NFT Exchange X2Y2 Shuts Down

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The non-fungible token market is gradually maturing and turning competitive, with only a small, consistent community of dedicated NFT collectors and projects remaining active. In yet another incident, NFT exchange X2Y2 has announced plans to shut down its marketplace after three years of operation. The NFT project anticipates seeking good pastures in the AI-driven crypto sector.

NFT marketplace X2Y2 is shutting down after a 90% drop in trading volume. Over three years, it processed $5.6B in transactions. Operations will end on April 30, but smart contracts stay active. The team has now shifted focus to AI, blending NFTs and innovation. 🚀💻 #NFT #AI pic.twitter.com/IFNcSmf5ws

— TradeDucky (@tradeducky) March 31, 2025

X2Y2 NFT Marketplace Shuts Down

In a March 31 blog post, the X2Y2 NFT startup confirmed plans to shut its non-fungible token market platform on April 30. The NFT marketplace has hinted at plans to switch its focus to an artificial intelligence project. The announcement follows early February reports that tokens tied to artificial intelligence agents were down by as much as 90% from 2024 highs. Still, recent reports suggest that the rise of AI-driven crypto agents may be following a familiar trajectory.

After 3 incredible years and $5.6B in trading volume, X2Y2 will be sunsetting as an NFT marketplace on April 30, 2025. Read @tp_x2y2‘s full announcement below for details. 👇 https://t.co/Qj4DEJkkmy

— X2Y2 (@the_x2y2) March 31, 2025

X2Y2 is an innovative non-fungible token marketplace, initially created as a fork of LooksRare. The NFT marketplace became popular for incentivizing and rewarding its traders and collectors for their engagement on the platform. X2Y2 was a marketplace for buying and selling NFTs, and at one point, it briefly trailed only the OpenSea NFT marketplace in trading volume. But what are the factors pushing X2Y2 to exit the NFT market?

The NFT market has significantly declined, with trading volumes dropping nearly 90% since its peak, making it difficult for X2Y2 to maintain network effects. According to Token Terminals, an on-chain crypto market data aggregator and non-fungible token projects explorer, X2Y2 saw only $53 million worth of trading volume over the last 365 days. X2Y2 is far behind the market leader blur, which has amassed over $3 billion in the 12 months.

NFT Marketplaces That Have Quitted The Market

X2Y2 NFT marketplace joins the rapidly growing list of NFT projects exiting the NFT market. In January 2025, Quidd, an NFT marketplace under Animoca Brands, announced its closure. The platform ceased operations on January 3, 2025. The MakersPlace, another digital art market platform, also shut down its operations in early 2025 due to “ongoing market challenges” after six years of operation.

BREAKING: Quidd SHUTS DOWN PERMANENTLY 👾

➡️ Quidd announce closure
➡️ Paul Barron is nowhere to be found
➡️ YouTuber Cavell Anderson was paid to promote Quidd, while criticizing VeVe
➡️ Consolidation in the space was necessary

After a lot of mudslinging and paying influencers… pic.twitter.com/aDk2e97mtP

— Sergio (@SergioCollects) January 3, 2025

In November 2024, Kraken, one of the leading crypto exchanges, closed its NFT marketplace, citing bad NFT market conditions. Previously, GameStop decided to close down its NFT platform, which it initially launched in July 2022, during the peak of NFT trading. Last year, Nike closed its digital asset incubation studio RTFKT, citing poor performance in the NFT market.