Experts anticipate that the upcoming Bitcoin halving will positively impact the NFT ecosystem, leading to a surge in prices and increased adoption amid rising BTC prices.
As the highly anticipated Bitcoin halving approaches, experts in the nonfungible token (NFT) sphere foresee a potential positive impact on the NFT ecosystem alongside the crypto milestone.
According to Oscar Franklin Tan, the chief financial officer of Atlas Development and a key contributor to the NFT platform Enjin, NFT prices are expected to "rise after the halving." Tan elaborates that this surge is part of a familiar cycle where Bitcoin interest spills over into other ecosystems like NFTs. Tan stated:
“Prices and volumes should eventually surge after the halving as part of the known cycle. Because NFTs are established segments of ecosystems, interest from Bitcoin will spill over into NFTs together with altcoins.”
Tan highlighted that this phenomenon particularly affects NFTs integrated within altcoin ecosystems, distinguishing them 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, expressed that while accurately predicting future technology growth is challenging, the community can anticipate increased trading volume for NFTs as Bitcoin’s price rises. Burks stated, “If the halving also boosts user engagement, it is reasonable to expect an uptrend in NFT prices.”
Bitcoin Ordinals Set for Direct Impact
Burks also opined that Bitcoin Ordinals will see a direct impact from upward BTC price movements. He believes that many Bitcoin holders, who previously couldn't utilize their BTC significantly within the Bitcoin ecosystem, will now have the opportunity due to price increases.
“This means there are a lot of people who have disposable income in Bitcoin to spend or use that haven’t had anything to use it on until now. This multiplies as the price increases, once we break $70,000, every user who has ever bought Bitcoin will be in the green, and this means there is more money to play with.”
Tan concurred, describing Bitcoin Ordinals as an “obvious beneficiary” of the Bitcoin exchange-traded fund (ETF) narrative. He suggested that if the ETF establishes Bitcoin as digital gold, then Ordinals are established as digital gold carvings immutable on the mother chain.
Meanwhile, Jimmy Zhao, BNB Chain senior solution architect, suggested that the halving could spotlight how Ordinals can assist miners in generating revenue after BTC rewards decrease. With Ordinals generating over $200 million in transaction fees for miners, Zhao believes that Ordinals are likely to experience a boost as the upcoming halving influences fees and miner revenue.
NFT Adoption Amidst Bitcoin Halving
Zhao also anticipates that the halving could influence NFT adoption on a broader scale. He believes that the mainstream media's recognition of the halving could trigger a domino effect, exposing more individuals to NFT utility and understanding its use cases.
Burks shared similar sentiments, suggesting that the halving might serve as “free marketing” for the broader crypto sector, attracting newcomers who might then engage with the wider crypto and Web3 ecosystem, including NFTs, DeFi, and other applications beyond trading.
Tan believes the halving will impact NFT adoption as well, predicting the emergence of new NFTs or marketplaces focusing on digital collectibles. With Bitcoin becoming “increasingly intertwined” with NFTs, the adoption of NFTs would closely follow whenever Bitcoin stands in the limelight.