Arweave Price Prediction as Instagram uses Storage Service, AR up 45% in 7 Days
AR, the native token of a relatively less-known decentralized storage service called Arweave, has gained over 45% over the past week amid the news that Meta has chosen the protocol to archive its creators' digital collectibles.
The token has outperformed the broader crypto market over the past week, registering some impressive gains despite the overall flat market. In the last 24 hours, AR’s trading volumes have increased to around $400 million as speculative traders rush to take advantage of the ongoing rally.
As of now, AR is trading around the $15.13 mark, down by 4.1% over the past day. However, considering that the coin gained over 60% yesterday, the slight correction is pretty insignificant.
The coin's 24-hour range is between $14.31 and $16, showing relatively high volatility. If the coin continues to rally, $17 will likely be tested again, and a rally to $20 could be on the way. On the other hand, if the selling pressure increases, AR will likely fall to $10, and the current gains will be erased.
Meta Selects Arweave to Archive Instagram NFTs
Instagram announced Wednesday that it plans to allow creators to mint and sell NFTs directly from the social media platform. Starting this week, a select group of creators will have access to the feature.
Subsequently, in a late Thursday tweet, Stephane Kasriel, head of commerce and financial technologies at Meta, revealed that the tech giant will use a number of major Web3 projects to offer creators a bunch of new tools to help them build their businesses, including Arweave.
"We’re rolling this out on Polygon blockchain to start. We’re also expanding the types of collectibles you can display on Instagram to include videos & adding support for Solana and Phantom. Plus new integrations with OpenSea and Arweave!" he said.
Arweave is a hard drive tool that offers blockchain-based data storage solutions. The protocol achieves this by matching people who need storage with those who have extra space, creating a decentralized network of devices that offer data storage.
Other similar Web3 projects that offer decentralized storage solutions are Filecoin and Storj. Notably, both of these projects also benefited from the news, each surging by around 15% and 10%, respectively.
Decentralized storage solutions provide scalable, cost-effective, and permanent data storage to users. Once the data is entered into these protocols, it cannot be altered. This is in contrast to centralized data solutions that are not censorship-resistant.