The Ordinals protocol, which allows the issuance of NFTs on the Bitcoin network, was launched in January of this year. According to analysts at Galaxy Digital, the capitalization of Bitcoin-based NFTs will reach $4.5 billion by 2025.
Ordinals allows users to encode various data, such as images, PDFs, audio and video, as a single Satoshi, which is 0.00000001 BTC. Galaxy Digital analysts believe that NFTs in the Bitcoin network have great potential, and by 2025 their capitalization will reach $4.5 billion.
“Although there are notable differences between Satoshi encoding and real NFTs, it is fair to say that the Bitcoin network has its own on-chain ecosystem for NFTs, and its use is growing rapidly,” the analysts write.
In their report, the researchers presented three possible paths for the development of NFT in the Bitcoin ecosystem: basic, negative, and positive. It is in the case of the base scenario that analysts predict a market capitalization of $4.5 billion. A negative scenario will happen if NFTs in the Bitcoin network do not receive large-scale adoption by 2025. In this case, the capitalization will reach only $1.5 billion. In the positive scenario, on the contrary, NFTs in the Bitcoin network will become a mass phenomenon, and their capitalization will reach $10 billion.
To date, over 250,000 NFTs have been issued with Ordinals. Analysts believe that thanks to this project, new opportunities and applications are opening up for the Bitcoin ecosystem.
Recall that user interest in NFT is returning. So, in February of this year, the volume of trading in non-fungible tokens increased by 117% and exceeded $2 billion.
