X2Y2 and Bybit, two major players in the crypto space, have announced they are shutting down their NFT marketplace businesses as interest and trading volumes in the NFT sector continue to decline.
X2Y2 will end its services on April 30, while Bybit will cease its NFT and inscription marketplaces by April 8. These closures reflect a wider downturn in the NFT industry, which has seen a steep drop in activity since its 2021 peak.
Sharp Decline in NFT Trading Volumes
X2Y2’s decision was directly tied to the ongoing slump in the NFT market. The platform highlighted that overall trading volume has fallen by 90% since its peak in 2021. Once a top competitor to OpenSea, X2Y2 has seen its numbers dwindle, reaching only $53.5 million in trading volume over the last 12 months — a sharp contrast to the $5.6 billion it once generated.
Bybit, one of the world’s largest centralized crypto exchanges, also announced the closure of its NFT operations but provided less detail. The company stated the move was part of efforts to “streamline offerings,” without elaborating further.
Wider Industry Challenges
The drop in activity isn’t limited to these two platforms. According to Token Terminal data, daily trading volume across the top 20 NFT marketplaces has plummeted from over $62 million at the end of January to just $5.35 million by the end of March.
Despite this trend, a few marketplaces like Blur and OpenSea have managed to stay active. Blur has generated $3 billion in trading volume over the last year, while OpenSea followed with $1.2 billion. Others like Immutable and NFTX have also stayed afloat, but with significantly smaller numbers.
A Shift Toward AI
X2Y2’s founder, known as TP, hinted at a shift in focus for the company. In the announcement, TP shared that the team is now working on a new product in the artificial intelligence space, calling AI the “biggest paradigm shift” of our time. This move suggests that the firm is hoping to reposition itself in a more promising and growing tech sector.
Commenting on the current market, Harrison Seletsky of SPACE ID noted that NFTs largely depend on hype and speculation. While he doesn’t believe NFTs are entirely finished, he suggests that investor attention has moved on. The current closures reflect this shift, as platforms look to adapt to new trends and technologies beyond NFTs.