Reddit Has Recorded More Than 5 Million NFT Avatars Minted on Polygon
Reddit's foray into non-fungible tokens (NFTs) and tokenized avatars is gaining interest amid plummeting NFT sales and a volatile crypto market. Thus, the Polygon-based project has reached a new milestone with over 5 million collectibles created so far.
Blockchain data gathered on a Dune dashboard shows that the Reddit Collectible Avatars NFT effort reached the 5 million milestone over the last 24 hours. Considering that the project has more than 4.25 million total unique wallets, they are also not disproportionately concentrated among high-value NFT collectors (or whales). 3.95 million of those wallets are holding at least a single Reddit NFT.
Popular online forum Reddit has revealed plans to introduce NFT avatars in July, partnering with Ethereum sidechain network Polygon to provide both free and premium avatar options. To date, the vast majority of the site's millions of distinct groups' top users and builders have received free avatars in exchange for their frequent usage (or subreddits).
In October, Reddit Chief Product Officer Pali Bhat revealed that users have created more than three million Polygon wallets to store their NFTs. The news triggered a spike in demand and trade for the collection's premium avatars, resulting in secondary market transactions for millions of dollars in a couple of days.
Reddit's premium NFTs created a short speculative bubble, but only approximately $700,000 worth of transactions have been made in the last month. To date, the Reddit NFTs have recorded secondary transactions of roughly $11.85 million, well below the highly traded NFT projects like the Bored Ape Yacht Club, which brought in $61.6 million in only 30 days of trading.
However, Reddit's NFT program continues to be a remarkable representation of how Web2 platforms may encourage the future broad adoption of Web3 technologies through NFT airdrops and prizes.
In fact, the number of NFTs issued by the initiative has just lately increased. On December 3, more than 250,000 Polygon NFTs were minted, reaching a new daily record and exceeding an August single-day peak.
Reddit is one of several big corporations and brands that are using Polygon, including Meta with its Instagram NFT minting venture, Starbucks with its recently announced Web3 rewards program, and Nike with its future digital fashion platform.