As the much-anticipated Bitcoin halving looms closer, professionals working in the nonfungible token (NFT) space anticipate that the crypto milestone will not only affect crypto tokens but may also positively impact the NFT ecosystem.
Oscar Franklin Tan, the chief financial officer of Atlas Development, a core contributor to the NFT platform Enjin, believes that NFT prices will “surge after the halving.” The executive argued that this is part of a known cycle where interest in Bitcoin (BTC) spills over other ecosystems like NFTs. Tan said:
Tan told Cointelegraph that this is especially true for NFTs integrated within altcoin ecosystems, which are different from profile picture (PFP) projects. The executive explained that these NFTs receive token airdrops or digital collectibles used in token-gated networks.
Zach Burks, the founder of NFT marketplace Mintable, said that while accurately predicting the future growth or adoption of technology is almost impossible, the community can expect an increase in trading volume for NFTs as Bitcoin’s price rises. “If the halving also boosts user engagement, it is reasonable to expect an uptrend in NFT prices.”
Burks also shared his belief that Bitcoin Ordinals “will be directly impacted” by upward BTC price movements. Burks believes that there are Bitcoin holders who haven’t been able to use their BTC for any significant participation in the Bitcoin ecosystem for years.
Tan echoed the sentiment and described Bitcoin Ordinals as an “obvious beneficiary” of the Bitcoin exchange-traded fund (ETF) narrative. “If the ETF establishes Bitcoin as digital gold, then Ordinals are established as digital gold carvings immutable on the mother chain.”
Meanwhile, BNB Chain senior solution architect Jimmy Zhao explained that the halving could highlight how Ordinals can help miners generate revenue after BTC rewards dwindle. With Ordinals generating over $200 million in transaction fees for miners, Zhao said that the Ordinals are likely to get a boost as the upcoming halving will influence fees and miner revenue.
Zhao also believes that the halving could have an impact on NFT adoption on a broader scale. The executive said that the halving could trigger a domino effect when it gets recognized in the mainstream media because of the halving. Zhao believes that with this, more people will be exposed to NFT utility and understand its use cases.
Burks expressed similar beliefs. The Mintable founder said that the halving may act as “free marketing” for the broader crypto sector and attract new individuals. He explained:
Meanwhile, Tan believes the halving will impact NFT adoption as new NFTs or marketplaces focusing on digital collectibles may emerge. With Bitcoin being “increasingly intertwined” with NFTs, the adoption of NFTs would also closely follow when Bitcoin stands in the limelight.