What is the reason behind Iceland having a lot of mythology? Is it related to the presence of Vikings in the country?

I guess the subtext of your question is, “Why does a nation with a population no larger than a small city — 300,000 people or so — have such a rich literary tradition?” And, I guess it’s related to their social isolation, way up in the North Atlantic, away from everybody else. So, traditions are maintained and reinforced, because there’s little distraction from anywhere else. I understand there are islands in the Aleutians which have been so isolated, that there are songs people sing that are quite unchanged from the end of the last Ice Age, ten thousand years ago! So, a similar principle obtains in Iceland, where their local culture breeds and reinforces a very rich tradition of myths, even though there aren’t many people there. No doubt, the Vikings brought there local culture there, and provided the fundamental basis for Icelandic mythology. But, the social isolation of Iceland created unique and rich elements that developed independently. https://www.quora.com/What-is-the-reason-behind-Iceland-having-a-lot-of-mythology-Is-it-related-to-the-presence-of-Vikings-in-the-country?show_editor=True