Active engagement of tech giants in the NFT race not only boosts the entire ecosystem to grow but also expands its popularity in the mainstream.
It came without surprise that Meta (formerly Facebook) and Instagram will soon add NFT-centric features.
Since the day Mark Zuckerberg brought Metaverse to the discussion last year, NFT have exploded in popularity.
In March 2022, the Meta CEO revealed that Meta has planned to let users create, introduce and sell their NFT products on the company’s social networks like Meta and Instagram.
Instagram and NFTs are a Winner
If implemented, it would be the largest-ever backed NFT product, reinforcing the controversial asset’s position in the digital world. We all know that Meta in general and Instagram, in particular, play a huge role in the current 4.0 digital era.
Despite the fact that the NFT integration plan is still in its early stages, many people are very bullish on the vision of the project.
Recently, Deutsche Bank, one of the world’s top banking companies released a research report on Sunday, highlighting the positive impact of NFT and Instagram’s association on enlarging the market.
According to the bank, Instagram, with a vast customer base, is a perfect bridge to potentially connect the mainstream audience and the world of NFTs.
There’s a huge opportunity for mass adoption.
The development team at Instagram is working on the new NFT features that will allow users to display NFTs as profile pictures, as well as develop a test platform for users to create their own products; new NFT products, thereby commercialized to those who need them.
Starting from zero, but after only less than 100 weeks of operation, Instagram reached its brilliant $1 billion journey, marking the impressive success of a startup with just over a dozen employees.
It can be considered a spectacular breakthrough made by Instagram’s own efforts, instead of luck.
Building a solid community is the social network’s strength. With NFT implementation in the works, Instagram is expected to create another successful interactive experience for users.
As noted by Deutsche Bank, unlike other big players, Instagram has its way to approach users.
The platform will stick with its primary purpose – a professional interface that is simple – the process of buying and selling NFTs will be therefore simplified and optimized to best serve users.
Instagram’s powerful global brand awareness will, “lend itself to legitimatize NFTs, which could serve to erode buying hesitancy across the company’s broader audience.”
Although NFT products are not actively adopted by the mainstream because of their speculative value in which prices rise or fall at terrifying rates, as well as their lack of security.
In the future, with the support of tech giants like Meta, NFT can become one of the valuable digital goods.
Over the last two or three years, blockchain and digitalization have become the focal point of many countries.
NFTs is seen as an example of blockchain technology’s impact on life. This type of digital asset owns distinctive properties, from uniqueness, non-interchangeability, to rarity, and gradually gains popularity.
A Massive Tailwind
The launch of an NFT marketplace on Instagram clearly has a significant chance for NFT to gain traction, according to the bank’s insights.
The bank expects that it could generate up to $8 billion in net yearly revenue, based on normal NFT marketplace fees and conservative assumptions about user penetration and average transaction amounts.
But Instagram won’t play this game alone. Other giants such as eBay, Twitter, and Snap are already on board, taking measures to accept digital assets and considering integrating the innovation into their scope of business.
The research also pointed out that the NFT market is currently in “hypergrowth mode,” having generated around $25 billion in transaction volume in 2021, an increase of approximately 250 times from the total amount of approximately $95 million expected in 2020.
According to Deutsche Bank, the market opportunity for NFTs is extremely enormous, with the total addressable market (TAM) projected to be more than $1 trillion, with artworks, collectibles, and gaming among the most promising sectors.