Reports said that Galaxy Digital's research unit has tipped the burgeoning Bitcoin nonfungible token (NFT) market to hit a $4.5 billion market cap by March 2025.
It has been reported that Bitcoin NFTs, or Ordinals, have attracted a significant amount of attention since the Ordinals protocol launched in late January, enabling users to inscribe data such as images, PDFs video and audio onto individual satoshis, or sats that each represent 0.00000001 Bitcoin.
However, NFT giants such as Yuga Labs have even jumped in on the hype. On Feb. 28, the $4 billion firm behind the Bored Ape Yacht Club announced a Bitcoin-based NFT project dubbed “TwelveFold,” marking a notable form of recognition of the Ordinals movement.
The report said that Galaxy researchers analyzed the potential growth of Bitcoin NFTs and made estimations “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 inscriptions and NFTs, it’s fair to say that a native on-chain ecosystem for NFTs has emerged on Bitcoin in a way that was never before possible, and its usage has been exploding.”
Likewise, the report provided three different market cap predictions based on the firm’s analysis, covering a bear case, base case and bull case scenarios. Looking at Galaxy’s baseline analysis, the report outlined that if Bitcoin NFTs can “expand to mainstream NFT culture like PFPs [Profile Pictures], memes and utility projects,” the market capitalization should increase to $4.5 billion.
The researchers also noted that the projection of $4.5 billion is also based on the “rapid development in inscription awareness coupled with the marketplace/wallet infrastructure already [being] out today.” In a bear case, in which Bitcoin NFTs don’t creep into the mainstream NFT market and pry market share away from Ethereum, Galaxy estimated that Bitcoin NFTs can still reach a market cap of $1.5 billion based on the current level of interest and supporting infrastructure.
Thus, the researchers noted:
“The addition of sizeable data storage with strong availability assurances opens up a variety of use cases, many of which are only beginning to be explored, including things like new types of decentralized software or bitcoin scaling techniques. Even the NFT use-case alone, though, has the potential to dramatically widen the scope of Bitcoin’s cultural impact.”