Bitcoin is already designed to handle it, it's one of the reasons that there is and must be some block capacity limit.
That is my question. Isn't the "free market" in a 4MB blockspace a miniature garden that only works within certain boundaries?
If it is connected to an external economy and profits and losses are calculated in total with the external market, economic rationality only in the miniature garden will not work. Ordinals did not stop because of economic inefficiency in the miniature garden, but just because the external economy's NFT market died. What should be noted is that when the external economy (NFT market) was alive, it was minted with exorbitant fees in the miniature garden. This is because even if you pay high fees in the blockspace, you still make a profit in total with the external economy.
If oracles and scripts would evolve and more sustainable "goods" than NFTs would be mounted, the blocks might continue to be filled with those goods.
But I don't know whether that is a problem though.
P.S. I posted a similar discussion here, but then I remembered this so I multi-posted it.
https://stacker.news/items/971211