Galaxy Digital predicts that the Bitcoin NFT market will reach $4.5B by 2025

The research unit at Galaxy Digital has predicted that the Bitcoin non-fungible token (NFT) market will have a market capitalization of $4.5 billion by March 2025. The prediction comes amid the rising interest in Bitcoin NFTs, known as Ordinals.

Bitcoin NFT market to hit $4.5B valuation by 2025

Bitcoin NFTs have gained increased attention since the Ordinals platform was launched in late January. The platform allows users to inscribe data like audio, video, PDFs, and images in individual satoshis, the smallest unit of Bitcoin.

In its new research, Galaxy analyzed the projected growth of Bitcoin NFTs by assessing the current size of the Ethereum NFT market and the growth rate achieved in recent years. The report noted that Bitcoin NFTs were an area that was rapidly growing.

“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,” Galaxy researchers said.

The researchers noted that if Bitcoin NFTs like memes, utility projects, and profile pictures (PFPs) could become mainstream, the market capitalization could rise to $4.5 billion. The researchers added that the $4.5 billion projection was based on the rapid growth of inscription awareness and the existing infrastructure supporting growth.

On the downside, the researchers admitted that there was a possibility that Bitcoin NFTs might not be as competitive as Ethereum NFTs. In this case, these NFTs would still have a market cap of $1.5 billion based on the existing infrastructure and the current attention.

On the upside, the Bitcoin NFT market could receive much interest and outperform the existing NFT markets, which will hit a $10 billion valuation. However, this bullish side will only happen if Bitcoin NFTs offer better competition against Ethereum NFTs and have better use cases.

“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,” the researchers added.

Bitcoin NFT market is growing

The Galaxy researchers have released this report at a time when the Bitcoin NFT market is exploding. When the report was published, over 250,000 Ordinals had entered the market, indicating that this area is attracting much interest.

Yuga Labs, one of the largest players in the NFT industry, has also joined in the hype. Towards the end of last month, the Bored Ape Yacht Club creator announced the release of a Bitcoin NFT collection known as TwelveFold. The collection was released to recognize the growth behind Ordinals.

Bitcoin has received a major use case as a currency, as it has already been accepted as legal tender in two countries. However, the Bitcoin network has not had much success in the Web3 industry, including NFTs, gaming, and decentralized finance.