- A Galaxy Research report suggests a dramatic surge in demand for storing digital assets on Bitcoin, with market growth hitting $4.5B.
- Galaxy’s analysts believe that Bitcoin’s infrastructure will expand to accommodate many more users by this summer. One key reason includes Bitcoin NFTs having advantages that Ethereum does not.
- Marketplaces and crypto wallets are already capitalizing on this new trend — offering support to enhance user experience on the blockchain network.
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.
With some of the most prominent players in the NFT industry — like Bored Ape’s Yuga Labs and DeGods Frank — adding their digital assets to the Bitcoin ecosystem, 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 inscriptions includes using satoshis to reduce fungibility of Bitcoin. Thus, “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, which 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, new wallets and marketplaces are already emerging to support user experience for such assets.
Consequently, Galaxy believes more Bitcoin NFTs will launch by this summer.
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