As Instagram moves into the world of web3, many are wondering if the platform will overtake OpenSea as the number one NFT marketplace. In March 2022, Mark Zuckerberg announced his plans to turn Instagram into an NFT marketplace. Six months later, Meta unveiled its NFT roadmap, and by August, the company had rolled out NFT features to users in 100 countries. Their first NFT drop happened in November, featuring artist Driftershoots collection sold out in seconds and same thing happened as they did their second drop with Vinnie Hager.
This is big news for Instagram, as it shows that they have a strong market for NFTs among their user base. Gen Z, a generation that is known for its virtual identity and interest in NFTs, with Gen Zers switching away from Instagram to TikTok, NFTs could give the platform new life among this demographic. This could also bring in a new source of revenue for Meta.
In 2023, Instagram is expected to have 2.2 billion monthly active users. If just 2% of them embrace digital assets, that would create an NFT user base of 44 million people on Instagram alone, surpassing OpenSea’s current user base of 1.4 million. Assuming each Instagram user makes three NFT transactions per year at an average selling price of $250, that would result in trading volumes of $33 billion compared to OpenSea’s $23 billion. This would benefit not only Meta, but also Apple, which wants gas fees to be paid through a system that takes a 30% cut of in-app purchases for applications on its devices. This could be a blow to iPhone users who want to transfer NFTs to other wallets or gift them to friends and family.
Overall, it looks like Instagram is well-positioned to become a major player in the NFT market. With their strong user base and Gen Z’s interest in virtual identity and NFTs, the platform could see significant growth and revenue in the coming years. Only time will tell if they can truly surpass OpenSea as the top NFT marketplace.
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