Reddit: The new aggressive NFT Bull
Reddit non-fungible tokens (NFT) have been the talk of the town in cryptocurrency markets this week after they generated a whopping $2.5 million in daily trade volume and inspired 3 million people to sign up for NFT wallets on the social media platform.
Independent artists create Reddit avatars minted as NFTs on the well-known Polygon blockchain. Such collectibles can be purchased through Reddit’s “ Vault “ cryptocurrency wallet. ‘Those Avatars (NFTs) use case is pretty basic; they give holders the ability to wear the avatar and display it as their profile picture.
Reddit’s strategy is more focused on its community, providing additional features to NFT owners and supporting creators. It is airdropping — or giving away — NFTs to the platform’s most active users.
The Polygon blockchain also plays an important role. It is compatible with Ethereum as a layer 2 blockchain (a separate blockchain that extends Ethereum and inherits Ethereum’s security guarantees) while allowing users to transact more quickly and for lower network fees, addressing two major obstacles to crypto adoption.
Reddit created the venture intending to empower artists to create NFT artwork and monetize their collectibles on NFT marketplaces. According to data, artists have earned more than $60,000 in royalties from secondary market sales of the NFTs so far.
On Sunday, the price of Polygon’s MATIC token increased significantly, coinciding with rising interest in Reddit NFTs. MATIC has risen 6% in the last 24 hours to a price of nearly $0.90.
What’s next
It’s nearly impossible that this is Reddit’s final attempt at Web3, with some claiming that the company is going all-in on creating a metaverse. The company has previously collaborated with Riot Games and is in talks with The Sandbox, though this is unsubstantiated.
Regardless, Reddit is now firmly in the Web3 space and has performed a near-miracle in converting its NFT-averse community into an avid collector base. There’s no telling what the platform could accomplish if it can maintain its expert-level strategy and make whatever metaverse initiatives it does have in the works easily accessible and scalable.
