Thanks to its collection of non-fungible tokens (NFTs) that can be used as avatars, the social network Reddit claims to have attracted 3 million new users to Web3. They are more unique wallets of the same OpenSea platform. Are these statistics verified and, if so, how is this possible? We will explain everything to you.
Reddit has more wallets than OpenSea
The community platform Reddit, who had already offered to create their own avatar for two years, launched last July the possibility of purchasing their profile picture in the form of a non-fungible token (NFT). Given the general market sentiment at the time, few people imagined success of this implementation.
Still, Pali Bhat, one of the top Reddit officials, revealed it over 3 million users have created a Vault digital wallet through the social network. Most of them, 2.5 million, would do this to get an avatar and use it as their profile picture.
To contextualize this information, the OpenSea NFT market I count about 2.3 million users. Solana’s (SOL) main competitor, Magic Eden, lists 1.17 million while LooksRare has just over 100,000, according to data from Dune Analytics.
In other words, if Pali Bhat’s revelations are true, Reddit would hold up right now more NFT wallets than the main market of the industry, or OpenSea. For information, Reddit has approx 52 million daily users and nearly 430 million people connect to it at least once a month.
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How did Reddit do it?
To embark on this adventure, Reddit has collaborated with around 30 artists to build a collection of 44,000 NFTs representing unique avatars. Now all sold out, these were available for purchase at a variable price from 10 to 100 euros directly on the mobile application.
Concretely, the collection is based on Polygon (MATIC), one of the leading second layer solutions of Ethereum (ETH). Reddit has covered all transaction fees users, making the minting process as smooth as possible.
Reddit’s real tour de force was just that never mention NFT terms, cryptocurrency or blockchain. To get their avatars, users simply had to create a “Reddit Vault” (ie a digital wallet), save the 12 word passphrase and voila.
However, with these 44,000 NFTs, we are far from the 3 million wallets announced. Indeed, Reddit didn’t stop there. Faced with the remarkable success of its first collection, the platform decided to produce an airdrop of 4 collections each containing at least 300,000 NFTs.
According to information from Analysis of the dunes, the first collection of 44,593 NFTs has exactly 16,917 unique holders. As for the 4 new collections, they are composed in total of 2,650,717 NFT and regroup 2,642,162 sole holders.
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Reddit, vector of democratization of the Web3?
Since Pali Bhat disclosed this information, many people have praised Reddit’s work on democratizing the Web3 to the general public. Indeed, the platform was successful to introduce millions of people to blockchain technology removing the technical barriers that can hold back most novices.
However, let’s not jump to conclusions too quickly. Of these 3 million new NFT holders, how many are they aware of being? According to Dunes Analytics, it looks just like that only 15,000 addresses are actually active and perform other interactions on the blockchain.
In other words, most NFT owners on Reddit they are not aware of the technology their avatar is based on. Finally, this seems logical given that the social network’s strategy was precisely to remove all mentions to the blockchain to attract a maximum of novices.
Now, the challenge for Reddit is to be able to gradually train and inform its users about the notions of blockchain, digital wallets, network fees, etc. With nearly 3 million users now with one foot in Web3, Reddit has a real responsibility to accompany them to take the big step definitively.
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Source: Dune Analytics
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