What happened
Today's rally in crypto markets has taken many investors by surprise, given the "good news is bad news" reality we're now seeing play out. Last week's strong jobs numbers indicated to investors that the Federal Reserve could be less likely to take its foot off the gas pedal when it comes to rate hikes. Nonetheless, equity and crypto markets have surged higher, with the crypto sector up 3.8% in aggregate over the past 24 hours, as of 10:15 a.m. ET on Monday.
However, one cryptocurrency that has not-so-quietly moved into a top-30 spot in the crypto market cap rankings is Flow (FLOW -1.29%). This crypto project linked to non-fungible tokens (NFTs) has surged 13.3% over the past 24 hours as of 10:15 a.m. ET this morning. Over the past week, this token's performance is even more notable, with gains of approximately 50% over this time frame.
The key catalyst driving Flow higher is news that its blockchain technology and Dapper Wallet product will play an integral role in Meta's move into the NFT space. Instagram's photo-sharing application will now support posting of NFTs using the Flow blockchain, providing a big boost for this project that was designed from the start to revolutionize the NFT space.
So what
Flow's blockchain technology appears to have caught the attention of Meta's upper brass, with this purpose-built NFT platform getting the nod to be used in the company's impressive NFT rollout. Reportedly, this international NFT expansion to more than 100 countries will enable users from around the world to post their non-fungible tokens minted on the Flow blockchain.
Dapper Labs, the company behind the Flow blockchain, is well known for its portfolio of top NFT projects. Whether it's CryptoKitties, NBA Top Shot, or UFC Strike, NFT investors have long sought out Flow's collectibles, given this project's first-mover status in many sports-related collectible NFTs. Instagram appears to be partnering with Flow given its position in what could be a massive market over the long term.
Now what
How successful Instagram's foray into the world of NFTs will be is something that will be determined over time. But the vote of confidence that Flow investors received by this integration is noteworthy. From a technological standpoint, there's a lot investors have to cheer about with this partnership.
Key metrics investors should watch from here are NFT transaction volumes on Flow's blockchain, as well as user growth and adoption over time. Right now, Flow is one token with some serious momentum. Accordingly, should this broad-based rally continue, this is one project with outsize potential, at least in the near term.
