The magnetic rate of Bitcoin will trigger the ‘boost’ in NFT size.
As the much-anticipated Bitcoin halving draws closer, experts working in the intangible token (NFT) space predict that Crypto Miles will positively impact not only crypto tokens, but the NFT ecosystem as well.
Oscar Franklin Tan, chief financial officer for Atlas Development, a contributor to the NFT platform Engine, believes NFT prices will “rise after the halving.” The executive argued that this is part of a well-known cycle where demand for Bitcoin (BTC) spills over into other ecosystems such as NFT. Tan said:
“Prices and quantities should be halved over time as part of a known cycle. Since NFTs are an established part of the ecosystem, Bitcoin's interest flows into NFTs together with altcoins.
Tan told Cointelegraph that this is particularly the case for integrated NFTs in the altcoin ecosystem, which are different from profile picture (PFP) projects. The executive explained that these NFTs will accept token airdrops, or digital collections, to be used in token-gate networks.
According to Zack Burks, founder of NFT marketplace Mintable, regardless of whether he accurately predicts future growth or technology adoption, when the public's price of Bitcoin increases, trading volume for NFTs increases. “If the halving increases user participation, it is reasonable to expect an increase in NFT prices.”
Bitcoin Turnovers ‘To Be Directly Impacted'
Burks shared his belief that BTC Ordinals will be “directly impacted” by upward BTC price movements. Burks believes that there are Bitcoin holders who have been significantly involved in the Bitcoin ecosystem for years who have not been able to use BTC.
“This means there are a lot of people with disposable income in Bitcoin that has not been used or used up until now. The more the price goes up, the more every user who buys Bitcoin will be green after we break $70,000. This means there is more money to play with.”
Tan echoed the sentiment and described Bitcoin Ordinals as a “clear beneficiary” of the Bitcoin Exchange-Treaded Fund (ETF) narrative. “If the EFF establishes Bitcoin as digital gold, ordinals will be established as immutable digital gold derivatives on the mother chain.”
Meanwhile, BNB Chain Senior Solutions Architect Jimmy Zhao explained that the halving could highlight how miners can monetize after BTC rewards continue to shrink. With ordinals generating more than $200 million in transaction fees for miners, he said the ordinals could get a big boost as the upcoming halving will impact payments and mining revenue.
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NFT adoption amid Bitcoin halving
Zhao also believes that halving will impact NFT adoption. The executive said it could create a domino effect when the halving is recognized by the mainstream media. Zhao believes that with this, more people will be exposed to the NFT utility and understand the use cases.
Burks expressed similar beliefs. According to Mintable's founder, the halving could be used as “free marketing” for the broader crypto sector and attract new individuals. He explained.
“As these newcomers integrate into the crypto ecosystem, we see them expanding beyond buying BTC on exchanges. Instead, they will begin to engage with the broader crypto and Web3 ecosystem, including NFTs, DeFi, and other applications beyond trading.
Meanwhile, Tan believes the halving will have an impact on NFT adoption as new NFTs or marketplaces focusing on digital collections may emerge. As Bitcoin is “increasingly intertwined” with NFTs, the adoption of NFTs will closely follow Bitcoin's take on the seriousness.
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