As the highly anticipated Bitcoin halving draws nearer, experts in the nonfungible token (NFT) industry are predicting that this crypto milestone will not only affect crypto tokens but could also have a positive impact on the NFT ecosystem.
Oscar Franklin Tan, the CFO of Atlas Development and a key 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. Tan 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, predicts that as Bitcoin’s price rises, there will be an increase in trading volume for NFTs. While accurately predicting the future growth or adoption of technology is difficult, Burks believes that if the halving also boosts user engagement, there could be an uptrend in NFT prices.
Burks also suggests that Bitcoin Ordinals, a type of NFT, will be directly impacted by the upward movements in Bitcoin’s price. He explains that there are Bitcoin holders who haven’t been able to use their BTC for significant participation in the Bitcoin ecosystem for years. Tan supports this idea 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 on the blockchain.
Jimmy Zhao, a senior solution architect at BNB Chain, highlights how the halving could affect NFT adoption on a broader scale. He suggests that when the halving is recognized in mainstream media, it could trigger a domino effect, exposing more people to the utility of NFTs and helping them understand their use cases.
Burks shares a similar view, stating that the halving could serve as free marketing for the broader crypto sector and attract new individuals. He believes that the halving will not only impact NFT adoption but also lead to the emergence of new NFTs and marketplaces focusing on digital collectibles. As Bitcoin becomes increasingly intertwined with NFTs, the adoption of NFTs will closely follow when Bitcoin gains more attention.
In other news, the owner of a seven-trait CryptoPunk Seedphrase has partnered with Sotheby’s, a renowned auction house, further demonstrating the growing interest and value associated with NFT collections.