In a “base case” situation, Galaxy Digital’s analysis unit has tipped the burgeoning Bitcoin nonfungible token (NFT) market to hit a $4.5 billion market cap by March 2025.

Bitcoin NFTs, or Ordinals, have attracted important consideration for the reason that Ordinals protocol launched in late January, enabling customers to inscribe information corresponding to photos, PDFs, video and audio onto particular person satoshis — every representing 0.00000001 Bitcoin (BTC).

NFT giants corresponding to Yuga Labs have even jumped in on the hype. On Feb. 28, the $4 billion agency behind the Bored Ape Yacht Membership introduced a Bitcoin-based NFT project dubbed “TwelveFold” in a notable recognition of the Ordinals movement.

In a brand new report published on March 3, Galaxy researchers analyzed the potential development of Bitcoin NFTs, making estimations “conservatively based mostly on the present measurement of Ethereum’s NFT market” and its development fee over the previous few years.

“Whereas there are notable variations between inscriptions and NFTs, it’s truthful to say {that a} native on-chain ecosystem for NFTs has emerged on Bitcoin in a method that was by no means earlier than potential, and its utilization has been exploding.”

The report offered three market cap predictions based mostly on the agency’s evaluation, masking bear, base and bull case eventualities.

Taking a look at Galaxy’s baseline evaluation, the report outlined that if Bitcoin NFTs can “increase to mainstream NFT tradition like PFPs [Profile Pictures], memes and utility tasks,” the market capitalization ought to improve to $4.5 billion.

The researchers additionally famous that the projection of $4.5 billion can be based mostly on the “speedy improvement in inscription consciousness coupled with {the marketplace}/pockets infrastructure already out right now.”

In a bear case, wherein Bitcoin NFTs don’t creep into the mainstream NFT market and pry market share away from Ethereum, Galaxy estimated that Bitcoin NFTs can nonetheless attain a market cap of $1.5 billion based mostly on the present degree of curiosity and supporting infrastructure.

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On the bullish aspect of issues, Galaxy researchers estimate that the Bitcoin NFT market might attain round $10 billion if it supplies sturdy competitors to Ethereum NFTs whereas offering distinctive use circumstances.

Estimated Bitcoin NFT market cap. Supply: Galaxy Digital

On the time of the report, greater than 250,000 Ordinals have hit the market. Highlighting the importance and utility of Bitcoin NFTs, the researchers famous that:

“The addition of sizeable information storage with sturdy availability assurances opens up a wide range of use circumstances, a lot of that are solely starting to be explored, together with issues like new forms of decentralized software program or Bitcoin scaling strategies. Even the NFT use case alone, although, has the potential to dramatically widen the scope of Bitcoin’s cultural influence.”