Sunday, December 3, 2023

Instagram’s brand recognition will legitimize NFTs: Deutsche Bank

NFTs could become widespread and mainstream through Instagram, says Deutsche Bank in its latest research report. The CEO of Meta, Mark Zuckerberg had said that the company is working on bringing non-fungible tokens to Instagram in the near term. It will launch an NFT marketplace.

Facebook and Instagram are developing a feature to allow their users to display NFTs on their profiles. Deutsche Bank highlighted that Instagram’s brand recognition will legitimize NFTs, which could erode buying hesitancy across the company’s broader audience. The German bank says NFTs have an estimated total addressable market of over $1 trillion, with examples of use cases in collectibles and gambling.

The Deutsche Bank estimates a broader rollout of an NFT marketplace on Instagram could push up to $8 billion in net annual revenue. Other internet companies are taking steps to adopt digital assets as well, such as eBay, Twitter, and Snap. They could incorporate NFTs to some extent.

The report pointed out that the NFT market is currently in hyper-growth mode. It generated around $25 billion in trading volume in 2021, a 250 times increase over the approximately $95 million total volume in 2020. Colin Fitzpatrick, founder of Animal Concerts – an NFT startup, said holders should be careful. He pointed out that the NFT community should see to it that Meta behaves fairly and doesn’t try to monopolize profits in a supposed democratic industry.

Deutsche Bank’s report is similar to Morgan Stanley’s note which stated that analysts predict the metaverse’s initial TAM in China will be around $4 trillion. It highlighted that metaverse has somewhat replaced the mobile internet with a more immersive experience. Morgan Stanley expects the metaverse TAM to be expansive and move beyond the current online consumption market.

Cryptured Team
Cryptured Team
The writers team at Cryptured.com is composed of passionate and experienced journalists who cover the latest developments in the crypto and blockchain space. They aim to provide accurate, unbiased and easy-to-understand news and information for their readers, as well as insights and analysis from industry experts. The writers team is always on the lookout for new and exciting stories that can help the general public learn more about the potential and challenges of these technologies.
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