​​NFTs Could Go Mainstream With Instagram’s Planned Support, D | NFT NEWS

​​NFTs Could Go Mainstream With Instagram’s Planned Support, Deutsche Bank Says

Instagram could lower the barrier for entry to the NFT market, the report said.

Instagram: Attracting non-interchangeable tokens (NFT) to a wide audience of Instagram could potentially boost the overall market by becoming mainstream, Deutsche Bank said in a report on Sunday.
Earlier this month, Meta Platforms (FB) CEO Mark Zuckerberg said the company was “working on implementing NFT on Instagram in the near term.”

Instagram will simplify the process of buying and selling NFT, thereby reducing barriers to entry, the bank said, adding that the strong brand awareness of the platform worldwide “will allow legitimizing NFT, which may help reduce indecision when buying among a wider audience of the company.”

NFTs are digital assets on the blockchain that represent ownership of virtual or physical items and that can be traded or sold.

The launch of the NFT trading platform on Instagram, owned by Meta, is highly likely to gain momentum, according to the report. Based on typical NFT marketplace fees and conservative assumptions about user penetration and average transaction costs, the bank estimates that the broader adoption of NFT marketplace on Instagram could generate net annual revenue of up to $8 billion.

Other Internet companies are also taking steps to introduce digital assets, as eBay (EBAY), Twitter (TWTR) and Snap (SNAP) may include NFT to some extent, the note says.

The NFT market is in “hyperactive growth mode,” according to the report, the volume of transactions last year amounted to about $ 25 billion, which is about 250 times more than the total volume of $95 million observed in 2020.

Deutsche Bank says that the market opportunities for NFT are very large: the total volume of the address market (TAM) is estimated at more than $1 trillion, led by categories such as art, collectibles and gambling.