Galaxy’s valuation is based on Bitcoin NFTs, the infrastructure of the currency market, and the potential to take market share away from Ethereum.
In a “base case” scenario, Galaxy Digital’s research department projected that the Bitcoin non-fungible token (NFT) market would reach a market cap of $4.5 billion by March 2025.
Bitcoin NFTs, or Ordinals, have received a lot of attention since the launch of the Ordinals protocol in late January, which allows users to store data such as images, PDFs, videos and audio in individual satoshis – each worth 0 ,00000001 Bitcoin.
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Even NFT giants like Yoga Labs jumped on the hype. On February 28, the $4 billion firm behind the Fat Monkey Yacht Club announced a Bitcoin-based NFT project to recognize the movement of the Ordinals, called the Twelve Layers.
In a new report published on March 3, Galaxy researchers analyzed the potential growth of Bitcoin NFTs, estimating prices “conservatively based on the current size of the Ethereum NFT market and growth rates over the past few years.”
“While there are significant differences between notes and NFTs, the native on-chain ecosystem for NFTs is unprecedented in Bitcoin, and it’s fair to say that its use has exploded.”
The report, based on the firm’s analysis, predicted three market caps that include bear, base and bull case scenarios.
Looking at Galaxy’s core analysis, the report indicated that if Bitcoin NFTs “expand into the mainstream of NFT culture such as PFPs [Profile Pictures], memes and utility projects,” the market cap should increase to $4.5 billion.
The researchers also noted that the $4.5 billion project is based on “the rapid development of the understanding of writing in combination with market/wallet infrastructure.”
In a bearish scenario, Bitcoin NFTs are not part of the mainstream NFT market and are a market share away from Ethereum, and Galaxy estimates that Bitcoin NFTs could reach a market cap of $1.5 billion with the current level of interest and infrastructure support . .
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Galaxy researchers estimate that the Bitcoin NFT market could reach around $10 billion if it gives strong competition to Ethereum NFTs.
More than 250,000 Ordinals entered the market during the reporting period. Emphasizing the importance and utility of Bitcoin NFTs, researchers noted:
“Using data storage with insurance opens up a variety of use cases, many of which are just beginning to explore things like decentralized software or Bitcoin scaling techniques. Even NFT use cases allow for a dramatic expansion of Bitcoin’s cultural impact.”
