According to analysts of the consulting giant Fool, the moves by former Facebook, Meta, towards NFTs will be a historic catalyst for the altcoin projects it has partnered with.
Meta’s steps are turning eyes to these altcoin projects
In May 2022, Meta announced that it would integrate NFTs on social media sites Facebook and Instagram. The company, which is also behind WhatsApp, allows its users to showcase their NFT-based digital collections. But according to a new announcement, it is adding additional features that will turn Instagram into an NFT marketplace.
The details show that creators will be able to list NFTs available for purchase in their profiles, similar to other major NFT platforms like OpenSea or SuperRare. In addition, a tip option will be created that allows users to send money to their favorite creators. All this makes it possible for user profiles to seamlessly receive payments via cryptocurrency. It will also be sufficient to simply connect a digital wallet to send it.
Soon you’ll be able to make and sell #NFTs on @instagram, starting with @0xPolygon. You can also now connect to @solana and Phantom wallet, and see information about @opensea collection: https://t.co/aH8035Tk8n
Comment your #NFT below 👇 pic.twitter.com/dvHau9n9Yu
— Meta (@Meta) November 2, 2022
The decision to enable full NFT functionality rather than a place to showcase digital collectibles as originally planned is a move in the right direction for Meta. You may be thinking that this could mean good news for Meta stock. But if we dig a little deeper, according to Fool analysts, investors will find the real opportunity.
Which Ethereum is next?
Meta announced that Polygon will be the primary Blockchain supporting NFT transactions. The more real usage space a crypto invests, the additional support for its price. We may see an increase in demand for MATIC as Polygon becomes the primary network for Instagram NFTs.
Meta chose Polygon for several reasons. First, Polygon operations are extremely fast in processing. Ethereum is distinguished by a few features that can become clogged with traffic and slow speeds. Polygon, for example, boasts impressive speeds of up to 7,000 operations per second. This high efficiency is crucial to ensure Instagram users have a smooth experience.
Additionally, Polygon has some of the lowest transaction fees of any Blockchain. This means that sales and purchases will not require any extra payment from users. This is something that bothers Ethereum during peak usage. Finally, Blockchain is extremely environmentally friendly. Blockchain is so energy efficient that there are already plans for it to become carbon neutral and eventually carbon negative.
Polygon’s premier partnerships
The functionality that Polygon offers is slowly becoming the best kept secret in the Blockchain world. Throughout 2022, multiple companies including Disney, Coca-Cola, and now Meta have partnered with Polygon. However, the MATIC price fell more than 60% from the ATH level despite the partnerships. Despite this, it outperformed all its competitors in terms of success. If companies continue to realize what they have to offer in the coming years, it seems more likely to return to all-time highs as demand rises.
Analysts are also watching this overlooked altcoin project closely.
After this news, there are players operating in the storage field such as Arweave (AR). Similar to Polygon, investors can purchase AR tokens to invest directly in Arweave. Like Polygon, there are a few features that make Arweave effortless to be part of Instagram’s new NFT functionality. The first is perhaps the persistence of Arweave. All data stored in Arweave stays there forever.
Additionally, Arweave’s Blockchain capacity is almost endless. Most importantly, because Arweave uses a Blockchain and is decentralized in nature, user data remains anonymous, censorship-proof and immutable. The decision to use Arweave is one of the first examples of a big tech company like Meta tapping into its potential. Yet in the blockchain world, Arweave has been recognized as an innovator for some time. Cryptocurrencies such as Cosmos, Polkadot, Avalanche, NEAR, Solana, and The Graph all use Arweave to store transaction data. In doing so, it helps to make their own webs less bulky and more fluid.
Roadmaps of altcoin projects
Polygon and Arweave, cryptocoin.com As you follow, it is in decline after the FTX crisis. Polygon rose about 40% before the crisis. Arweave, on the other hand, went up to $17 a piece. However, it has since dwindled to around $10. However, despite these gains, Polygon is still well below its all-time high and Arweave is down almost 90% from its peak of around $85.
According to analysts, the value these two cryptocurrencies provide is not adequately reflected in their prices, and their future potential is certainly not priced appropriately. We can say that they have proven themselves so far, especially considering that these two networks have partnered with some of the world’s leading companies.
