NFT marketplace X2Y2 has announced it will shut down its trading platform on April 30, after three years of operation. Although the marketplace’s smart contracts will remain active, users will no longer have access to the platform’s front-end interface. The announcement comes amid a significant drop in trading volume, with X2Y2’s native token, X2Y2, losing 13% in the last 24 hours and now valued at $0.0014, bringing its market cap below $540,000—a decline of more than 99% from its peak of $4.14 in February 2022.
Decline in Trading Volume Leads to Shutdown
X2Y2, once a major competitor to platforms like OpenSea and Blur, saw a dramatic rise in trading volume, peaking at $209 million in monthly trading in May 2022. However, the platform’s activity has since fallen by 90%, largely due to increased competition and the overall downturn in the NFT market. “Marketplaces live or die by network effects,” said X2Y2 founder TP. “We fought to be #1, but after three years, it’s clear it’s time to move on.”
X2Y2’s Future Plans in Crypto
Despite the closure of its marketplace, X2Y2 is not exiting the crypto space entirely. The company’s team is pivoting toward new financial tools within the crypto world, which they believe will provide long-term value. TP teased that the next project would be “decentralized, innovative, and built to matter across market cycles.” The company has hinted at the development of a new platform designed to generate returns in a permissionless manner.
Other NFT Platforms Follow Suit
X2Y2 is not the only NFT marketplace facing challenges. LG announced it would shut down its NFT platform, LG Art Lab, on June 17, citing changing market conditions. Launched in September 2022, the platform allowed users to display NFTs on smart TVs and collaborate with artists.
The Declining NFT Market
The NFT market as a whole has seen a sharp decline. At its peak in 2022, X2Y2 processed over $5.6 billion in Ethereum-based NFT transactions. However, over the past 12 months, the platform’s total trading volume has fallen to only $53.6 million, trailing behind competitors like Blur, OpenSea, and Immutable. Many other NFT platforms have also faced substantial drops in activity, as the hype around speculative trading continues to fade.
The Future of NFTs Beyond Speculation
Despite the downturn, some experts believe NFTs are evolving into more than just speculative assets. Industry leaders argue that NFTs will continue to grow in sectors such as gaming, digital identity, and brand engagement. “The speculative phase is over, but NFTs are now becoming core infrastructure for new opportunities,” said Charu Sethi, president of Unique Network.
Interest in NFTs persists, as seen by events like NFT Paris 2025, which attracted approximately 20,000 attendees, including investors and developers. Some industry insiders view the current decline as a natural cycle of growth, correction, and reinvention. “NFTs remain one of the most powerful primitives in crypto,” said Alexander Salnikov, co-founder of Rarible, predicting that future projects will focus on practical, real-world use cases.
X2Y2’s Pivot Reflects Broader Trends in Crypto
X2Y2’s pivot highlights the ongoing search for new opportunities in the crypto industry, as market conditions continue to evolve. While AI-driven financial tools are gaining traction, it remains to be seen whether X2Y2’s new venture will succeed.
