Bitcoin NFTs Could Value $10 Billion in ‘Bull Case’: Galaxy Research
Bitcoin NFTs were made possible after the update of the Bitcoin Ordinal inscriptions on the blockchain network. This was just the start of much more to come. Recent research from financial services and investment management firm Galaxy Digital sheds light on the future growth of Bitcoin NFTs. Galaxy Digital’s research shows that the value of Bitcoin NFTs could go up to 10 billion USD by March 2025 in the “bull case”.
Galaxy Digital released research on “Bitcoin Inscriptions and Ordinals: a new 5 trillion USD market” on Friday 3 March 2023. Broadly speaking, it determined the growth of the newly launched “frontier in Bitcoin” in the coming years. The study analyzed the possible future growth of non-fungible tokens on Bitcoin. The estimated growth of the newly emerging market was calculated considering the existing market size of Ethereum’s NFTs and their past growth rate.
Future market value estimation of Bitcoin NFTs will be proof of its growth and acceptance. And the research finds that the market value of these NFTs would not be insignificant. The estimate considered three different cases according to the market condition – bear, base and bull case.
According to Galaxy Research, Bitcoin NFTs will have a market cap of US$1.5 billion despite the market’s bearish sentiment. If conditions remain neutral, the market value in such a starting point will rise to USD 4.5 billion. On the bright side, if there is a bull run, the estimated market value of Bitcoin NFTs could reach 10 billion USD.
Big differences between Bitcoin and Ethereum NFT
Despite its late entry into the crypto industry after Bitcoin (BTC), Ethereum (ETH) brought certain unique blockchain features and use cases. The Ethereum blockchain network takes most of the credit for the rise of non-funbile tokens. With the Ordinal inscriptions, Bitcoin could also produce digital assets over its blockchain. The difference between Ordinal inscriptions and NFTs remains there.
For example, Ethereum-based NFTs offer tools and features, while Bitcoin NFTs have none. While the file size limit for tokens on both networks is also different. Bitcoin NFTs can be up to 4MB, and Ethereum NFTs can go to 100MB.
As the oldest blockchain network, the “history of NFTs on Bitcoin” is also relatively older than any other. The report suggests that it took almost the same amount of time as the age of the blockchain network.
Ordinals Upgrade is a turning point for Bitcoin
Bitcoin NFT’s growth is also extraordinary. After its launch in the later part of January 2023, Bitcoin Ordinal inscriptions reportedly crossed up to 250,000 NFTs.
The Ordinals project launched on Bitcoin brought NFT-like capabilities to the network. It allows entering the smallest unit of BTC, the sathoshi, with images and video-like unique data. One Sathoshi represents 0.00000001 BTC.
The process of inscription can be time-consuming and costly, which makes it the reason for its widespread success. As estimated in the Galaxy report, the same 10,000 Bored Ape Yacht Club (BAYC) NFTs on Bitcoin’s blockchain would cost around $229,000 USD.
Ordinary inscriptions are only going to increase the use of the Bitcoin network. The blockchain will now have more use cases in addition to facilitating BTC transactions. Looking for the growth potential, many prominent players, such as Yuga Labs, are targeting the network to create NFTs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while graduating. A keen observer of detail, he shares his passion for writing alongside being a developer. His backend knowledge of blockchain helps him bring a unique perspective to his writing
