In a “base case” scenario, Galaxy Digital’s research unit has tipped Bitcoin’s burgeoning non-fungible token (NFT) market to reach a market capitalization of $4.5 billion by March 2025.
Bitcoin NFTs, or ordinals, have garnered a significant amount of attention since the Ordinals protocol launched in late January, allowing users to enroll data such as images, PDFs, videos, and audio into individual satoshis, or sats. , each of which represents 0.00000001 Bitcoin (BTC).
NFT giants like Yuga Labs have even jumped on the hype. On February 28, the $4 billion firm behind the Bored Ape Yacht Club announced a Bitcoin-based NFT project dubbed “TwelveFold,” marking a notable form of acknowledgment of the Ordinals movement.
In a new report published in March. On Feb. 3, Galaxy researchers analyzed the potential growth of Bitcoin NFTs and made estimates “conservatively based on the current size of the Ethereum NFT market” and its growth rate in recent years.
“While there are notable differences between signups and NFTs, it is fair to say that a native on-chain ecosystem for Bitcoin NFTs has emerged in a way that has never been possible before, and usage has skyrocketed.”
The report provided three different market capitalization predictions based on company analysis, covering bear case, base case, and bull case scenarios.
Looking at the Galaxy benchmark analysis, the report highlighted that if Bitcoin NFTs can “spread into mainstream NFT culture like PFPs (profile pictures), memes, and utility projects,” the market cap should rise to $4.5 billion.
The researchers also noted that the $4.5 billion projection is also based on the “rapid development in enrollment awareness coupled with the marketplace/wallet infrastructure already available today.”
Fantastic research work @intangiblecoins in @galaxyhq on the rise of Bitcoin ordinals:
– $4.5B base case market
– Help with Bitcoin fee market
– Increase design space for smart contracts.read more here
—Dan Held (@danheld) March 3, 2023
In a bearish case, where Bitcoin NFTs don’t sneak into the mainstream NFT market and take market share away from Ethereum, Galaxy estimated that Bitcoin NFTs can still reach a market capitalization of $1.5 billion according to the current level of interest and the supporting infrastructure. .
Related: Total Crypto Market Cap Takes a Hit Amid Silvergate Bank Crisis
On the bright side of things, Galaxy researchers estimate that the Bitcoin NFT market could reach around $10 billion if it succeeds in providing strong competition to Ethereum NFTs, while also providing unique use cases.
At the time of reporting, more than 250,000 ordinals have hit the market and, highlighting the importance and utility of Bitcoin NFTs, the researchers noted that:
“The addition of sizable data storage with strong availability guarantees opens up a variety of use cases, many of which are just beginning to be explored, including new types of decentralized software or bitcoin scaling techniques. However, even the NFT use case alone has the potential to dramatically expand the scope of Bitcoin’s cultural impact.”
The Dark Age of Bitcoin is over
Fun is back on the menu, guys. pic.twitter.com/ybk5NKObmB
— Eric Wall ♂️ Root Wizard #2 (@ercwl) March 3, 2023
