Reddit’s NFT platform, which was introduced only a few months ago, has already eclipsed the major NFT marketplaces in terms of active users.
The website’s store, which is called “Vaults,” opened in July. Pali Bhat, the company’s chief product officer, said earlier this month that since then, and over 3 million Reddit users have opened Vault accounts and 2.5 million have bought Reddit NFTs.
Since then, this number has risen to 2.8 million Reddit NFT holders, and Dune, a blockchain analytics company, says that the total amount sold has topped $8 million. OpenSea, which says it is the biggest NFT marketplace, has 2.3 million active users right now, while Axie Marketplace and Magic Eden each have 2.1 million.
Reddit hasn’t used the phrase NFT
Since January, there have been reports that the number of NFT trades has dropped by 97 percent. In its new project, the website has stopped using the term “NFT” and instead calls its digital images “Collectible Avatars.” The co-founder and CEO of Reddit, Steve Huffman, told the Verge that the company tries not to use cryptocurrency terms that might confuse users.
Reddit users can use Avatars as their profile pictures. They cost between $10 and $100 and are bought with credit cards instead of cryptocurrency. According to a press release, Reddit picked to store them on Polygon, an Ethereum-compatible blockchain, because of its “low cost transactions and commitments to sustainability.” In August, free Avatars were airdropped to Reddit users who had been very active on the site.
A post on Reddit from a user named TheRedditAvatarWhale, who says he has spent $50,000 on Avatars, says that part of Reddit’s success is that it makes everything easy to understand.
“Reddit makes Digital Collectibles simple, unlike NFTs,” they wrote. “There is a steep learning curve to traditional NFTs that acts as a barrier to entry.”