Mar 06, 2024

NFT Market Expected to Boom After Bitcoin Halving

As the highly-anticipated Bitcoin halving draws near, experts in the nonfungible token (NFT) industry anticipate that the crypto milestone will not only impact digital tokens, but also have a positive effect on the NFT ecosystem. Oscar Franklin Tan, CFO of Atlas Development and a key contributor to the NFT platform Enjin, predicts that NFT prices…

Alt_Text: Image of Bitcoin halving event with NFT symbols in the background, representing the potential surge in NFT volume. Keywords: NFT volume, web 3.0 technology, web 3.0 development.
Bitcoin halving will spur ‘surge’ in NFT volume

As the highly-anticipated Bitcoin halving draws near, experts in the nonfungible token (NFT) industry anticipate that the crypto milestone will not only impact digital tokens, but also have a positive effect on the NFT ecosystem.

Oscar Franklin Tan, CFO of Atlas Development and a key contributor to the NFT platform Enjin, predicts that NFT prices will “surge after the halving.” Tan argues that this is part of a known cycle where interest in Bitcoin (BTC) spills over into other ecosystems, such as NFTs. He stated:

“As Bitcoin’s price rises, we can expect to see a rise in interest and demand for NFTs, particularly those integrated within altcoin ecosystems. These NFTs, unlike profile picture (PFP) projects, often receive token airdrops or serve as digital collectibles within token-gated networks.”

Zach Burks, founder of NFT marketplace Mintable, acknowledges that accurately predicting the future growth and adoption of technology is nearly impossible. However, he believes that as Bitcoin’s price rises, there will likely be an increase in trading volume for NFTs. Burks stated:

“If the halving also leads to increased user engagement, it is reasonable to expect an uptrend in NFT prices.”

The Impact of Bitcoin Ordinals on the Market

According to Burks, the rise in BTC price will directly affect Bitcoin Ordinals. He believes that many Bitcoin holders have been unable to fully participate in the Bitcoin ecosystem for years.

Tan also agrees, stating that Bitcoin Ordinals will be a clear beneficiary of the upcoming Bitcoin exchange-traded fund (ETF) narrative. As the ETF solidifies Bitcoin’s status as digital gold, Ordinals will establish themselves as immutable digital gold carvings on the mother chain.

Furthermore, Jimmy Zhao, senior solution architect at BNB Chain, points out that the upcoming halving could highlight the importance of Ordinals in generating revenue for miners as BTC rewards decrease. With Ordinals already generating over $200 million in transaction fees for miners, Zhao predicts a further boost for Ordinals as the halving affects fees and miner revenue.

The Impact of the Bitcoin Halving on NFT Adoption

According to industry experts, the upcoming Bitcoin halving event could have a significant impact on the adoption of non-fungible tokens (NFTs). This could be due to increased media coverage and exposure, leading to a domino effect of increased interest and understanding of NFT utility.

Some believe that the halving could act as free marketing for the broader crypto sector, attracting new individuals and potentially leading to the emergence of new NFTs or marketplaces focused on digital collectibles. This is because Bitcoin and NFTs are becoming increasingly intertwined, and as Bitcoin takes the spotlight, so too may NFT adoption.

As the world moves towards web 3.0 technology, the potential for AI marketing and the use of crypto tokens like XCN, WLUNA, WAX, and ZIL is also increasing. It is believed that web 3.0 development will further drive the adoption and integration of these technologies, making it an exciting time for the crypto industry. Web 3.0 officially began with the launch of Ethereum in 2015, and its impact on the world of technology and finance is only just beginning to be realized.

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