Galaxy Digital believes that the Bitcoin NFT market could reach $4.5 billion by 2025. This shows that the market is expected to continue growing in the coming years as new products and services get released to the market by different companies. Moreover, there could be a new trend that would take away some market share from Ethereum (ETH) and other blockchain networks.
Galaxy Digital Believes BTC NFT Market Could Hit $4.5B by 2025
The Bitcoin NFT market could reach a new high in the future by reaching as much as $4.5 billion in market capitalization in the next few years. Let’s not forget that the crypto market started this year with a new NFT trend linked to Bitcoin (BTC) and NFTs. Ordinals protocol was launched early this year and it allowed users to transfer data into BTC transfers worth 0.00000001 BTC.
Some of the most popular NFT projects, including Yuga Labs, have been working on new products based on Bitcoin NFTs. Yuga Labs is the company that created one of the most popular NFT collections called Bored Ape Yacht Club. The new project is known as TwelveFold and it is just one of the first companies to get a place in the new Ordinals market.
According to Galaxy Digital, there are key differences between inscriptions and NFTs. However, the NFT usage on top of Bitcoin has been growing. Furthermore, they mentioned that these inscriptions expand Bitcoin’s design to add new features and use cases that could be monetized as well.
On that matter, Galaxy Digital published the following:
“Inscriptions significantly expand the design space for Bitcoin. 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.”
But can this have a positive effect on Bitcoin’s price? As per the report released by Galaxy Digital, new use cases will drive growing interest and adoption for Bitcoin as well. That means that this could enhance the likelihood of additional BTC adoption, something that could have a positive impact on Bitcoin’s price.
Another thing that has been mentioned in the report is related to Bitcoin’s security and infrastructure in terms of fees. As per the explanation given by Galaxy Digital, miners will also see increased fee revenue from inscriptions on Bitcoin blocks. These blocks will be processed and inscriptions will have to pay fees as well.
These new fees could help the Bitcoin network to shift miners’ revenue from block rewards to mining fees for transactions processed, incentivizing miners to remain active and protect Bitcoin’s network despite the halvings.
Bitcoin Price Evolution in Recent Years
In recent years, Bitcoin has experienced large volatility in its price. This could be seen with BTC reaching an all-time high of $69,000 in November 2021 and moving below $16,000 for a short period of time at the end of 2022. This is just the main example of how Bitcoin’s price could fluctuate over different periods of time.
At the time of writing this article, Bitcoin is being traded at close to $22,400 and it has a market capitalization of $431 billion. But could we see BTC moving higher in the future thanks to Bitcoin NFTs? This could be possible if there is a sustained demand for BTC thanks to these NFTs reaching a larger part of the crypto community.