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• NFT enthusiasm dropped sharply in 2022
• Reddit has been offering an NFT Marketplace since July – with great success
• Nearly 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 appeared. But NFT activity on Reddit speaks a different language.
The NFT euphoria is long gone
In 2021, NFT prices knew only one direction, namely sharply upwards. Within months, chart tokens went from a fringe topic that only a few die-hard crypto fans could get excited about to mass hype. Millions of dollars have been paid for images of particularly popular memes like Bored Apes. NFTs were seen as a key technology for a large-scale digital revolution.
But since the peak of the boom in the fall of 2021, NFT trading volumes have fallen rapidly and digital marketplaces such as OpenSea have had to accept significant sales losses. In the meantime, the topic of NFT hardly seems to mobilize the masses – people’s concerns about their purchasing power declining 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 digital images can be swapped easily 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 has grown to almost 2.9 million wallets. As a result, Vaults, Reddit’s NFT marketplace, has become a serious rival even to industry leader OpenSea – and that 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 during TechCrunch Disrupt, which took place from 18 to October 21. A big advantage of Reddit’s NFT Marketplace is that users can easily buy the collectible NFT avatars, of which there are already several collections, each with several thousand individual pieces, with payment by credit card. So they don’t need cryptocurrencies, but can use their local fiat currency. Plus, they don’t have to make a cumbersome detour via an external exchange.
Golden Fall on Reddit’s NFT Marketplace
Vaults were particularly popular in late October when transaction volume exploded. 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 several times at the end of October. On OpenSea, the cheapest Senses NFT is currently trading for 13 ether, or around $16,000. The most expensive chart token even changed hands for $40,000.
NFT hype on social media platforms?
As the crypto market typically falls into a winter, there are signs of new NFT hype, at least on social media platforms. Because in addition to Reddit, various Internet giants are also getting into NFT trading. Meta Platforms is already testing NFTs on Instagram as part of a pilot project. On Twitter, you can buy NFTs in a roundabout way – the company has partnered with 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 Isn’t Over Yet
However, it is certainly premature to see the next crypto and NFT bull market coming. Internet currency prices were unable to take advantage of the general market rally in the second half of October and the first days of November and are still trading at their lows for the year. NFT prices have also dropped significantly. After all, Bitcoin, Ether and Co. have now been able to stabilize somewhat after the strong downward trend between November 2021 and June 2022. The amount of bad news that rocked the crypto market with sad regularity in the spring has decreased accordingly. However, the recently announced liquidity bottlenecks of crypto trading platform FTX, which will likely be taken over by its industry rival Binance, is unmistakable proof that the 2022 crypto drama is likely to be extended. by one or the other chapter.
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