As the highly anticipated Bitcoin halving draws near, experts in the nonfungible token (NFT) space predict that this crypto milestone will not only affect crypto tokens but also have a positive impact on the NFT ecosystem.
Oscar Franklin Tan, the CFO of Atlas Development and a core contributor to the NFT platform Enjin, believes that NFT prices will experience a surge after the halving. Tan explains that this is part of a well-known cycle where interest in Bitcoin spills over into other ecosystems like NFTs. He specifically mentions NFTs integrated within altcoin ecosystems, which are different from profile picture (PFP) projects. These NFTs receive token airdrops or digital collectibles used in token-gated networks.
Zach Burks, the founder of NFT marketplace Mintable, agrees that it is almost impossible to accurately predict the future growth or adoption of technology. However, he expects an increase in trading volume for NFTs as Bitcoin’s price rises. He also suggests that if the halving boosts user engagement, NFT prices could experience an uptrend.
Burks further believes that Bitcoin Ordinals will be directly impacted by upward BTC price movements. He argues that there are Bitcoin holders who have not been able to use their BTC for significant participation in the Bitcoin ecosystem for years. Tan shares this sentiment and describes Bitcoin Ordinals as an obvious beneficiary of the Bitcoin exchange-traded fund (ETF) narrative. He suggests that if the ETF establishes Bitcoin as digital gold, then Ordinals will be established as digital gold carvings on the blockchain.
Jimmy Zhao, a senior solution architect at BNB Chain, explains that the halving could highlight how Ordinals can help miners generate revenue as BTC rewards decrease. Zhao points out that Ordinals have already generated over $200 million in transaction fees for miners and expects them to receive a boost from the upcoming halving, which will influence fees and miner revenue.
Zhao also believes that the halving could have a broader impact on NFT adoption. He suggests that when the halving is recognized in the mainstream media, it could trigger a domino effect, leading to more people being exposed to NFT utility and understanding its use cases.
Burks shares similar beliefs, stating that the halving could act as free marketing for the broader crypto sector and attract new individuals. He explains that the increased attention on Bitcoin during this time may lead to the emergence of new NFTs or marketplaces focused on digital collectibles. As Bitcoin becomes increasingly intertwined with NFTs, the adoption of NFTs is likely to follow suit.
In related news, the owner of a seven-trait CryptoPunk Seedphrase has partnered with Sotheby’s, further highlighting the growing popularity and value of NFT collectibles.