Coinbase Says Reddit’s Success Highlights the Potential for NFTs

The platform's non-fungible-tokens are booming despite the bear market, the report said.

AccessTimeIconOct 27, 2022 at 11:56 a.m. UTC
Updated May 9, 2023 at 4:00 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

Reddit non-fungible tokens (NFT) have dominated conversation in cryptocurrency markets this week after they generated $2.5 million in daily trade volume and prompted 3 million people to sign up for NFT wallets on the social media platform, Coinbase (COIN) said in a report Wednesday.

NFTs are digital assets on a blockchain that represent ownership of virtual or physical items and can be sold or traded.

“Facebook, Instagram and Twitter all have NFT integrations, but those initiatives focus on ‘showing off’ NFTs purchased from marketplaces and adding your favorite as a profile picture,” however, Reddit’s NFT marketplace makes it a direct participant, the report said.

Reddit’s strategy also focuses more on its community as it gives extra features to NFT owners and supports creators, the note said. It is airdropping – or giving away – NFTs to the more active users on the platform.

The role of the Polygon blockchain is also key, Coinbase said. As a layer 2 blockchain, it is compatible with Ethereum, while allowing users to transact more quickly and for lower network fees, thereby “addressing two major barriers to crypto adoption.”

Even as NFT sales volumes have plummeted this year, dropping 97% from the January peak, Reddit’s success shows the potential for these tokens, the note said. The company is likely to capitalize during the current slowdown, and has already started teasing its Halloween avatar collection, the note added.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by; both groups have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.

Author placeholder image

Will Canny is CoinDesk's finance reporter.

Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.

Read more about