As many of you may know, Reddit has launched its own collection of Non-Fungible Tokens (NFTs) recently. The hype around this collection was so huge that it sold out extremely fast, increasing demand in return. Although most people thought that the whole scheme was hype-based, Reddit currently has more active wallets than OpenSea – the biggest NFT marketplace out there. If that was not enough, Reddit’s NFT collection has a trading volume of $2.5 million. This shows a huge increase in trading volume when compared to the day before.
This increase in NFT sales in Reddit has had a positive effect on Polygon’s MATIC token. The smart-contract compatible token, MATIC, has experienced a sudden price increase of 13% in just four days. Since we are currently experiencing a bear cycle, such an increase is unusual and attracts attention.
Reddit NFTs
Reddit’s NFT collection was a huge success. First off, Reddit managed to accumulate more than 2.8 million wallets, with every single one of them holding at least one of Reddit’s NFT avatars. Until today, Reddit’s collections generated more than $6 million in trading volume through over 22,000 sales.
What makes Reddit NFTs unique is that they can be afforded by most people. Today, the floor prices of these collections range significantly, with the lowest FP being Ξ0.05 and the highest FP being Ξ1.73. Despite the success of Reddit NFTs, some crypto Twitter influencers are skeptical about them. One of them is @DanielitoG25 who claims that NFT Twitter is becoming exit liquidity for Redditors.
yeah i don’t buy the 3 million wallets thing, nft twitter getting so excited they became exit liquidity
— Daniel G 🍌 (@DanielitoG25) October 24, 2022
Nevertheless, the majority of crypto Twitter recognize the importance of Reddit NFTs, praising them for being one of the driving forces for NFT mass adoption. One of these people is @voltura.eth. According to Voltura, this is just the beginning of NFT adoption. She implies that millions of people still don’t know that they are interacting with NFTs, even though they are doing so daily.
NFTs will be mass adopted by hundreds of millions (e.g Reddit PFPs) of people who have no idea they are interacting with NFTs.
— voltura.eth (@BAYC2745) October 24, 2022
Reddit’s NFT Marketplace
According to DeFi Llama, the total value locked (TVL) of Polygon is $1.22 billion, putting it in the 6th spot. Reedit’s news NFT marketplace uses Polygon as a layer 2 solution to operate. Reddit’s NFT Marketplace made its debut earlier this year, on the 7th of July.
When Reddit’s NFT avatars dropped, they had a price between $9.99 and $99.99 per piece. Buying one NFT was not the only way you could get your hands on such an avatar. Reddit decided to airdrop some unique avatar NFTs to its most active users. Normally, the ones that got a free avatar are the first ones to liquidate their NFTs; thus, most Redditors who got a free airdrop are holding the floor price down.
Until today, the artists behind Reddit’s NFTs have earned over $100,000 in royalties. Although the royalties paid for each transaction on Reddit are not high, the number of sales increased the profit for the artists.
Polygon’s Recent Achievements
As for Polygon, this blockchain is currently dominating the space when it comes to market presence. Just recently, Nubank, a fintech servicing company operating in Latin America, informed the public that they will launch a blockchain based on Polygon’s infrastructure. Moreover, Robinhood, a major financial services company in the United States, recently launched a web3 wallet powered by Polygon’s technology.