Reddit’s NFT avatars are off to a surging start, with the collections driving $2.5M in trade volume over the past 24 hours, according to Dune Analytics.
And the performance is a boon for Polygon, which is supporting the NFT marketplace. The smart contract network’s native token, MATIC, has jumped almost 13% in four days compared to a 5% uptick for Ether in the same period.
Dune’s dashboard shows that more than 2.8M wallets hold Reddit’s NFT avatars. The collections drove $6M in volume and 22,229 sales since launching in July.
Floor prices for the collections vary significantly, ranging from 0.05 ETH to 1.73 ETH.
Skeptics believe the investors purchasing Reddit’s NFT avatars on the secondary markets may be setting themselves up for disappointment.
“NFT Twitter getting so excited they became exit liquidity,” said DanielitoG25, an NFT collector with a Bored Ape avatar on his Twitter profile.
Others are praising Reddit for driving NFT adoption among new users. “Reddit users are getting red-pilled on ‘digital collectibles’,” Lark Davis, a popular crypto influencer, posted. “NFTs will be bigger than most can imagine still!”
BAYC2745 of Psychedelics Anonymous chimed in: “NFTs will be mass adopted by hundreds of millions (e.g Reddit PFPs) of people who have no idea they are interacting with NFTs.”
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Reddit launched its Polygon-powered NFT marketplace on July 7. The Polygon PoS Chain is the No. 6 smart contract network with a total value locked of $1.2B, according to DeFi Llama.
The Reddit avatar NFTs went on sale for between $9.99 and $99.99 each. Reddit’s most active users were also eligible to receive an avatar via airdrop, although the freely issued NFTs are fetching lower prices on secondary markets.
The artists that designed the NFTs receive a share of secondary market sales. So far, artists have earned more than $103,000 in royalties from the collections.
MATIC’s surge comes as Polygon continues to ink partnerships with major enterprises. On Oct. 20, Nubank, a Latin American fintech servicing more than 70M customers, announced it will launch a blockchain and native token leveraging Polygon’s technology.
In September, Robinhood launched its Polygon-powered web3 wallet in beta to the first 10,000 iOS users on its waitlist. In April, Stripe also began processing USDC payments via the Polygon PoS network.