TLDR

Table of Contents

Bybit is shutting down its NFT and Inscription Marketplaces on April 8 as part of streamlining efforts
The closure follows similar moves by X2Y2, Kraken, RTFKT (Nike-owned), and LG’s planned shutdown of LG Art Lab
NFT trading volume has fallen 70% year-over-year, with daily volume down from $18M to $5.34M
The NFT market has seen a 95% drop from its peak of $113.6M daily volume in December 2024
Industry shift from speculative trading to utility-based NFTs, with some collections like Doodles and Pudgy Penguins outperforming

Cryptocurrency exchange Bybit announced the closure of its NFT marketplace effective April 8, 2025, at 4:00 pm UTC. The shutdown includes both its NFT and Inscription Marketplaces as well as its initial decentralized exchange offering initiative.

This move comes as part of Bybit’s “efforts to streamline our offerings,” according to their April 1 announcement. Users have been advised to manage their assets before the platform becomes inaccessible on the shutdown date.

The closure follows a February 2025 hack of the exchange that resulted in $1.4 billion in stolen cryptocurrency. This hack, attributed to North Korea by the FBI, was reportedly the largest crypto theft to date.

Industry-Wide Retreat from NFTs

Bybit is not alone in its exit from the NFT space. Several major platforms have recently made similar decisions to wind down their NFT operations.

Ethereum NFT marketplace X2Y2 announced earlier this week that it would shut down its trading platform by April 30. The platform processed $5.6 billion in trading volume during its lifetime but cited the massive decline in NFT trading volume as a key factor in its decision.

“The 90% shrinkage of NFT trading volume from its peak in 2021 is for sure one of the many reasons,” X2Y2 stated. “But most importantly, Marketplaces live or die by network effects. We fought tooth and nail to be #1, but after three years, it’s clear it’s time to move on.”

Kraken also shuttered its NFT marketplace on February 27, pointing to a reallocation of resources toward “new products and services.” Nike-owned RTFKT ceased operations in January after steep declines in the value of its NFT collections.

Even tech giant LG plans to close its NFT platform, LG Art Lab, on June 17. The company stated it’s “the right time to shift our focus and explore new opportunities.”

Market Decline in Numbers

The NFT market has experienced a steep downward trend in recent months. Daily NFT trading volume has fallen to $5.34 million, representing a 70% drop from the $18 million recorded just one year ago.

The decline is even more dramatic when compared to the market’s peak. On December 17, 2024, NFT trading volume exceeded $113.6 million. Since then, volume has plummeted by over 95%.

First-quarter sales data for 2025 shows NFT sales dropped by 63% year-over-year. The floor prices of once-popular collections have also seen substantial declines.

CryptoPunks now trade at a floor price of 42.59 ETH, down nearly 66% from their August 2021 high of 125 ETH. Bored Ape Yacht Club NFTs have fallen even further, with prices sinking 90% from a May 2022 peak of 153.7 ETH to just 15.35 ETH today.

Shifting Focus in the NFT Space

While the speculative NFT market continues to contract, some industry experts point to a shift in focus rather than a complete collapse of the technology.

Charu Sethi, president at NFT-focused Polkadot and Kusama chain Unique Network, suggested that the market is evolving: “The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era as core infrastructure enabling massive opportunities in gaming, AI, fan engagement and content authentication.”

Despite the overall market decline, some NFT collections have bucked the trend. Doodles, Milady Maker, and Pudgy Penguins were all cited in a late March report as outperforming expectations.

The struggles in the NFT space extend to newer projects as well. Reports indicate that the NFT project Gutter Cat Gang (GCG) saw a rocky token launch of its GANG token on Apechain on March 31.

While the project attributed issues to a “technical issue” by a third party, low investor interest may have played a role. Data shared online suggested the project attracted only 3.66 Ether (worth about $6,800) in its token sale, far below its $1 million target.

As the NFT market continues to evolve, platforms like X2Y2 are pivoting to new areas such as artificial intelligence. This shift suggests that while the speculative boom in digital collectibles may be over, the underlying technologies may find new applications in different sectors.

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