On the 3rd of November, after Meta’s Instagram announced to offer of NFT tools for creators, the value of Polygon and Arweave increased. According to data from CoinGecko, over the past 24 hours, the value of Polygon has increased by over 14%. This value increase is because Instagram has selected the Polygon blockchain to let users mint and sell NFTs.
While the AR token of the decentralized data storage protocol Arweave has also increased by over 59% over the past 24 hours, according to data from CoinGecko. Arweave’s value increase is because Instagram has chosen it to store its creators’ NFTs. It’s been a good day for Arweave and Polygon trading.
It is the first step of Instagram, the social media giant, towards Web3, which will help it to surpass the intense competition with TikTok and YouTube. Previously, creators criticized Instagram for its lack of direct creator compensation. But now, this new step of selling NFTs on its platform could decrease the criticism from creators.
Stephane Kasriel, the head of Commerce and Fintech at Meta, said that blockchain has a role in this because it can enable entirely new business models for creators that give them more control over their work and audiences and how they monetize. Stephane said that they believe Web3 tech, like blockchain, will positively enhance the economic model for creators. He added that Instagram would allow creators to create new types of digital assets to monetize.
The reason behind choosing the Polygon blockchain for Instagram’s NFTs marketplace is its success in recent uses. Reddit used Polygon for its highly successful Collectible Avatars NFTs, which proved successful. The reason behind choosing Arweave’s blockchain is it provides decentralized storage space which can’t be tampered with.
It’s not the first step from Meta to offer Web3 features on its social media platforms, but it has done several in recent years. For example, in May, it announced let select creators display their NFTs on their Facebook and Instagram profiles.