- A Galaxy Research report suggests a dramatic surge in demand for storing digital assets on Bitcoin over having advantages Ethereum does not include.
- The research company expects the Bitcoin NFT market to hit a market cap of $4.5B by next year.
- Marketplaces and crypto wallets are already capitalizing on this new trend — offering support to enhance user experience on the blockchain network.
- As a result, Galaxy’s analysts believe that these Web3 platforms will fully expand to accommodate many more users by this summer.
Reasons Behind the Predicted Surge of Bitcoin NFTs
Since December 2022, more than 200k digital inscriptions have been stored on Bitcoin’s distributed ledger — comprising audio, image, text, and app files. Each inscription ties to an Ordinal as part of the process of adding assets to the Bitcoin network quickly and efficiently.
Some of the most prominent players in the Web3 industry — Yuga Labs and DeGods — hold digital assets on Bitcoin. Therefore, it’s no wonder analysts predict the blockchain network’s NFT market to reach to the stars.
Nevertheless, concerns have been rising. One notable issue against Bitcoin inscriptions includes using satoshis to reduce fungibility of Bitcoin. Some believe its “harming its use as money”. However, Galaxy’s analysts found that such fears are “overblown even under the most aggressive inscription growth projections.” According to them, it would take 50k BTC to notice a reduction in fungibility. This accounts for just 0.24% of the total BTC terminal supply.
Following on, here are some valuable differences between Bitcoin and Ethereum NFTs:
Understanding the advantages of Bitcoin NFTs — like presenting content on-chain using little storage — new wallets and marketplaces are emerging to support the user experience.
Consequently, Galaxy believes the Web3 world will see many more Bitcoin NFTs launch this summer.
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