The new entrants have materialized in 2023 following bitcoin network upgrades that enabled each satoshi - the smallest denomination of bitcoin, or one hundred millionth - to store a few megabytes of data, from text and images to audio and video.
The colored balls form part of TwelveFold, a collection of 300 images of 3D objects rendered in a square grid, from NFT developers Yuga Labs, best known for its Bored Ape Yacht Club. It calls the set “a visual allegory” for data on blockchain. Although the market for bitcoin NFTs has only been going since January, Galaxy estimates it could be worth $4.5 billion by 2025, basing its bullish forecast on factors such as the growth of the more established Ethereum NFT market and the fact that bitcoin is by far the most popular cryptocurrency.
Nonetheless, bitcoin NFTs have built up a head of steam in a short space of time. Satoshis inscribed with NFTs are involved in about 7% of the total number of bitcoin blockchain transactions, according to Glassnode data.One of the biggest challenges for this new class of NFTs is the dearth of a user-friendly marketplaces, with early transactions taking place over-the-counter on shared online spreadsheets, according to market players.