TL;DR

A $40B digital wearables industry is booming in the gaming industry. NFTs are a natural market fit.

8 of the top 10 trad fashion apparel brands are working w/ NFTs

Social media NFT compatibility and advancements in AR/VR filters are two of the ecosystem's biggest unlocks

Absolute must-follows in the eco:

@danidoesnotxist
@megan_kaspar
@gmoneyNFT
@iancr
@cwet3k
@RED___DAO
@maghanmcd
@nlevine19
@k3rrymurphy
@nic__carter
@davidcash888

The space is divided into three main verticals:

Un-Real Life (URL)- Digital wearables on a digitally native being/PFPs

On Real Life (ORL)- Digital wearables on real-life beings. Digitally rendered or AR/VR filter

In Real Life (IRL)- Networked product, IRL clothing w/ NFC chip

URL fashion will be integral in curating a digital identity. While early, URL NFTs are the most prominent use-case in fashion NFTs.

'Are PFPs fashion or are PFPs a vehicle for fashion'
-@danidoesnotxist

Customizable, adaptive, and dynamic PFPs will drive mainstream adoption

@10KTFshop

The digital accessory shop uses storytelling to bring holders into their ecosystem

A leader in the space with a stacked team (@beeple, @guyoseary, @wenewlabs) the complex project will eventually have a more user-friendly structure

Major partnerships w/ BAYC & Gucci

To this point, URL fashion has yet to realize its full potential

@y00tsNFT / @frankdegods announced an interesting URL fashion mechanic. Having crypto-native artists make fashion for y00ts that holders could exchange for stakable 'y' token.

A lot of potential in this vertical

ORL fashion has massive potential in mainstream adoption and the 1/1 NFT industry.

With social media NFT compatibility in the works, our filter-crazed culture will naturally embrace ownable (NFTs) filter fashion.

Projects to watch:
@tribute_brand
@AnybodiesNFT
@thefabricant

What could ORL fashion look like?

AI experimenter @karenxcheng put this video together last month:

IRL fashion is very early but a natural fit for luxury goods

Projects to watch

@9dccxyz by @gmoneyNFT

Leveraging crypto OG-ness and IRL status-signaling, 9dcc is a brand for crypto-natives

@dolcegabbana x @UNXD_NFT

Their 9-piece genesis collab raised over $5.7m at auction

Stand out project

@RTFKT

Initially bridging the gap between gaming skins and sneakerhead culture the early innovator has grown into a powerhouse project

W/ trad brand backing (Nike) RTFKT plays in all 3 fashion verticals

Notable collabs with SR artist @fewocious & @takashipom

The hurdles?

Fragmented marketplace volume and lacking tech are currently handcuffing the ecosystem.

Also, how will we display fashion NFTs?

Our space is dominated by text-based queues (twitter, discord) and anonymity, a platform to flex visual fashion NFTs will be essential

The potential of web3 fashion is massive.

Dynamic and customizable PFPs, traditional brands launching successful projects, social media compatibility

The writing is on the wall, but it is early days. The ecosystem needs time to mature.

Follow for more updates on the sector!