Talking about NFTs stored on the Bitcoin Blockchain is something that, until recently, seemed impossible. For bitcoiners it was blasphemy. However, a new protocol called Ordinals has arrived to change history and it is giving a lot to talk about. For example, for the financial services firm Galaxy Digital there is a lot of potential.
If anything, the new Ordinals protocol was launched on January 21, 2023, when software engineer Casey Rodarmor released the protocol on the Bitcoin mainnet. Ordinals itself allows digital artifacts such as images, text, programs, and even video games to be written directly to the Bitcoin Blockchain.
In other words, Ordinals are non-fungible tokens that are stored directly on the Bitcoin Blockchain. Being the first native NFT of the network.
To elaborate it, it has taken advantage of the Taproot update, which was carried out at the end of 2021. Facilitating the adhesion of Smart Contracts in the Bitcoin Blockchain.
In fact, on February 28, the firm behind the Bored Ape Yacht Club announced a Bitcoin-based NFT project dubbed “TwelveFold” in a notable acknowledgment of the Ordinals movement.
Galaxy Digital Analysts Believe Bitcoin Ordinals Have Great Potential
«Although there are notable differences between Satoshi coding and actual NFTs, it’s fair to say that the Bitcoin network has its own ecosystem for NFTs, and their use is skyrocketing.».
Thus, billionaire Mike Novogratz’s investment firm, Galaxy Digital (GLXY), predicts that the market capitalization of Bitcoin NFTs could reach $4.5 billion by 2025. Or $10 billion in a bullish scenario.
Specifically, in a report, Galaxy researchers analyzed the potential growth of Bitcoin NFTs and made estimates.”Conservatively based on the current size of the Ethereum NFT market» and its growth rate in recent years.
Basically, the report provided three market cap predictions. Based on company analysis, covering bear, base and bull case scenarios.
- Bitcoin NFTs can still reach a market capitalization of $1.5 billion based on the current level of interest and supporting infrastructure.
- The $4.5 billion projection is also based on the “rapid development in enrollment awareness along with market infrastructure.”
- The Bitcoin NFT market could reach around $10 billion if it offers strong competition to Ethereum NFTs and provides unique use cases.
Indeed, so far, as noted on the official Ordinals website, 779,273 blocks have already been added.
Finally, analysts believe that thanks to this project, new opportunities and applications are opened for the Bitcoin ecosystem. Is interest returning? Leave your opinion in the comment box.
I say goodbye with this phrase from Reid Hoffman: «All human beings are entrepreneurs. Not because they have to create companies, but because the will to create is encoded in human DNA.».
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