The highly anticipated third generation of Reddit NFTs was launched on April 10th. Last year, The social media platform announced its first NFTs, the Reddit avatars, which sold out in no time. These unique digital collectibles allow collectors to showcase their online identities on the platform.
But here's an interesting twist — Reddit refers to these as "digital collectibles" instead of NFTs. They want to distance themselves from the negative associations often attached to the term. The Gen 3 avatars were deployed on Polygon's blockchain on April 5th, and it didn't take long for the Reddit NFT community to react. While some eagerly anticipated the drop, predicting a swift sellout, others expressed concerns about the expanding collection size potentially diluting its value.
The digital collectible's Impact on the Market
Now, talking about numbers. Based on Dune Analytics Dashboard, there are over 10.6 million collectible avatars and over 7.3 million Reddit avatar holders. The market capitalization of the collection is close to $74.5 million. Even as the Reddit collection continues to grow, market data shows sustained interest and demand for these tokens.
Over the past three months alone, according to NFT Price Floor reports, there have been 60 different Reddit NFT collections with a trading volume of 1820 ETH, equivalent to over $3.3 million. In addition, after just one month since their release, Reddit's collectible avatars on Polygon have attracted over 9 million holders! The integration has been a massive success, with a remarkable 132,000 sales recorded a few days after the launch. The average sale price of $114 speaks volumes about the demand and value placed on these digital treasures. Reddit has struck a chord with collectors and investors, solidifying its influence in the digital art world.
Polygon: The Blockchain Network Redefining NFTs
Polygon, the blockchain network hosting Reddit NFTs, has gained significant traction in the NFT space. Notable developments, such as the migration of the renowned y00ts collection, have contributed to its growing prominence. Polygon's scalability, low transaction fees, and vibrant ecosystem have attracted artists, creators, and collectors alike, making it a preferred destination for NFT enthusiasts.
The Rise of NFT Lending
But that's not all! The NFT lending market is also experiencing a noteworthy surge in activity. BendDAO, a leading NFT lending platform, has witnessed a significant increase in demand for loans secured by NFT collateral. The recent deposit of 59 Mutant Ape Yacht Club NFTs into BendDAO is a prime example of the growing interest in leveraging NFT assets for financial purposes. The NFT lending market has reached a six-month high with a weekly volume of $67 million! This indicates that NFTs are recognized as valuable assets beyond their artistic appeal.
So, it's clear that launching NFT collectibles, like Reddit Avatars, can be a savvy business strategy for brands and companies. The success of Reddit's NFTs, combined with the growing popularity of Polygon and the increasing interest in NFT lending, showcases the huge potential and profitability of the NFT landscape. By embracing this trend, brands can engage their audience, generate additional revenue streams, and solidify their position in the digital realm.