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 attracted a significant amount of attention since the The Ordinals protocol was launched at the end of Januaryallowing users to enroll data such as images, PDFs, video, and audio into individual satoshis, or sats, each representing 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 nicknamed "TwelveFold", marking a notable form of recognition 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 over the past few years.
โWhile 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.โ
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 NFT can โspread into mainstream NFT culture like PFPs [Profile Pictures]memes and utility projectsโ, the market capitalization 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 along with the marketplace/wallet infrastructure that already exists." [being] out 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
โDan 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 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:
โThe 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
โ Eric Wall โโ๏ธ Senior Assistant #2 (@ercwl) March 3, 2023
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