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TLDR
- Bybit announced the closure of its NFT and Inscription marketplaces effective April 8, 2025
- The shutdown is part of a broader industry trend as NFT trading volumes have fallen over 95% from peak levels
- Other major platforms including X2Y2, Kraken, RTFKT, and LG have also recently exited the NFT marketplace business
- Bybit’s decision comes weeks after suffering a $1.4 billion hack attributed to North Korea
- First quarter 2025 NFT sales dropped 63% year-over-year, though some collections like Pudgy Penguins and Doodles showed growth
Cryptocurrency exchange Bybit announced it will shut down its NFT marketplace on April 8, joining a growing list of major platforms abandoning the once-booming digital collectibles sector. The decision comes as NFT trading volumes have plummeted more than 95% from their 2021 peak.
In an April 1 statement, Bybit said it would close its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages as part of an effort to “streamline offerings and enhance user experience.” Users have been advised to transfer assets from their Bybit web3 wallets before the deadline.
The move follows a major security breach at Bybit in February, when hackers linked to North Korea stole an estimated $1.4 billion in digital assets. This hack, described as the largest crypto theft to date, has put added pressure on the exchange to reevaluate its risk exposure and operational focus.
Industry-Wide Retreat
Bybit is far from alone in its exit from the NFT space. Several other major platforms have made similar moves in recent months, pointing to a broader market shift.
Just days earlier, Ethereum NFT marketplace X2Y2 announced it would shut down its trading platform at the end of April. Despite processing $5.6 billion in trading volume over its lifetime, X2Y2 cited the “90% shrinkage of NFT trading volume from its peak” as a key factor in its decision.
The X2Y2 team stated, “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.” The company indicated it would pivot toward artificial intelligence.
Kraken also closed its NFT marketplace on February 27, saying it needed to reallocate resources toward “new products and services.” Nike-owned RTFKT ceased operations in January following steep declines in the value of its NFT collections.
Even non-crypto companies are retreating. Television manufacturer LG plans to close its NFT platform, LG Art Lab, on June 17, stating it’s “the right time to shift our focus and explore new opportunities.”
Market Collapse
Data tells the story of a market in steep decline. Daily NFT trading volume has fallen from over $18 million a year ago to just $5.34 million today—a 70% drop. The contrast is even more striking when compared to the market’s peak on December 17, 2024, when volume exceeded $113.6 million.
Total NFT sales fell to $1.5 billion during the first quarter of 2025, down from $4.1 billion in the same period last year—a 63% year-over-year drop. Sales in March alone were down 76% compared to the prior year.
The number of active wallets engaging in NFT trades has plummeted from over half a million at the market’s height to less than 20,000 today, according to blockchain analytics firm DappRadar.
Value Erosion
Once-prestigious NFT collections have seen their value erode rapidly. The floor price for CryptoPunks has fallen to 42.59 ETH, down nearly 66% from their August 2021 high of 125 ETH.
Bored Ape Yacht Club NFTs have fared even worse, with prices plunging 90% from a May 2022 peak of 153.7 ETH to just 15.35 ETH today. These collections, once the crown jewels of the NFT world, no longer command the trading volumes or attention they once did.
Some industry experts suggest the market is evolving rather than dying. Charu Sethi, president at NFT-focused Polkadot and Kusama chain Unique Network, told Cointelegraph that “the speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era as core infrastructure.”
This shift may explain why some collections have bucked the downward trend. Pudgy Penguins saw a 13% sales increase in the first quarter of 2025, reaching $72 million in sales.
Doodles also performed well, benefiting from a recent partnership with McDonald’s to hit $32 million in quarterly sales. Milady Maker was another collection that outperformed market expectations, according to recent reports.
The struggles of new projects highlight the changed landscape. NFT project Gutter Cat Gang (GCG) reportedly had a difficult token launch for its GANG token on Apechain on March 31, attributed to a “technical issue” by the team.
However, data shared online indicated the project attracted only 3.66 Ether (worth about $6,800) in its token sale, far short of its $1 million target. The team has not yet addressed these claims.
Despite the market downturn, some in the space remain optimistic. The NFT Paris conference in February 2025 drew an estimated 20,000 attendees, suggesting continued interest from creators and collectors even as investor enthusiasm wanes.
Industry analysts point to a shift from purely speculative trading toward utility-based applications. Future growth may come from gaming, AI, fan engagement, and content authentication rather than digital art speculation.
For now, however, the exodus of major platforms like Bybit indicates a market correction that shows few signs of reversing in the near term. Users of Bybit’s NFT and Inscription marketplaces have until April 8 at 4:00 pm UTC to manage their assets before the platform becomes inaccessible.
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