It has been some time now after the social discussion platform, Reddit launched its NFT program and lately it has been announced that millions are being part of it. Users are cleaning out collectable avatar NFTs from the platform in the hopes of huge gains.
What are Reddit NFTs?
Reddit provides its users avatars in order to represent their online personas and now users can acquire collectable avatar in the form of Non-Fungible Token (NFT) from the Reddit's Avatar Marketplace.
These NFTs are offered for a limited time only and are made by independent artists, base on the Reddit's mascot, Snoo. As the NFTs are minted on the Polygon blockchain, Redditors have to use a Polygon compatible wallet called Reddit Vault to store these NFTs. The current report shows more than 3 million wallets have been created for this purpose.
At the moment, about 86,000 types of NFTs are sold to users with initial price anywhere for $10 to $100. There was also free airdrop giveaways for high community contributors and now the NFTs' market cap has reached around $100 million.
Why is there a Surge Now?
Within the past 7 days, secondary market sales of Reddit NFTs has shown a substantial increase, surpassing $2 million. Among the biggest sales was Spooky Season Avatar for a resounding 18 ETH (Which in today's market, it's worth around $27,000). Polygon’s token, MATIC also showed notable price increase due to the hype that is following Reddit NFTs.
So why are the prices of these NFTs skyrocketing? The simplest explanation is High Demand. The platform has millions of active users but a limited supply of NFTs, this substantially helped the price of these NFTs to soar. NFT creators always start from zero when creating their communities but social platforms like Reddit already have huge number of community followers which helps when they launch their NFTs.
In addition, the platform provides an easy way for Redditors to Showoff there unique and expensive NFTs. This is one of the reason why some people acquire NFTs, they want to display their NFTs as a means of recognition from their fellow community members.
Reddit also shrewdly labeled these NFTs as 'Avatar' and its wallet as 'Vault', this really helped with the adoption because it alleviated the concerns and doubts that are usually associated with NFTs and Crypto.
Furthermore, Reddit NFTs are the new big thing. Everybody always wants to be part of new trends and are afraid of missing out. You never know, these NFTs may be worth millions some day.
Final Thoughts
Even though platforms like Twitter, Facebook and Instagram are trying to integrate NFTs with their platforms, they haven't showed the success Reddit is showing right now. As the NFT scene continues to get adopted by platforms like Reddit, growth and acceptance will be inevitable. Users of online social platforms can proudly display their NFT assets as well as trade them, which will have a very positive impact on the over all blockchain technology.
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Disclaimer
I am not a financial advisor. The information found here are for educational purposes and cite my personal opinion.
