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. That’s more unique wallets than the OpenSea platform itself. 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, which had already been offering to create its own avatar for two years, launched last July the possibility of buying its profile image in the form of a non-fungible token (NFT). 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 over 3 million users have created a Vault digital wallet through the social network. The majority of them, 2.5 million, would have done so to obtain an avatar and use it as a profile picture.
To put this information into context, the OpenSea NFT marketplace account approximately 2.3 million users. The main competitor on Solana (SOL), Magic Eden, lists 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 currently hold more NFT wallets than the main marketplace of the industry, namely OpenSea. For information, Reddit has about 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 has partnered with around 30 artists to build a collection of 44,000 NFTs representing unique avatars. Now all sold out, these were available for purchase for a price ranging from 10 to 100 euro directly on the mobile application.
Concretely, the collection is based on Polygon (MATIC), one of the main second layer solutions of Ethereum (ETH). Reddit covered all transaction fees users, making the mint process as smooth as possible.
Reddit’s real tour de force was precisely to do not mention the terms NFT at any time, cryptocurrency or blockchain. To get their avatars, users simply had to create a “Reddit Vault” (i.e. digital wallet), save the 12-word passphrase, and voila.
However, with these 44,000 NFTs, we are far from the 3 million wallets announced. In effect, 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 containing at least 300,000 NFTs.
According to information from Dune Analytics, 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 NFTs and regroup 2,642,162 unique holders.
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Reddit, vector of democratization of Web3?
Since the revelation of this information by Pali Bhat, many people have praised the work of Reddit for the democratization of Web3 with the general public. Indeed, the platform succeeded to introduce millions of people to blockchain technology by removing the technical barriers that can hold back the majority of novices.
However, let’s not jump to conclusions too quickly. Of these 3 million new NFT holders, how many are conscious of being? According to Dunes Analytics, it seems 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 not aware of the technology on which their avatar is based. Finally, this seems logical since the strategy of the social network was precisely to remove all mentions of the blockchain to attract a maximum of novices.
Now, the challenge for Reddit is to succeed in training and gradually informing its users about the notions of blockchain, digital wallets, network fees, etc. With nearly 3 million users now having one foot in Web3, Reddit has real responsibility to accompany them to definitively take the plunge.
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Source: Dune Analytics
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Freelance writer located between Paris and Toulouse. I want to share my passion for the world of cryptocurrencies to as many people as possible. I am also interested in technical analysis and trading.
Lilian Aliaga
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