The German Deutsche Bank believes that the use of NFTs on Instagram will increase user confidence in collectible tokens.
A recent report from Deutsche Bank suggests that NFTs could go mainstream thanks to support from Meta. The initiative of the owner of the social network can lower the barrier to entry into the NFT market. The authors of the report clarify: the provision of non-fungible tokens to a multi-million audience can lead to a reboot of the entire market:
“Instagram will simplify the process of buying and selling NFTs, thereby lowering the barrier to entry,” the bank said, adding that the platform’s strong global brand recognition “will legitimize NFTs and help increase consumer confidence.”
Based on NFT market data, the bank believes that the widespread deployment of Instagram’s NFT marketplace could generate up to $8 billion in annual net income for Meta’s shareholders.
The document says that more companies are taking steps to implement digital tools. Among the tech giants, NFTs are already using eBay, Twitter, and Snap. The authors of the Deutsche Bank report argue that the NFT market is currently in “hypergrowth mode.” Last year, the volume of transactions with non-fungible tokens amounted to about $25 billion, which is about 250 times more than in 2020.
Deutsche Bank says the market opportunity for NFTs is very large, with the total addressable market (TAM) valued at more than $1 trillion, including art, collectibles and games.
Last week, Meta CEO Mark Zuckerberg stated that the company is “working on bringing NFT to Instagram soon. Back in late 2021, Instagram director Adam Mosseri said the platform was interested in hosting NFT-related content and attracting collector token creators.
