Bitcoin NFTs were made possible after updating the bitcoin ordinal inscriptions on the blockchain network. This was just the beginning of much more to come. Recent research by financial services and investment management firm Galaxy Digital sheds light on the future growth of Bitcoin NFTs. Galaxy Digital research shows that the value of Bitcoin NFTs in “bull case” could reach $10 billion by March 2025.
Galaxy Digital released a study on “Bitcoin Inscriptions and Ordinals: a new $5 billion market” on Friday, March 3, 2023. Broadly speaking, it will determine the growth of the newly launched “Frontier in Bitcoin” over the coming years. The study analyzed the possible future growth of non-fungible tokens on Bitcoin. The estimated growth of the emerging market has been calculated considering the existing Ethereum NFTs market size and its historical growth rate.
The future market cap estimate for Bitcoin NFTs will be a testament to their growth and adoption. And the research found that the market cap for these NFTs would not be insignificant. The estimate considered three distinct cases – bear, base and bull, depending on market conditions.
According to Galaxy Research, Bitcoin NFTs will reach a market cap of $1.5 billion despite the bearish market sentiment. In such a base case, if conditions remain neutral, the market cap increases to $4.5 billion. On the other hand, the estimated market cap of Bitcoin NFTs could hit $10 billion in a bull run.
Source – Galaxy Digital
Key differences between Bitcoin and Ethereum NFTs
Despite its late entry into the crypto industry after Bitcoin (BTC), Ethereum (ETH) brought certain unprecedented features and use cases to blockchain. The Ethereum blockchain network has most of the credit for the emergence of non-useless tokens. With the ordinal inscriptions, Bitcoin could also produce digital assets via its blockchain. The difference between ordinal inscriptions and NFTs remains.
For example, Ethereum-based NFTs offer utilities and features, while Bitcoin NFTs have none. The file size limit of tokens in both networks is also different. Bitcoin NFTs could be up to 4MB and Ethereum NFTs could be up to 100MB.
Source – Galaxy Digital
As the oldest blockchain network, the “History of NFTs on Bitcoin” is also relatively older than all others. The report suggests that it has lasted almost as long as the age of the blockchain network.
Source – Galaxy Digital
The ordinals upgrade is a game changer for bitcoin
The growth of Bitcoin NFTs is also exceptional. After its launch in late January 2023, Bitcoin ordinal inscriptions have reportedly exceeded as many as 250,000 NFTs.
Launched on Bitcoin, the Ordinals project brought NFT-like capabilities to the network. It allows describing the smallest unit of BTC, Sathoshi, with images and video-like unique data. One Sathoshi represents 0.00000001 BTC.
The labeling process can be time consuming and expensive and is the reason for its great 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.
Ordinal inscriptions will only increase the acceptance of the Bitcoin network. Blockchain will now have more use cases besides facilitating BTC transactions. Many prominent players such as Yuga Labs are turning to the network for NFT creation in search of growth potential.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while in college. He is a keen eye for detail and shares his passion for writing with his work as a developer. His backend knowledge of blockchain helps bring a unique perspective to his writing
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