High demand sends the price sky high
Reddit brings millions of users to non-fungible tokens (NFTs) with the individual price of the rarest examples rocketing.
Reddit’s Product Manager Pali Bhat confirmed that over three million Redditors have created crypto wallets to take advantage of their NFT-based marketplace. Now some NFTs trade on secondary markets for highly inflated prices.
The asking price for select NFT avatars is now over 100 ETH – and has a value of over $130,000.
A very bullish story
NFTs are taking Reddit by storm, with very positive indicators for the industry as a whole. The social network launched its NFT marketplace in July alongside its own collection of 40,000 Reddit NFTs. The popularity of NFTs on the platform has skyrocketed since then.
With three million wallets to its name, the Reddit NFT market has already surpassed more established marketplaces, at least by some metrics. OpenSea is believed to have around 2.3 million active users by comparison.
The sense of excitement is reaching a fever pitch on Reddit. In particular, the r/CollectibleAvatars subreddit has become the focus of much hysteria, with users needing to be reminded not to “old money on NFTs, and don’t spend money you can’t afford to lose.”
Despite this, enthusiasm has not been dampened. As one user responded: “From what I see, the designs are worth the money. I probably won’t be selling any of them…”
Reddit NFT Mania moves to Twitter
On social media, the Reddit NFT craze is starting to spread. On Twitter, the topic has even started trending. Part of the success of Reddit NFTs may be due to their marketing pitch that chose not to use crypto jargon.
As one NFT project manager explained on Twitter: “Reddit CEO Steve Huffman made the process so much easier for noobs unfamiliar with crypto or NFT by not using any ‘crypto words’ in any of the announcements made. Most of the buyers didn’t even know they were using crypto.”
Another factor for success may be the social credibility and status the NFTs are perceived to give.
A user on Reddit compared the NFTs to customizable skins in video games and other media. In a post titled “Why I think reddit avatars are better than other jpegs ntfs,” the user explained what sets Reddit NFTs apart.
“Reddit avatars can be compared to skins in video games, you buy them to customize your appearance and look unique. Rocket league, counter strike, fortnite, [you] name it,” they said. “All of these games have cosmetic items worth thousands of dollars. There will always be someone willing to pay big bucks to look as unique and wealthy as possible.”
According to the user on the subreddit r/CryptoCurrency, it was “pretty true” that the phenomenon had converted people from “hating nfts to buying reddit avatars.”
Another piece of the puzzle conversion could be that the initial cost to grab one of the NFTs was a relatively cheap $9.99 to $99.99, meaning more people could afford the outlay.
As for Reddit, the site claims to have 52 million active daily users. There is plenty of room to board more people – and a potentially much larger market waiting to be untapped.
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