By March 2025, the market for Bitcoin nonfungible tokens (NFTs) is predicted by Galaxy Digital’s research division to reach a $4.5 billion market size in a “base case” scenario.
Since the Ordinals protocol released in late January, users have been able to engrave data like as photos, Documents, videos, and music onto individual satoshis, or sats, which each represent 0.00000001 Bitcoin. This technology is known as Bitcoin NFTs, or Ordinals.
Even NFT industry behemoths like Yuga Labs have joined the hoopla. The Bored Ape Yacht Club’s $4 billion parent company announced the launch of the “TwelveFold” Bitcoin-based NFT project on February 28. This announcement was a significant nod to the Ordinals movement.
The potential expansion of Bitcoin NFTs was examined by Galaxy researchers in a new paper released on March 3. Estimates were calculated “conservatively based on the present size of Ethereum’s NFT market” and its growth rate over the previous few years.
While inscriptions and NFTs differ significantly, it is safe to argue that Bitcoin has enabled the emergence of a native on-chain environment for NFTs, and its use has been skyrocketing.
Based on the firm’s study, the report predicted three potential market caps, spanning bear case, base case, and bull case scenarios.
If Bitcoin NFTs can “spread to mainstream NFT culture like PFPs [Profile Photographs], memes, and utility projects,” according to Galaxy’s baseline research, the market value should rise to $4.5 billion. The forecast of $4.5 billion, according to the experts, is also predicated on “the quick rise of inscription awareness paired with the marketplace/wallet infrastructure already [being] out today.”
Galaxy calculated that Bitcoin NFTs can still attain a market valuation of $1.5 billion based on the present level of demand and supporting infrastructure in the event that Bitcoin NFTs do not infiltrate the mainstream NFT industry and take market share away from Ethereum.
On the plus side, Galaxy researchers predict that the market for Bitcoin NFTs might grow to $10 billion if it can successfully compete with Ethereum NFTs while also offering distinctive use cases.
The researchers noted that: “The addition of sizeable data storage with strong availability assurances opens up a variety of use cases, many of which are only just beginning to be explored, including things like new types of decentralized software or bitcoin scaling techniques. At the time of the report, more than 250,000 Ordinals have entered the market. But, even the single NFT use-case has the potential to significantly broaden the breadth of Bitcoin’s cultural effect.