TLDR
- Bybit has officially declared its intentions to cease operations for its NFT and Inscription marketplaces starting from April 8, 2025.
- Reflecting a widespread trend across the industry, the closure comes as a response to NFT trading volumes plummeting by more than 95% from their highest points.
- Major players like X2Y2, Kraken, RTFKT, and LG have similarly chosen to exit the NFT marketplace space recently.
- The choice by Bybit arrives only weeks following a substantial hack where $1.4 billion was reported stolen, attributed to North Korean actors.
- In the first quarter of 2025, the NFT market saw a sales reduction of 63% when compared year-over-year, though certain collections like Pudgy Penguins and Doodles bucked the trend with positive growth.
Cryptocurrency exchange Bybit has proclaimed its NFT marketplace shutdown effective from April 8, adding itself to the growing roster of platforms moving away from digital collectibles after witnessing a seismic falloff in trading activity exceeding 95% since their heyday in 2021. Bybit's statement on April 1 confirmed the imminent closure of its NFT Marketplace, Inscription Marketplace, and IDO product pages, part of a broader strategy to consolidate offerings and improve user satisfaction. They have urged users to transfer their assets from Bybit's web3 wallets before the shutdown date.
After suffering a significant security breach in February, where hackers linked to North Korea absconded with approximately $1.4 billion in crypto, Bybit has been compelled to reassess its risk strategy and operational objectives.
Bybit isn’t the only platform retracting from the NFT domain. Many other significant platforms have initiated similar moves recently, pointing towards a shift in market dynamics.
Industry-Wide Retreat
In a similar vein, Ethereum-based marketplace X2Y2 has announced an impending closure of its trading services by the end of April, despite generating $5.6 billion in trading volume over its life. They attribute the closure to the alarming shrinkage, about 90%, in NFT trading volumes from peak levels.
A voice from X2Y2 revealed, 'Our success relied heavily on network effects, achieving a top spot was tough, but after three years, it's evident we must pivot.' They hinted at exploring avenues like artificial intelligence.
The X2Y2 team stated, Kraken shut its NFT marketplace doors on February 27, redirecting resources towards developing new products and services. Meanwhile, Nike’s RTFKT stopped operations in January as their NFT collection values plummeted.
Even traditional businesses are stepping back - LG, known for its televisions, plans to terminate its NFT venture, LG Art Lab, on June 17, stating it will now explore new opportunities.
Market data paints a bleak picture of rapid decline. Daily NFT trading volumes have steeply decreased to $5.34 million from over $18 million just a year ago — a sharp fall of 70%. The peak day, December 17, 2024, saw volumes reach $113.6 million.
Market Collapse
The totality of NFT sales hit $1.5 billion in the first quarter of 2025, a sharp drop from $4.1 billion during the same timeframe the previous year, equating to a 63% decline. March alone registered a 76% decrease compared to the same month in the prior year.
Active blockchain wallets engaged in NFT trades dropped drastically from over half a million at its zenith to under 20,000 currently, as reported by DappRadar.
Esteemed NFT collections that once held substantial value have eroded quickly. For example, CryptoPunks’ minimum price now rests at 42.59 ETH, which is a decline of nearly 66% from its August 2021 peak of 125 ETH.
Value Erosion
Bored Ape Yacht Club NFTs have suffered an even steeper fall, with prices crashing 90% from their May 2022 pinnacle of 153.7 ETH to a mere 15.35 ETH today. Once the jewels of the NFT crown, these items now command neither the trade momentum nor interest they once did.
Some experts within the field propose the market is not fading but evolving. As stated by Charu Sethi from the Unique Network blockchain, 'The hype around collectibles and trading is fading, but in lieu, NFTs are stepping into their role as integral infrastructure for future growth.'
This transition may clarify why some series defied the general decline. For instance, Pudgy Penguins reported a 13% rise in sales in Q1 2025, marking $72 million in turnover.
Similarly, Doodles enjoyed success, buoyed by a tie-in with McDonald’s, reaching $32 million in revenue for the quarter. Milady Maker is another name noted for outperforming market predictions.
The challenges faced by newer projects reveal an evolving landscape. The NFT initiative Gutter Cat Gang (GCG) experienced a rocky launch of their GANG token on Apechain, with the team acknowledging a 'technical issue.'
Reports indicate the GCG project gathered only 3.66 Ether, roughly $6,800, from its token launch, falling far short of the projected $1 million goal. The team has yet to publicly respond to the reports.
Despite the downturn, optimism persists in some pockets of the community. The NFT Paris conference in February 2025 drew an estimated crowd of 20,000, indicating continued passion from creators and collectors even as investor interest dwindles.
Industry pundits highlight a pivot from speculative trading toward practical applications. Future momentum might come from segments like gaming, AI, fan engagement, and authentication of content.
Currently, though, Bybit's decision to withdraw from the NFT realm reflects a broader market correction with little sign of immediate reversal. Bybit users managing assets through their NFT and Inscription marketplaces have until April 8 at 4:00 PM UTC to secure them before access is discontinued.
Maisie, a proficient journalist specializing in financial and cryptocurrency news, contributes her writings to platforms such as Moneycheck.com, level-up-casino-app.com, and Computing.net, serving as Editor in Chief for Blockfresh.com.
