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How Instagram could topple Opensea to become the biggest NFT marketplace


cryptoknowmics.com 09 April 2022 22:45, UTC
Reading time: ~4 m

Why Could Instagram Easily Overtake OpenSenea and Become the World's Largest NFT Market? The growing NFT market could spur an entry by Meta or a competitor. According to Deloitte, the sales of sports NFT will be worth $2 billion in 2022. OpenSea sales can reach more than $24.9 billion.  Moreover, its market share of 97% has led to questions about the size of the NFT market. The CEO of OpenSea frequently avoids the spotlight by deflecting questions about the platform's success. He even demurred when asked about the company's vision. Alternatively, Zuckerberg is pathologically humble. But despite his humility, the CEO is a proven winner. He has a laser-sharp focus on the company's priorities and isn't distracted by the turbulence in the crypto market. The NFT market is highly fragmented, so a leader can easily compete against an alternate destination. Alternate destinations can grow and accumulate sufficient supply in specific categories or specialty features with enough growth.  The success of OpenSea will drive capital into the NFT market and create more competition. Meanwhile, new buyers will flood into the ecosystem, driving up the price of the NFTs. By 2023, Instagram could have 2.2 billion monthly active users. And it is estimated that 2% of its users will adopt digital assets. That would be 44 million people, considerably larger than OpenSea's 1.4 million user base.  And these numbers are based on assumptions about the average NFT price of $150. It means that OpenSea will have substantial trouble keeping its market share. Zuckerberg mentioned that "We’re working on bringing NFTs to Instagram in the near term, but not ready to announce exactly what that’s going to be today". But there are many unanswered questions. For example, why did he not mention cryptocurrency? He has a vision for the Metaverse, and its NFTs will be one of the most popular NFTs, flooding the Metaverse with potential investors. It is not only a good sign for OpenSea, but it will make the industry more competitive.

NFT Market in 'Hypergrowth Mode'

Several internet giants are taking steps to integrate digital assets into their platforms, including Facebook, Twitter, and Snap. Deutsche Bank recently said the NFT market is in 'Hypergrowth Mode,' with transactions soaring over $2 million in 2018 and projected to reach $95 million by 2020. The largest sectors are gambling, art, and collectibles, and here's how you can get involved. The NFT Market is expected to reach $1 trillion in volume by 2023, with a compound annual growth rate of 2,500%. The growth rate is comparable to the market growth seen during recent notable events, such as the NASDAQ dot-com stocks' 456% increase over five years and the ETF for cannabis stocks' 212% increase over five months. By 2021, Instagram will generate $2 billion in revenue, about 250 times more than it did in 2020. The NFT market is already at a point where Instagram is launching a new cryptocurrency trading platform. It could be an important stepping-stone in the global adoption of cryptocurrencies. A study conducted by Deutsche Bank estimates that transaction volume will be more than $2 billion per year. In addition, the total market value will be worth $1 trillion by 2021. However, there are some challenges for the market.

Why Instagram matters in the NFT Market:

Both Facebook and Instagram have expressed an interest in the NFT market, and both have also talked about launching an NFT marketplace.  The company is also working on a prototype that will allow users to mint NFTs. It's unclear what will happen with the NFT market, however. But it's important to note that Facebook and other major companies aren't the only ones interested in the concept. Reddit and Twitter have also hinted that they'd like to make the platform available to their users. Instagram's NFT project began in December last year with David Marcus, the former CEO of Facebook's Libra / Diem stablecoin project. David Marcus, the then head of Messenger and Facebook's Diem enthusiast, left the company in December of that year. Now, the company is headed by Stephane Kasriel, a former Upwork CEO. The company's first blockchain-based token is expected to launch soon. Unlike Bitcoin, the Instagram project has no central authority, another big plus. Instagram will be a good platform to integrate NFTs into their page. The company has over 1.1 billion users and huge growth potential. But the social network also offers a lot more than a marketing platform. And it's a booming business. But Instagram is an early start for NFTs. With its asynchronous nature, you can expect that there will be a significant amount of growth for NFTs on Instagram.

Conclusion:

One of the most popular NFT Marketplaces is Open Sea, which reported $2 million in transactions over the last 30 days. But Facebook-owned Instagram is also considering becoming the next big thing. It has 1 billion registered users, and Zuckerberg has hinted that avatar clothing in the Metaverse will be minted into NFTs. The move could benefit eCommerce stores and fashion bloggers, and it will complement Facebook's ambitions to lead the virtual world.


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