Reddit is one of the most popular online community discussion platforms right now. However, most of the Reddit community is anti-NFT. Such a fact does not align with the recent news about the Reddit NFT marketplace outperforming a market giant. In October 2022, Reddit executive Pali Bhat announced that Reddit users had used the Reddit Vaults to create 3 million blockchain wallets.
Reddit introduced its blockchain-based collectible avatars, known as Reddit Avatars, in July 2022. Initially, Reddit Avatars had to face the brunt of initial skepticism from the community; the second-generation collection proved to be a hit. The collection of 40,000 NFTs sold out within 24 hours and are accessible through secondary marketplaces only. Let us uncover more details about the story behind the NFT marketplace battle between Reddit and OpenSea. What are the reasons behind such an impressive feat by Reddit?
Did Reddit Really Surpass OpenSea?
The Chief Product Officer of Reddit, Pali Bhat, revealed the reports about Reddit Vault wallet creation at a conference panel. She confirmed that Reddit had surpassed the OpenSea NFT marketplace in terms of the number of active wallets. According to the claims of the Reddit executive, more than 3 million Reddit users had created crypto wallets by using the Reddit Vault. In addition, Bhat also stated that almost 2.5 million of the new wallets created through Reddit Vault were intended for purchasing Reddit NFT avatars. On the other side of the comparison, OpenSea has only 2.3 million active wallets.
The impressive achievement by Reddit in surpassing the NFT OpenSea marketplace in terms of the number of active wallets is commendable. It serves as a promising indicator of the online community discussion platform transitioning into the web3 space. Most important of all, Reddit has achieved the feat within a small timeframe.
Reddit and NFTs
The comparison between Reddit and OpenSea in terms of the number of NFT wallets also draws the limelight towards the NFT initiative of Reddit. A recent Bloomberg report indicated that NFT trading volumes had plummeted by almost 97% since January 2022. On top of it, the prevailing crypto winter and lowering crypto asset prices have been affecting the prospects for NFT development. At this point in time, Reddit has proved how an NFT marketplace can still attract users when provided with utility. According to a report by Dune Analytics, the Reddit Avatars initiative had crossed beyond 5 million.
Reddit announced the plans for creating NFT avatars in July 2022, focused on use of Polygon for lowering transaction costs. Polygon has served as a reliable alternative for non-fungible token initiatives of other brands such as Nike, Starbucks and Meta. On a single day in December 2022, over 250,000 Reddit NFT avatars were minted on the Polygon network. On top of it, Reddit NFTs have also generated secondary sales worth $11.85 million.
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Reasons behind the Popularity of Reddit
The news of Reddit surpassing the OpenSea marketplace in terms of active wallets creates curiosity regarding the underlying reasons. Why would you buy NFT from a specific marketplace? The answer would point at the distinct features of the Reddit marketplace for NFTs, such as a user-friendly interface, strong community and variety of NFT offerings.
Most important of all, Reddit used a smart NFT marketing strategy to attract users. Interestingly, Reddit avoided the term ‘non-fungible token or NFT’ for the avatars and branded them as collectible avatars. Without any crypto jargon and flexibility for purchasing avatars in fiat currency, Reddit avatars successfully captured the attention of a broader user base. In addition, the element of utility in Reddit avatars with the facility of customization also boosted their popularity.
Conclusion
The review of the important highlights of the Reddit NFT collection proves that it has promising potential. At the same time, the NFT Reddit connection also emphasizes the radical growth in popularity of Reddit NFTs. With the help of Reddit Vault, users can purchase and store their avatars in a crypto wallet.
The wallet helps in storing and managing digital assets and serves complete control over ownership of the NFTs. The importance of Reddit NFT collection is evident in the proof of how web2 companies can shift into the web3 space. In the long run, Reddit can serve as a benchmark for future NFT-based platforms and marketplaces.
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*Disclaimer: The article does not constitute investment advice and should not be taken as such. 101 Blockchains shall not be responsible for any loss sustained by any person who relies on this article. Do your own research!
