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 legitimize NFTs
According to a report note published on Sunday by Deutsche Bank, cited by Coindesk, the deployment of NFT technology on Instagram has the potential to energize the entire market and make it more widespread.
Mark Zuckerberg, the CEO and Founder of Meta, confirmed that the company will bring NFTs into Instagram in the next several months to let users mint such assets directly on the platform.
The memo says Instagram, owned by Meta, will simplify the process of buying and selling NFTs, further reducing barriers to accessing this form of digital asset. With its noticeable brand effect, the note says, Instagram can legitimize NFTs, thereby facilitating a greater level of audience adoption.
The German bank also predicted that Instagram building an NFT Marketplace can bring roughly eight billion net transactions per year. Besides Instagram, major internet companies like Twitter and Snap will, to some degree, bring NFTs into their platforms.
Earlier this year, Twitter began allowing its subscribed users to Blue Twitter, a paid premium service that includes features not available to regular users, to showcase the NFTs they own as verified profile pictures. This feature is attracting immense attention with the growing popularity of NFT projects like Bored Apes Yacht Club.
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.” This is also a sign that the company is potentially trying to develop its own NFT marketplace and a vibrant community based on NFT collections.
Hyper growth ahead for the NFT market
The memo describes the current NFT market as being in a “hyper-growth” phase, adding that the total addressable industry is estimated at over $1 trillion.
According to the report, the transaction volume of NFTs reached around $25 billion last year, 250 times more than the volume of approximately $95 million as recorded for 2020.
