Deutsche Bank, a former cryptocurrency critic, believes Meta’s decision to integrate NFTs into one of its companies – Instagram – will legitimize those assets.
Instagram will legalize NFTs
According to a report note released by Deutsche Bank on Sunday quoted by Coindesk, the deployment of NFT technology on Instagram has the potential to activate the entire market and make it mainstream.
Meta CEO and founder Mark Zuckerberg confirmed that the company will be bringing NFTs to Instagram over the next several months to allow users to put such assets directly on the platform.
The note indicated that Meta-owned Instagram will simplify the process of buying and selling NFTs, further reducing barriers to access to this form of digital asset. With its notable brand influence, the note said, Instagram could legitimize NFTs, thereby facilitating mass adoption by the public.
The German bank also predicted that Instagram, which built an NFT marketplace, could bring in about eight billion net transactions per year. In addition to Instagram, major Internet companies such as Twitter and Snap will bring NFTs to their platforms to some extent.
Earlier this year, Twitter began allowing users who have subscribed Twitter Blue, a paid premium service that includes features unavailable to regular users to display NFTs owned by them as verified profile pictures. With the increasing popularity of NFT projects such as Bored Apps Yacht Club, this feature is gaining immense attention.
Reddit, another social media giant, is seeking managers and engineers to “build(ing) the largest creator economy on the Internet powered by independent creators, digital goods, and NFTs.” It is also a sign that the company is potentially looking to grow its own NFT marketplace and a vibrant community based on NFT collections.
Hyper growth ahead for NFT market
The note describes the current NFT market as a phase of “hyper-growth”, adding that the total addressable industry is estimated to exceed $1 trillion.
According to the report, NFT transactions reached around $25 billion last year, which is more than 250 times the volume of about $95 million recorded in 2020.
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