In a “base case” scenario, Galaxy Digital’s research department predicts that the booming Bitcoin non-fungible token (NFT) market will reach a market capitalization of $4.5 billion by March 2025.
Bitcoin NFT or Ordinals have attracted considerable attention from The Ordinals protocol launched at the end of Januarywhich allows users to enter data such as images, PDF files, video and audio into individual satoshis or sats, each representing 0.00000001 Bitcoin (BTC).
NFT giants like Yuga Labs have even gotten in on the hype. On February 28, the $4 billion firm behind Bored Ape Yacht Club announced NFT project based on Bitcoin called “TwelveFold”, noting a remarkable shape of recognizing the movement of ordinals.
In a new report published on March. 3, Galaxy researchers analyzed the potential growth of Bitcoin NFT and made estimates “conservatively based on the current size of Ethereum’s NFT market” and its growth rate over the past few years.
“While there are notable differences between tokens and NFTs, it’s fair to say that the native on-chain ecosystem for NFTs has emerged on Bitcoin in a way never before possible, and its use is exploding.”
The report provided three different market cap projections based on the firm’s analysis, covering bearish, mainstream and bullish scenarios.
Looking at Galaxy’s core analysis, the report outlines that if Bitcoin NFTs can “expand to mainstream NFT culture like PFP [Profile Pictures]memes and utility projects,” the market cap should increase to $4.5 billion.
The researchers also note that the $4.5 billion forecast is also based on “the rapid development of caption awareness combined with the market/portfolio infrastructure already in place [being] today.”
A fantastic study of @intangible coins at @galaxyhq on the rise of Bitcoin Ordinals:
– $4.5 billion core market
– Bitcoin fee market support
– Increase design space for smart contracts
Read more here
— Dan Held (@danheld) March 3, 2023
In a bear case where Bitcoin NFTs do not infiltrate the mainstream NFT market and take market share away from Ethereum, Galaxy estimated that Bitcoin NFTs could still reach a market cap of $1.5 billion based on the current level of interest and supporting infrastructure.
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On the upside, Galaxy researchers estimate that the Bitcoin NFT market could reach around $10 billion if it manages to provide strong competition to Ethereum NFTs while also providing unique use cases.
At the time of the report, more than 250,000 Ordinals had appeared in the market, and highlighting the importance and utility of Bitcoin NFTs, the researchers note that:
“Adding significant data storage with strong availability guarantees opens up a variety of use cases, many of which are just beginning to be explored, including things like new types of decentralized software or Bitcoin scaling techniques.” Even just the NFT use case, however, has the potential to dramatically expand the scope of Bitcoin’s cultural impact.”
Bitcoin’s dark ages are over
Fun is back on the menu guys pic.twitter.com/ybk5NKObmB
— Eric Wahl ♂️ Taproot Wizard #2 (@ercwl) March 3, 2023
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