Why Are They So Popular?
Over the past few years, we’ve seen the NFT industry experience its fair share of ups and downs. While some pieces can be worth millions of dollars, others are worth nothing. So, why, exactly, have Reddit NFTs suddenly surged in popularity? What are these NFTs, and how can you get your hands on one?
A Breakdown of Reddit NFTs
Reddit NFT avatars are hosted on the Polygon blockchain and make up multiple separate collections. They are based on Snoo, Reddit’s alien-like avatar-cum-mascot. Polygon is a layer-2 Ethereum solution and stands as a top choice for DApp and DeFi service developers. As you may have guessed, Polygon can also be used to operate NFT marketplaces.
Between the 23rd and 24th of October 2022, almost two million dollars were generated through 4,700 sales of Reddit’s NFT avatars. What’s more, over three million Polygon wallets were created in the same month by users looking to collect these NFTs. This is huge for Reddit and Polygon alike.
Almost three million users now own a Reddit NFT avatar, which is almost as many as there are avatars available. But it’s worth noting that a large portion of these NFTs was given away to subreddit (community) members or air-dropped. It is thought that around 86,000 NFTs within the collection were sold, but this is still a huge number and has given the Reddit NFT collection a market cap of around $100 million.
As you can see in the Dune chart above, the sale of Reddit NFTs has been climbing since September but saw a sharp spike in October, when sales grew exponentially to 26,000. At the moment, this number is continuing to increase. In fact, Reddit’s NFTs are challenging the likes of Bored Ape Yacht Club, a hugely popular NFT avatar collection worth millions of dollars.
One NFT even sold for 18 ETH, which currently equates to around $24,000. This was one of the avatars from the Spooky Season collection, which you can find on OpenSea.
Polygon has also benefited from the hype of Reddit’s NFT collection. Between the 23rd and 26th of October, the price of Polygon’s MATIC coin rose from $0.8 to $0.95. Though one MATIC is still worth less than a dollar, this is a healthy price hike and is undoubtedly good news for Polygon.
But why are so many people now buying these NFTs? Are they useful in some way or simply experiencing a wave of public hype?
What Do Reddit NFTs Do?
Reddit NFTs, like many other NFTs, don’t do much in terms of functionality. They are tokens, after all, so their main purpose is to hold value (subject to demand). But these avatars can also be set as Reddit account profile pictures.
Beyond this, you can sell or trade your Reddit NFTs with other collectors.
How to Buy Reddit NFTs
If you’re interested in buying or collecting Reddit’s NFT avatars, you can find them on OpenSea, one of the world’s biggest NFT marketplaces.
You may find it a little overwhelming when you search for Reddit NFTs on OpenSea, as there are numerous Snoo NFTs for sale. This can make it hard to choose which you’d like to purchase. Many NFT artists have created and listed their own Snoo-inspired NFT avatars that range in price from less than a hundred dollars to tens of thousands.
Take the Drip Squad NFT collection, for example. You can grab a Drip Squad NFT for just $30, whereas other tokens from this collection are worth hundreds of dollars at the time of writing. The price usually depends on the uniqueness of the avatar and the demand surrounding it.
Reddit NFTs Are on the Rise, For Now
While Reddit NFTs are certainly all the hype at the moment, nothing is certain in the NFT realm. We may see these NFTs continue to grow in popularity, but their demand could also plateau or even decrease along with their value, such is the nature of NFTs!