As tariff fluctuations increasingly affect businesses, executives such as Ridhima Kahn, vice president of business development at Dapper Labs, are recognizing the potential of blockchain technology to mitigate the challenges associated with physical goods. During an exclusive discussion with Cointelegraph, Kahn noted, “Many brands are reevaluating their revenue sources and fan engagement strategies.” She highlighted that franchises such as the NBA, NFL, and Disney have successfully leveraged digital collectibles over the years, prompting a surge of interest from various brands in digital assets as a method to connect with their audiences amid the uncertainties surrounding physical merchandise costs.
The drive for brands to explore digital merchandise is fueled by a desire to comprehend and enhance fan engagement. Dapper Labs’ Flow platform now features tradable highlights, such as memorable plays from NBA games, and commemorative NFTs associated with NFL highlights in NFL All Day. These digital offerings are demonstrating their ability to enrich in-person fan experiences, whether courtside or on the field, through blockchain technology. Kahn remarked, “As people increasingly spend time online or within digital environments, brands are motivated to discover where their fans are engaging and how to connect with them more effectively. This approach also allows for simultaneous engagement with a broader, global audience, rather than being confined to geographical limitations.”
### Digital Marketing Strategy for a Global Audience
Given the globalization of fan bases, the online marketplace provides a quicker and more accessible platform for digital goods, especially collectibles, in contrast to the physical goods market, which faces challenges due to unpredictable tariffs. Kahn stated, “Average NFT sales have risen by 7% from the previous quarter, with NFL All Day and NBA Top Shot generating $2.5 million and $5.6 million, respectively.” She also pointed out that the total value locked (TVL) on Flow has reached an all-time high of $44.4 million, driven by protocols like KittyPunch and other innovative markets that create new investment and trading opportunities, indicating a growing application of blockchain and cryptocurrency beyond NFTs.
The expansion of blockchain’s use cases is supported by advancements in onramping and offramping technologies, which have improved the user experience for newcomers to cryptocurrency and digital assets compared to just three years ago. Kahn emphasized, “Many blockchain companies are beginning to realize that their user base is limited if they do not enhance user experience. We see improved user experience as a key factor in driving adoption, and from a regulatory perspective, the positive developments for blockchain are particularly encouraging.”
### Growing Utility Amidst Regulatory Clarity
Although NBA Top Shot sales have declined since 2022, the start of the 2024-2025 season has rekindled interest among fans. As clearer regulations around blockchain are established, previously skeptical companies are starting to take blockchain technology more seriously, boosting confidence in this innovation, particularly among well-known brands. Kahn noted, “Collections backed by intellectual property are thriving.” Following Flow’s integration with OpenSea, NBA Top Shot achieved a spot among OpenSea’s top five trending collections for four consecutive weeks. The team conducts in-depth analyses of specific fan bases to gauge user behavior and rigorously tests their offerings to ensure that the final products align with fan expectations.
Kahn, along with Dapper Labs CEO Roham Gharegozlou, hosted a dinner for VIP collectors during the NBA in-season tournament to gather feedback on their preferences for the platform. This approach highlights a swift and effective form of real-life research and development (R&D), allowing for direct influence on digital products. “We take the insights gained back to our product team and incorporate them into our offerings to ensure we’re creating the best possible fan experience, independent of the technology used,” Kahn explained. “Our focus is on what fans desire, and we utilize blockchain technology to provide experiences that may not be available elsewhere, especially in the realm of physical merchandise.”
### The Future of Digital Collectibles
“The technological aspects of our products are often backgrounded, leaving behind a collectible that feels meaningful, shareable, and valuable,” Kahn stated. “Digital collectibles offer layers of engagement that physical goods simply cannot: they can be personalized, linked to real-world access, or used as long-term loyalty rewards. Additionally, they are easily remixed, lightweight, and globally accessible right from the start.” Despite the rise of digital goods, Kahn believes that the physical merchandise market will continue to play a significant role. “Brands are not abandoning physical products; rather, they are broadening their strategies to explore revenue streams that are less affected by the volatility of physical goods while enhancing fan interactions.”
Outside of the digital realm, sports and media enthusiasts often face limitations in purchasing physical merchandise based on their location and the portability of such items. Kahn envisions a future where mobile technology transforms fandom. “We appreciate the idea of carrying your most valued possessions on your phone, regardless of your location,” Kahn commented. “Trading physical items in a confined environment lacks the excitement of trading digitally with individuals worldwide.” Looking ahead, Kahn believes brands will continue to broaden their strategies to involve fans in digital spaces. “Consumers will also grow more open to adopting innovative engagement methods with brands in digital environments if they see tangible value. If we can consistently provide benefits for fans in the digital space that translate into advantages in the physical realm, this will be the key to success.”
