Bitcoin Halving to Influence Crypto Tokens and Boost NFT Market, Say Industry Experts
Summary:
As Bitcoin's halving event approaches, industry experts predict it will not only influence cryptocurrency tokens but will also positively impact the non-fungible token (NFT) space. They anticipate an overflow of interest from Bitcoin to NFTs that might result in a surge in NFT prices and trading volumes. Experts also believe Bitcoin Ordinals will benefit from Bitcoin price surges, and the halving event could demonstrate how Ordinals help miners earn profits as BTC rewards diminish. This broad impact of the halving is expected to increase awareness of NFTs, potentially drawing new participants into the wider crypto sector.
As Bitcoin's eagerly-awaited halving approaches, experts in the nonfungible token (NFT) industry are predicting the event will influence not only crypto tokens but may also bring positive changes to the NFT sector. Oscar Franklin Tan, CFO of Atlas Development, a significant participant in the Enjin NFT platform, anticipates a rise in NFT prices following the halving. He suggests that as interest in Bitcoin grows, it is likely to overflow into other areas such as NFTs. Tan specifically envisions this phenomenon affecting NFTs linked with alternate coin ecosystems, varieties distinctly different from Profile Picture (PFP) ventures.
On a similar note, Zach Burks, the creator of NFT marketplace Mintable, asserts that while forecasting future tech growth or adoption is challenging, increased trading volume for NFTs can logically be expected with Bitcoin's rising prices, boosting overall user engagement. Burks also believes that Bitcoin Ordinals will likely feel the effects of the BTC price surge directly, with a potential influx of Bitcoin owners utilizing their flush wallets for participation in the Bitcoin ecosystem after years of dormancy.
As echoed by Tan, BTC Ordinals stand as potential prime beneficiaries from a possible Bitcoin exchange-traded fund (ETF) narrative. Additionally, Jimmy Zhao, senior solution architect at BNB Chain, suggests the impending halving could expose how Ordinals can be instrumental in helping miners rake in profits as BTC rewards taper off. The phenomenon of Ordinals being likely to receive a fillip is particularly significant considering the halving's influence on transaction fees and miners' earnings.
Regarding NFT adoption in light of the Bitcoin halving, Zhao asserts the halving could catalyze a ripple effect when it garners mainstream media attention. This, in turn, could lead to an increased awareness and understanding of NFTs and their practical applications. Similarly, Burks believes this could serve as a free promotional tool for the wider crypto sector, drawing in fresh participants.
Tan foresees the halving influencing NFT adoption due to emerging digital collectibles-focused NFTs or marketplaces. Considering Bitcoin's growing relevance in the NFT landscape, NFT adoption could escalate promptly when Bitcoin takes center stage.
Published At
3/6/2024 2:12:11 PM
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