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 novice users to Web3. Those are more unique wallets than the Opensea platform itself. Have these statistics been verified and if so, how is this possible? We explain everything to you.
Reddit has more wallets than Opensea
The community platform reddit, which has been offering to create its own avatar for two years, launched the option to purchase its profile image in the form of a non-fungible token (NFT) last July. Given the general market sentiment at the time, few people envisioned success of this implementation.
And yet, Pali Bhat, one of Reddit’s senior officials, revealed that: more than 3 million users have created a Vault digital wallet through the social network. The majority of them, 2.5 million, would have done this to get an avatar and use it as their profile picture.
To put this information in context, the Opensea NFT marketplace bill about 2.3 million users. The main competitor on Solana (SOL), Magic Eden, numbers 1.17 million while LooksRare has just over 100,000, according to data from Dune Analytics.
In other words, if the Pali Bhat revelations are true, Reddit would be standing right now more NFT wallets than the main marketplace industry, namely Opensea. For information, Reddit has something like: 52 million daily users and nearly 430 million people connect to it at least once a month.
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How did Reddit pull it off?
To embark on this adventure, Reddit partners with about 30 artists to build a collection of 44,000 NFTs representing unique avatars. Now all sold out, these were for sale for a price ranging from from 10 to 100 euros directly on the mobile application.
Specific, the collection is based on Polygon (MATIC), one of the leading second-tier solutions of Ethereum (ETH). Reddit covered all transaction fees users, making the coining process as smooth as possible.
Reddit’s real tour de force was right on never mention the terms NFT, cryptocurrency or blockchain. To get their avatars, users simply had to create a “Reddit Vault” (ie digital wallet), save the 12-word passphrase, and voila.
However, with these 44,000 NFTs, we are a long way from the announced 3 million wallets. In reality, Reddit didn’t stop there. Faced with the significant success of its first collection, the platform decided to produce an airdrop of 4 collections each with at least 300,000 NFTs.
According to information from Dune Analytics, the first collection of 44,593 NFTs has exactly 16,917 unique holders. The 4 new collections are composed of in total: 2,650,717 NFTs and regroup 2,642,162 unique holders.
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Reddit, vector of Web3’s democratization?
Since Pali Bhat’s disclosure of this information, many people have praised Reddit’s work in democratizing Web3 to the general public. The platform has indeed succeeded to introduce blockchain technology to millions of people by removing the technical barriers that can hold back most newbies.
However, let’s not jump to conclusions too quickly. Of these 3 million new NFT holders, how many are aware of being? According to Dunes Analytics, it appears that: only 15,000 addresses are really active and perform other interactions on the blockchain.
In other words, the majority of NFT holders on Reddit are unaware of the technology their avatar is based on. Finally, this seems logical given that the social network’s strategy was right to remove all entries from the blockchain in order to attract a maximum of beginners.
Now the challenge for Reddit is to succeed in training and gradually informing its users about the concepts of blockchain, digital wallets, network fees, etc. with nearly 3 million users now with one foot in Web3, Reddit has real responsibility to accompany them to finally take the plunge.
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Source: Dune Analytics
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