The NFT marketplace X2Y2 announced it will shut down its trading platform on April 30 after three years of operation. While the marketplace’s smart contracts will remain functional, users will no longer have access to its front-end interface. The native X2Y2 token has dropped 13% in the past 24 hours to $0.0014, bringing its market cap below $540,000, down over 99% from its all-time high of $4.14 in February 2022.
The shutdown follows a steep decline in NFT trading volumes. X2Y2, once a strong competitor to OpenSea and Blur, peaked at $209 million in monthly trading volume in May 2022. However, competition and the overall downturn in the NFT market led to a 90% drop in activity.
“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.”
Despite closing its marketplace, the X2Y2 team is not exiting the crypto space entirely.
X2Y2 transitions amid market downturn
They are shifting focus to new financial tools within crypto, which they believe will have long-term value. TP described the next project as “decentralized, innovative, and built to matter across market cycles.” The company has hinted at developing a new platform focused on generating returns in a permissionless way, powered by AI. X2Y2 is not the only NFT platform shutting down.
LG recently announced it will discontinue its NFT marketplace, LG Art Lab, on June 17, citing changing market conditions. The NFT market has seen a sharp decline overall, with many platforms experiencing significant drops in activity as investor interest in speculative trading has faded. However, some industry leaders argue that NFTs are evolving beyond speculation and will continue to grow in areas like 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. This pivot reflects a broader trend of crypto companies searching for new opportunities as market conditions shift. While AI-driven financial tools are gaining attention, it remains uncertain whether X2Y2’s next venture will succeed.
Image Credits: Photo by Andrey Metelev on Unsplash
Noah Nguyen is a multi-talented developer who brings a unique perspective to his craft. Initially a creative writing professor, he turned to Dev work for the ability to work remotely. He now lives in Seattle, spending time hiking and drinking craft beer with his fiancee.
