As the highly anticipated Bitcoin halving approaches, experts in the nonfungible token (NFT) industry are predicting 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. According to Tan, this is part of a well-known cycle where interest in Bitcoin spills over into other ecosystems like NFTs. He explained that this is especially true for NFTs integrated within altcoin ecosystems, which are different from profile picture (PFP) projects. These NFTs often receive token airdrops or digital collectibles used in token-gated networks.
Zach Burks, the founder of NFT marketplace Mintable, stated that while it is nearly impossible to accurately predict the future growth or adoption of technology, the community can expect an increase in trading volume for NFTs as Bitcoin’s price rises. Burks believes that if the halving also boosts user engagement, it is reasonable to expect an upward trend in NFT prices.
Burks also believes that Bitcoin Ordinals will be directly impacted by the upward movement of BTC prices. He suggests 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 believes that if the ETF establishes Bitcoin as digital gold, then Ordinals will be established as digital gold carvings that are immutable on the mother chain.
Meanwhile, Jimmy Zhao, a senior solution architect at BNB Chain, explains that the halving could highlight how Ordinals can help miners generate revenue after BTC rewards decrease. With Ordinals generating over $200 million in transaction fees for miners, Zhao expects a boost in Ordinals as the upcoming halving influences 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 increased exposure and understanding of NFT utility and use cases.
Burks shares similar beliefs, stating that the halving may serve as free marketing for the broader crypto sector and attract new individuals. He explains that as Bitcoin becomes increasingly intertwined with NFTs, the adoption of NFTs will closely follow when Bitcoin gains attention.
Overall, experts in the NFT industry are optimistic about the impact of the Bitcoin halving on NFTs. They anticipate increased trading volume, surging prices, and potential new marketplaces focusing on digital collectibles. With Bitcoin and NFTs becoming more interconnected, the halving is seen as a catalyst for NFT adoption and growth.