The latest announcement by Reddit about its third-generation digital collectibles, named “Reddit Avatars”, has generated mixed responses from the community.
While some members are delighted about the release, others have expressed their frustrations.
The introduction of the new collection, comprising 10.6 million pieces, has raised concerns among critics who fear that the increased supply could lead to a dilution of the collectors’ holdings.
Reddit’s third-generation NFT collection divides community
Moreover, some skeptics argue that NFTs are still in a bear market, and there is no need to inflate the supply.
However, supporters of the move point to the high demand for the previous generations, which sold out quickly.
In the last 90 days, the 60 different Reddit NFT collections saw a significant volume of 1,820 ETH, indicating that there is still plenty of demand for the Reddit Avatars.
Reddit partnered with Layer 2 blockchain Polgyon in August 2022 to create a marketplace for digital collections.
The initial 40,000-piece collection of avatars sold out quickly, with a combined market cap of approximately $74m, and the highest collection price floor is 1.05 ETH.
The third-generation Reddit Avatars are set to be released on April 10, and it remains to be seen whether they will be as successful as their predecessors.