The NFT market has a savior, and no it’s not “monkeys” or “birds” this time
The past few weeks have not only been a tough time for the crypto market, but also for the NFT market as a whole. With sales and floor prices plunging to new lows, some of the top NFT groups were at their lowest.
A sad sob story here?
In a strange twist, that doesn’t seem to be the case with Reddit’s limited edition NFTs. Reddit’s NFTs are sold across various marketplaces such as OpenSea for a profit. People buy these NFTs with the Reddit avatars.
Reddit marked its NFT debut with the announcement of CryptoSnoos in February 2022. Four months later, in July, Reddit arrived out with the blockchain-backed “collectible avatars” minted on the Polygon Network.
Additionally, all artwork was created by independent artists who were also Reddit users. What made these NFTs different was that buyers could use fiat and cryptocurrencies to purchase these NFTs.
When sales of these NFTs began in August, the collectibles have sold for thousands of dollars. Interestingly, sales on OpenSea have overtaken sales on Reddit’s own marketplace.
A possible explanation for the increased sales and prizes at OpenSea could be its cross block chain support across the Polygon, Ethereum, Klaytn and Solana blockchains.
Limited edition NFTs
The NFTs listed on the Reddit Avatar Store currently sell for anywhere between $5 and $49. The more expensive NFTs are sold out and now appear on OpenSea with a marked price indication.
The more popular ‘The Senses x Reddit Collectible Avatars’ and ‘Foustlings x Reddit Collectible Avatars’ have performed relatively well.
Since August 20th, The Senses collection has raised 15.3 ETH on Polygon ($25,000). The collection has a floor price of 0.36 ETH on the Polygon network.
The Foustlings collection, on the other hand, has around 1,800 works of art Open sea and sales to date amount to 9.9 ETH on Polygon ($16,480). The floor price for this collection is 0.1 ETH on Polygon.
Not without its problems
The popularity of the Reddit NFT collection comes as a relief to digital art enthusiasts, as just a few days ago the NFT market was on the brink of a liquidation crisis.
Fears of an NFT bubble triggered by the debt crisis on lending platform BendDAO caused OpenSea’s daily volume to drop more than 98% towards the end of August.
Further panic struck when a Bored Ape Yacht Club (BAYC) NFT entered a liquidation auction on August 18 after the floor price fell 52%. This led to a bank run on BendDAO. In the middle of the debt crisis, BendDAO called an emergency voice to change its protocol to improve NFT liquidity.
