In January of this year, the Ordinals protocol was introduced, enabling the creation of NFTs on the Bitcoin network. Analysts at Galaxy Digital predict that the capitalization of Bitcoin-based NFTs will skyrocket to $4.5 billion by 2025.
Ordinals allows users to store various types of data, including images, PDFs, audio, and video, in a single Satoshi, equivalent to 0.00000001 BTC.
According to Galaxy Digital analysts, the potential of NFTs in the Bitcoin network is immense, and their capitalization will hit $4.5 billion by 2025, given the rapid growth in the on-chain ecosystem for NFTs.
In their report, the researchers presented three possible scenarios for the development of NFTs in the Bitcoin ecosystem: basic, negative, and positive.
Analysts predict a market capitalization of $4.5 billion in the base scenario. However, if NFTs on the Bitcoin network do not receive widespread adoption by 2025, the capitalization will only reach $1.5 billion in the negative scenario.
In contrast, the positive scenario envisages NFTs in the Bitcoin network becoming a mainstream phenomenon, with their capitalization reaching $10 billion.
So far, Ordinals has issued over 250,000 NFTs, providing new opportunities and applications for the Bitcoin ecosystem.
It is worth noting that user interest in NFTs is resurging, with trading volume in non-fungible tokens increasing by 117% to over $2 billion in February of this year.