NFT Marketplace X2Y2 will close its trading platform on April 30th after three years of operation. Smart contracts on the marketplace continue to function, but users will no longer have access to the front-end interface. Native Token X2Y2 fell 13% in the last 24 hours to $0.0014, with market capitalization below $540,000, exceeding 99% from its all-time high of $4.14 in February 2022.
The shutdown follows a sharp decline in NFT trading volume. X2Y2, once a strong competitor for Opensea and Blur, peaked in May 2022 at a monthly trading volume of $209 million. However, activities fell 90% due to competition and overall slump in the NFT market. “The marketplace is live or die by network effects,” said TP, founder of X2Y2. “We’ve become #1, but it’s clear that three years later it’s time to move on.”
Despite closing the market, X2Y2 is not completely separated from the crypto space. The team is shifting its focus to new financial tools within Crypto. I think this is long-term value. TP described the next project as “decentralized, innovative and crucially built throughout the market cycle.” The company suggests developing a new platform focused on generating returns in an unauthorized way.
X2Y2 is not the only NFT platform to shut down. LG recently announced that it would cancel the NFT market LG Art Lab on June 17th and cite changes in the market situation. The platform, launched in September 2022, allowed users to display NFTs on their smart TVs and collaborate with artists.
The NFT market has declined sharply overall. At its peak in 2022, X2Y2 processed more than $5.6 billion in Ethereum NFT transactions. However, in the last 12 months, total trading volumes have been only $53.6 million, Blur, Opensea and unchanging. Many other NFT platforms have also experienced a significant drop in activity as investors’ interest in speculative trading has diminished.
Despite the recession, some believe that NFTs are evolving beyond speculation. Industry leaders argue that NFTs will continue to grow in areas such as gaming, digital identity, and brand engagement. “The speculative phase is over, but NFTs are now becoming the core infrastructure for new opportunities,” said Charu Sethi, president of Unique Networks.
As shown at events like NFT Paris 2025, interest in NFT remained, attracting around 20,000 participants, including investors and developers. Some people in the industry see the current decline as part of a natural cycle of growth, correction, and reinvention. “NFT continues to be one of the most powerful primitives in cryptography,” said Alexander Salnikov, co-founder of Rarible, predicting future projects will focus on real use cases.
The X2Y2 pivot reflects the broader trends of crypto companies looking for new opportunities as market conditions change. Although AI-driven financial tools are gaining attention, it remains unclear whether X2Y2’s next venture will be successful.