More than 4.27 million different wallets holding NFT avatars are currently available on Reddit.

Amidst declining NFT sales and a turbulent cryptocurrency market, interest is growing in Reddit's venture into non-fungible tokens (NFTs) and tokenized avatars. As a result, the Polygon-based effort has now produced over 5 million collectibles, marking a new milestone.

The Reddit Collectible Avatars NFT project hit the 5 million milestone during the past 24 hours, according to blockchain data compiled on a Dune dashboard. They are also not disproportionately concentrated among high-value NFT collectors, with the project having more than 4.25 million distinct wallets in total (or whales). Of those wallets, 3.95 million are containing at least one Reddit NFT.

With the help of Ethereum sidechain network Polygon, popular online forum Reddit intends to launch NFT avatars in July, offering both free and premium avatar options. Most of the top users and builders throughout the site's millions of unique groups have so far gotten free avatars in exchange for their regular usage (or subreddits).

More than three million Polygon wallets have been established by users to keep their NFTs, according to Reddit Chief Product Officer Pali Bhat, who made the revelation in October. The news sparked a surge in interest in and trading for the collection's most expensive avatars, leading to trades worth millions of dollars on the secondary market in a matter of days.

A brief speculative bubble was formed by Reddit's premium NFTs, although only about $700,000 worth of transactions have been conducted in the past month. The Bored Ape Yacht Club, a heavily traded NFT project, took in $61.6 million in just 30 days of trading. By comparison, the Reddit NFTs have only seen secondary transactions of about $11.85 million to date.

Reddit's NFT program is still a striking example of how Web2 platforms might promote the widespread adoption of Web3 technology in the future through NFT airdrops and incentives, though.

In fact, the effort has recently issued more NFTs than before. On December 3, more than 250,000 Polygon NFTs were produced, breaking the previous single-day peak set in August and setting a new daily record.

Reddit is one of many significant businesses and companies adopting Polygon, including with Meta with its Instagram NFT minting project, Starbucks with its recently unveiled Web3 rewards program, and Nike with its upcoming digital fashion platform.