The Emergent Bitcoin NFT Ecosystem – How It Could Reach $4.5 Billion By 2025

According to a report by Galaxy Research, the Bitcoin NFT ecosystem could reach a market size of $4.5 billion by 2025. This growth is expected to continue in the coming years, with demand for the ability to store NFTs on the world’s oldest and most established blockchain increasing. The report notes that an entire infrastructure of products and services designed to cater to this growing market will be fully developed by the summer of this year.

One factor driving this growth is the success of the project called Ordinals, which launched NFT-like capability on Bitcoin in late January, allowing users to inscribe satoshis with unique data such as images and video. Despite the time-intensive and costly process, the project became an immediate success, with over 267,000 inscriptions made as of this writing.

Yuga Labs, the $4 billion company behind the Ethereum-based NFT collection Bored Ape Yacht Club, recently announced its first-ever Bitcoin-based NFT project, signaling the spread of Ordinals’ appeal to the top echelons of the established NFT ecosystem. The report predicts that Bitcoin will become the home of much rarer, “high quality” art projects, and valuable one-of-ones, while other chains like Ethereum will continue to host massive, multi-thousand piece PFP collections at much lower costs to creators.

However, the report notes that the success of the Bitcoin NFT market is contingent on the continued success of the broader NFT market. The market has struggled to recover to the all-time highs of early 2022, and NFT sales just notched their best month since the bear market kicked off, largely due to controversial trading practices on the emergent Blur NFT marketplace.

Moreover, while Bitcoin’s NFT market may look distinct from competitors, due to the cost of inscribing on the network, the report notes that it may not change the broader trend in the NFT ecosystem, which is a race to zero on royalties or complete non-enforcement. This could be problematic for creators who lack other sources of revenue.

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