Reddit NFT Minting Hits an All-time High
Reddit’s non-fungible token (NFT) collection hit another milestone in the very first week of December. According to on-chain analytics, Reddit minted 255,000 “avatars” last Saturday. The new record surpassed the previous all-time highs set in the last few days of August.
Reddit Collectibles Record a Significant Price Surge
On Saturday, about 255,000 Reddit Collectible Avatars were minted on Reddit breaking the previous record of more than 200,000 created on August 30 and 31. Reddit users mostly use NFTs as user avatars on social media networks. Moreover, many freelance artists develop these NFTs while also using Reddit.
According to a tweet published by Sandeep, one of the co-founders of Polygon, the data collected by Dune shows the total number of Collectible Avatars — the word Reddit uses for its Polygon-based NFTs — in circulation is almost 4.4 million.
Source: Dune
In addition, the collection is quite popular in secondary markets. Some of the most coveted items fetch more than five times their original cost. At the time of the collection’s July introduction, it was seen primarily as a means of accelerating the widespread use of blockchain technology.
Reddit chose to refer to them as digital “collectibles” rather than NFTs due to its reluctance to accept crypto payments for avatar purchases. The corporate entity was careful to differentiate the product from NFTs and cryptocurrencies. The artifacts are fixed-priced rather than auctioned, and the platform only accepts fiat currencies as payment.
More on Reddit Collectibles Avatar Sales
Reddit unveiled its plans for avatars in July after introducing tokenized community points the year prior. In its statement, the entity made no mention of NFTs. The strategy seems to have been successful.
While some Collectible Avatars have found their way onto secondary markets like OpenSea, where their floor values have skyrocketed, most holders obtain them through Reddit minting.
Despite the amount of Reddit avatar NFTs created, Dune data indicates that little over 41,000 have made sales since their launch. Moreover, there are over 3.7 million avatar holders, showing that the majority prefer to hold their NFT.
Source: Dune
On October 24th, the sales volume of the collectibles reached an all-time high of $2.5 million across 1,991 customers. On secondary NFT marketplaces such as OpenSea, some of the rarest Reddit NFTs fetch premium prices, with the most expensive selling for over $300. In contrast, the platform’s primary marketplace sees values around $50.
Reddit collaborates with independent artists for each release. The Singularity (98,000), Aww Friends (57,000), Meme Team (39,000), Reddit Cup 2022 (34,000), and Drip Squad (28,000) minted the most coins on Saturday.
NFTs don’t always come from places you would expect. Over the years, Reddit has introduced many features to its community that indicates the platform will broaden its support for the NFT industry in the years to come.
Minting collectibles on Reddit is every creator’s dream come true. Only 5% of the sales revenue goes to the social media platform. The remaining 95% goes to the creator program as well as to pay for blockchain fees and minting expenses.
