Flow crypto rises as Meta moves into NFTs
What happened
This week, corporate adoption of crypto has been in focus, with Meta platforms (META) subsidiary Instagram is greatly expanding its NFT offerings. Instagram now officially supports NFTs in 100 countries, with Flow (FLOW) blockchain provides the back-end infrastructure behind this endeavour. Consequently, Flow has seen an incredible surge in interest in recent days. In fact, as of 10 a.m. ET, this token had rocketed 45% higher in just 24 hours.
Flow, a Layer-1 network that already supports popular NFT projects such as NBA Top Shot and CryptoKitties, will have its NFTs supported in this Instagram rollout. And Flow’s Dapper Wallet product is one of two wallets accepted for use on this platform.
So what
Meta’s move into less conventional but fast-growing segments of the tech market has raised eyebrows. Aside from the social media giant’s name change and shift in focus to the metaverse, it’s clear that the company is looking beyond its current operations towards “growth” areas of the market worth dominating. The fact that NFTs have been chosen as a focal point is noteworthy for investors.
Now, while Ethereum and Polygon NFTs have already been featured on Instagram’s NFT Project via a May pilot, and Solana NFTs are expected to be added at some point, Flow’s inclusion provides a vote of confidence for this project’s underlying blockchain technology as well as its NFTs. Investors in Flow have reason to cheer about this rollout, which has been met with serious enthusiasm so far.
What now
It is important to keep this recent rally for Flow in context. In fact, the one-month chart of Flow crypto looks attractive. But when investors zoom out, this cryptocurrency’s long-term performance has been dismal, with the token down more than 90% from its peak about a year ago.
That said, when it comes to cryptos that look to consolidate and form a base at these lower levels, Flow is a project that is starting to look enticing. This Instagram partnership could provide the kind of growth investors had hoped for in the past. And given the NFT projects Flow already supports, this partnership could take Flow to the next level – at least that’s what the bulls are betting on right now.
Randi Zuckerberg, a former director of marketing development and spokeswoman for Facebook and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Chris MacDonald holds positions in Ethereum, Meta Platforms, Inc. and Solana. The Motley Fool has positions in and recommends Ethereum, Meta Platforms, Inc., Polygon and Solana. The Motley Fool has a disclosure policy.
