Instagram will easily overtake OpenSea as the world’s biggest NFT marketplace, Deutsche Bank has predicted.
Mark Zuckerberg’s photo-sharing app has confirmed that it plans to add crypto collectibles over the coming months.
Analysts believe this could attract millions of new consumers to the NFT space, and deliver billions of dollars in revenue for Instagram.
Deutsche Bank says Instagram is expected to have 2.2 billion monthly active users in 2023 — and based on its “conservative” base case that 2% of them would embrace digital assets, this would create an NFT user base of 44 million people on this social network alone.
This is “significantly higher” than the 1.4 million people who use OpenSea — fueling fears that the platform will lose a substantial chunk of market share.
Assuming that each of these Instagram users makes three NFT transactions per year, with a “conservative” average selling price of $250, this would result in trading volumes of $33 billion — streets ahead of OpenSea on $23 billion.
If just 2% of Instagram’s users start owning NFTs, that would create a user base of 44 million — “significantly higher” than OpenSea’s 1.4 million.