NFT Marketplace X2Y2 Shuts Down as Trading Volume Drops 90%

X2Y2, a once-prominent NFT marketplace, is set to shut down on April 30 after three years of operation. The decision was made in light of a significant decline in trading volume, with the platform reporting a 90% drop from its peak in 2021. In a statement released on March 31, the platform’s founder, TP, acknowledged the decline in the NFT market and the difficulty of staying competitive.

X2Y2 had initially launched as an alternative to major NFT platforms like OpenSea and LooksRare, rising to prominence with a $5.6 billion all-time trading volume. However, as of now, its trading volume has drastically fallen to just $53.6 million, as per data from Token Terminal.

TP explained that this “shrinkage” in trading activity, along with other market challenges, made the decision to sunset X2Y2 as an NFT marketplace inevitable. He emphasized the importance of learning from the journey, stating that “lasting value beats chasing trends” and that the team was drawing a clear line, signaling an end to the marketplace’s operations.

Despite the marketplace’s closure, the platform’s smart contracts will remain functional, enabling users to interact with them. However, the team warned that the shutdown would likely have a negative impact on the X2Y2 token, which had been tied to the marketplace’s NFT vision. Following the announcement, the token saw a 6.95% drop in price.

The closure marks the end of an era for X2Y2, but the team is not abandoning the broader crypto space. Instead, they are pivoting towards AI, calling it “the biggest paradigm shift we’ll see in our lifetimes.” While specific details about the new project remain scarce, the team hinted that their next initiative would leverage their experiences from the NFT space and focus on permissionless AI-driven yields.

This pivot highlights the evolving nature of the crypto and NFT industries, where projects are constantly adapting to changing market dynamics and exploring new technologies like AI. X2Y2’s shift to AI represents an attempt to stay relevant in an ever-changing digital landscape while reflecting the broader industry’s growing interest in AI.