Non-fungible token (NFT) marketplace X2Y2 will shut down its trading platform on April 30, 2025, ending a three-year run amid declining volumes and intensifying competition in the digital collectibles market.
The platform’s front-end interface will go offline, though its smart contracts will remain active, allowing users to manage and withdraw their digital assets without disruption.
The move marks a definitive end to X2Y2’s operations, and there are no plans to resume trading in the future.
The project’s native token, X2Y2, fell 13% in the past 24 hours to $0.0014, dragging its market capitalization below $540,000.
The token has declined over 99% from its all-time high of $4.14 in February 2022.
Launched in February 2022, X2Y2 rose rapidly in the NFT sector, briefly becoming the second-largest marketplace behind OpenSea.
At its peak, the platform recorded over $5.6 billion in all-time trading volume and reached $209 million in monthly volume in May 2022.
However, a 90% contraction in market-wide NFT trading volumes and increasing pressure from competitors such as Blur led to a steady decline in usage.
The platform’s pseudonymous founder, TP, cited the collapse in network effects—a key driver for marketplace success—as a decisive factor in the shutdown.
X2Y2’s decision reflects a broader market trend where several high-profile NFT ventures are pulling back or closing entirely.
Despite ending its NFT operations, the X2Y2 team plans to stay in the crypto space, with a focus on building decentralized financial tools aimed at long-term utility.
The group has hinted at a new platform designed to generate returns in a permissionless environment and has been exploring the intersection of artificial intelligence and blockchain.
X2Y2’s closure comes amid a series of similar exits. Crypto exchange Bybit will shut its NFT marketplace by April 8. LG’s NFT platform, LG Art Lab, will end operations on June 17.
Earlier this year, Nike announced plans to wind down its NFT-focused studio, RTFKT, while Kraken has also exited the sector.
Despite the downturn, industry analysts say NFTs may continue to evolve in sectors such as gaming, digital art, and asset tokenisation.