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• NFT enthusiasm has fallen sharply in 2022
• Reddit has been offering an NFT marketplace since July – with great success
• Almost 3 million Reddit users already have an NFT wallet
It is well known that those who are doomed to die live longer – this saying could also apply to non-fungible tokens (NFTs). Some observers were already prophesying that NFTs would disappear from the scene as quickly as they arrived. But the NFT activity on Reddit speaks a different language.
NFT euphoria long gone
In 2021, the prices of NFTs knew only one direction, steeply upwards. Within a few months, the graphic tokens went from being a marginal topic that only a few die-hard crypto fans could get excited about, to a mass hype. Millions of dollars were paid for particularly popular meme images like Bored Apes. NFTs were seen as a key technology for a full-scale digital revolution.
However, since the peak of the boom in the fall of 2021, NFT trading volume has declined rapidly, and digital marketplaces such as OpenSea have had to accept significant sales losses. Meanwhile, the subject of NFTs seems unlikely to mobilize masses – people’s worries about their declining purchasing power due to inflation and the rising interest burden are too great.
Great interest in NFTs on Reddit
However, this pessimistic assessment of the state of the NFT industry seems misguided given the growing interest in NFTs from Reddit users. NFTs have been integrated into Reddit since July, and since then the digital images can be easily traded on the website. According to data from Dune Analytics, nearly three million avatars that can be displayed as a profile picture on the platform have now been mined as NFTs on the Polygon blockchain. The number of users owning tokens increased to nearly 2.9 million wallets. As a result, Vaults, Reddit’s NFT marketplace, has now become a serious rival even to industry leader OpenSea – in less than five months since its inception.
Given the strong growth, it’s no surprise that Pali Bhat, Reddit’s Chief Product Officer, was very pleased with the interest in the platform’s own avatars at TechCrunch Disrupt, which took place from October 18 to 21. A major advantage of Reddit’s NFT marketplace is that users can easily purchase the collectible NFT avatars, of which there are already multiple collections, each with several thousand individual pieces, with a credit card payment. Thus, they do not need cryptocurrencies, but can use their local fiat currency. In addition, they do not have to make a difficult detour via an external exchange.
Golden Autumn on Reddit’s NFT Marketplace
Vaults were especially popular in late October when trading volume skyrocketed. On October 25 alone, $2.5 million worth of NFTs changed hands, BTC ECHO reported. The collections “The Senses” and “Spooky Season” are particularly popular. According to “Redditfloor”, the floor price for an avatar from the Senses series increased many times at the end of October. On OpenSea, the cheapest Senses NFT is currently trading for 13 ethers, which is around $16,000. The most expensive graphic token even changed hands for $40,000.
NFT hype on social media platforms?
While the crypto market in general is falling into a winter, there are signs of a new NFT hype, at least on social media platforms. Because in addition to Reddit, various internet giants are also pushing into the NFT industry. Meta Platforms is already testing NFTs on Instagram in a pilot project. On Twitter, you can buy NFTs in a roundabout way – the company entered into a partnership with the e-commerce service provider Shopify. And eBay, where NFTs can be bought and sold since 2021, also expanded its NFT business this summer by acquiring NFT marketplace KnownOrigin.
The crypto crisis is not over yet
However, it is certainly too early to see the next crypto and NFT bull market coming. Internet currency prices were unable to take advantage of the general market recovery in the second half of October and the first days of November and are still trading at their lowest levels of the year. The prices of NFTs have also fallen significantly. After all, Bitcoin, Ether and Co. could now stabilize somewhat after the sharp downward trend between November 2021 and June 2022. The amount of bad news that rocked the crypto market with sad regularity this spring has decreased accordingly. However, the recently announced liquidity bottlenecks on crypto trading platform FTX, which is likely to be taken over by industry rival Binance, is unmistakable evidence that the crypto drama of 2022 is likely to expand by one chapter or the other.
Gearing must be between 2 and 20
Image credits: r.classen / Shutterstock.com, Wit Olszewski / Shutterstock.com