Galaxy tips Bitcoin NFT market to hit $4.5B by 2025

In a “base case” scenario, research unit Galaxy Digital tipped the Bitcoin nonfungible token (NFT) market to grow to $4.5 billion by March 2025.

Bitcoin NFTs, or Ordinals, have attracted a significant amount of attention since the Ordinals protocol was opened at the end of January, enabling users to inscribe data such as images, PDFs, video and audio into individual satoshis, or sats that each represent 0.00000001 Bitcoin (BTC).

NFT giants such as Yuga Labs are even jumping on the hype. On February 28, the $4 billion company behind Bosen Ape Yacht Club announced a Bitcoin-based NFT project dubbed “TwelveFold,” marking a form of recognition of the Ordinals movement.

In a new report published in March. 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 the growth rate over the past few years.

“While there is an important difference between inscriptions and NFTs, it is fair to say that the native on-chain ecosystem for NFTs has emerged in Bitcoin in a way that was never possible before, and its use has exploded.”

The report provides three different market cap predictions based on company analysis, including bear case, base case and bull case scenarios.

Looking at Galaxy’s baseline analysis, the report states that Bitcoin NFTs can “develop a mainstream NFT culture like PFPs.” [Profile Pictures]memes and utility projects,” the market capitalization should increase to $4.5 billion.

The researcher also noted that the $4.5 billion projection is also based on “rapid development in inscription awareness coupled with existing market/wallet infrastructure. [being] out today.”

In the bear case, in which Bitcoin NFTs do not infiltrate the mainstream NFT market and pry market share away from Ethereum, Galaxy estimates that Bitcoin NFTs can still reach a market cap of $1.5 billion based on current interest rates and supporting infrastructure. .

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On the bullish side of it, 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 a unique use case.

Estimated market capitalization of Bitcoin NFT: Galaxy Digital

At the time of the report, more than 250,000 Ordinals had reached the market, and highlighting the importance and utility of Bitcoin NFTs, the researchers noted that:

“The addition of large enough data storage with a strong guarantee of availability opens up a wide range of use cases, many of which are just beginning to be explored, including new types of decentralized software or bitcoin scaling techniques. Even NFT use cases alone, have the potential to expand the scope of cultural influence Bitcoin.