(Kitco News) - Meta, the parent company of Facebook and Instagram, revealed on Monday that select U.S.-based users will be able to connect their digital wallets and share nonfungible tokens (NFTs) on the two popular social media platforms beginning this week.
This announcement comes less than a month after first introducing a digital wallet integration as the company looks to finally start integrating cryptocurrencies across its platforms.
Meta first revealed its plans to expand into the NFT space back in May, noting that “Creators are using new technologies like NFTs to take more control over their work, their relationship with their fans, and how they can monetize.”
One of the main focuses of supporting NFTs on Facebook and Instagram will be to help bring more diversity to the world of NFT creation to help ensure that all voices in the community are represented.
“It’s critical that our early efforts in this space empower diverse voices and that underrepresented groups have access to emerging digital assets like NFTs. By building support for NFTs, we aim to improve accessibility, lower barriers to entry, and help make the NFT space more inclusive to all communities,” Meta said.
The blockchain networks currently supported by Meta include Ethereum (ETH) and Polygon (MATIC), while integrations for Solana (SOL) and Flow (FLOW) are in development. There will be no fees associated with posting or sharing digital collectibles, according to Meta.
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NFT sale volumes plummet
Meta’s announcement comes at a low point for the NFT industry as daily sale volumes on OpenSea, the world's largest nonfungible token (NFT) marketplace, have plummeted by 99% over the past four months.
Data provided by DappRadar shows that on May 1, the marketplace processed a record high $405.75 million worth of NFT transactions. That stands in stark contrast to its trading volume on Aug. 28, which came in at a paltry $5 million – a 99% drop.
OpenSea users, volume, and transactions statistics. Source: DappRadar
The drop in trade volume also coincided with declines in active users and transactions, as shown by the yellow and blue lines on the above chart. This suggests that there has been a widespread decline in interest surrounding NFTs over the past several months that overlaps with falling crypto prices.
Despite the pullback in marketplace activity, NFTs remain one of the fastest growing sectors of the crypto market and one of the best avenues to increase the adoption of blockchain technology.
Along with Meta’s rollout of NFTs on its social media platforms, this week also saw Formula One racing signal that it is looking to launch NFTs, digital collectibles and cryptocurrency payment support prior to the inaugural Las Vegas Grand Prix in 2023 by filing trademark applications with the US trademark office.
According to Coinbase CEO Brian Armstrong, the growth of NFTs is just beginning and the top U.S.-based exchange remains committed to the sector and the promise it holds.
“It’s still super early in the NFT space. We saw a big run-up last year with people trading Bored Apes and all sorts of different things that got traction. But I think that’s just the first step in a long journey of what NFTs are going to become,” Armstrong said.
