Reddit NFTs Explained
It’s no secret that the NFT markets have cooled off significantly compared to last year. In early September, various crypto news outlets reported that transaction volume on OpenSea, the world’s largest NFT marketplace, had plummeted a staggering 99%. Earlier than that, the New Yorker published a piece titled “The Death of NFTs.”
It looks like the death of the NFT may have been greatly exaggerated, and Reddit may play a significant role in the resurgence of non-fungible tokens. Specifically, Reddit’s chief product offer Pali Bhat revealed recently that over 3 million Redditors had created crypto wallets using Reddit’s Vault blockchain wallet.
This is more than encouraging for crypto enthusiasts hoping for mass adoption. But how did it all happen?
What are Reddit NFTs?
For those who don’t know, Reddit remains one of the most popular websites in the United States. Boasting over 50 million daily active users, Reddit is somewhere between a social news website, a content aggregator, and a massive interconnected maze of subforums often described as “the first page of the Internet.”
Reddit didn’t suddenly hop on the NFT train in the past week or month. In July, Reddit decided to launch an NFT marketplace, allowing users to purchase blockchain-based profile pictures thanks to a partnership with Polygon. The Collectible Avatars project also features unique benefits on the Reddit platform.
In 2021, the platform unveiled CryptoSnoo, an NFT collection. This NFT collection is based on “Snoo,” Reddit’s logo. Reddit users could also use the platform’s Avatar Builder to customize their “Snoo.” While Reddit might be a Web2 social platform, it’s clear that it will drive Web3 adoption and NFT adoption in the future.
Can Reddit Help Drive Mass Adoption For NFTs?
Reddit’s Polygon-based avatars are now scorching hot, with secondary sales topping $1.8 million today alone. This is even more impressive considering that it’s a 799% increase from yesterday, suggesting that Reddit’s NFT collection is currently the hottest NFT collection on the planet.
Collectible Avatars was announced back in July. Alexis Ohanian, co-founder of Reddit, is also a well-known Web3 advocate. Last year, Ohanian announced a $100 million investment fund for Web3 social networks with his venture firm, 776 Management, in partnership with Solana Ventures. Earlier this year, 776 Management raised $500 million across two funds and clarified that most of this money would go to crypto startups.
What do Reddit NFTs mean for the future?
Ultimately, we’re a far cry from 2021, when billions of dollars flowed into the NFT markets and marketplaces. While Reddit has not single-handedly revived NFTs, it’s a very encouraging sign when you think about the fact that gaming companies worth billions of dollars have recently distanced themselves from non-fungible tokens due to public backlash.
The vast majority of Reddit's three million crypto wallets were created in the past two months. This indicates a massive interest in Reddit profile picture avatars and could help drive NFT adoption over the next several months or even years. Reddit will also greatly benefit, considering that it not only has its own NFT collection but its own Vault crypto wallet.
The platform also clearly did its homework before launching Collectible Avatars. Reddit previously released a report called the ABC of NFTs, revealing that 70% of its users were open to buying an NFT from their favorite brand. The fact that they hired independent artists - many of which had proved their talent on Reddit itself - was a smart move. Other platforms like Discord and Entre have also integrated NFTs, as well.
They also made these Reddit NFTs available for purchase through fiat currency and crypto. Also, Collectible Avatars offers some IP benefits to incentivize those who want more than a cool new Reddit profile picture. Don’t be surprised if more Web2 platforms take note and decide to release their own NFT collections!
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