TLDR
- Bybit will shut down its NFT, Inscription Marketplaces, and IDO product on April 8, 2025
- NFT trading volume has collapsed over 95% from peak levels in 2021
- Q1 2025 NFT sales fell 63% year-over-year to $1.5 billion
- Multiple major platforms including X2Y2, Kraken, and LG are also exiting the NFT space
- The shutdown comes weeks after Bybit suffered a $1.4 billion hack in February
Cryptocurrency exchange Bybit announced the closure of its NFT and Inscription marketplaces effective April 8, joining a growing list of major platforms abandoning the once-thriving digital collectibles space. The decision comes amid a dramatic market downturn that has seen NFT trading volumes plummet by over 95% since their 2021 peak.
In an April 1 announcement, Bybit informed users that its NFT marketplace will cease operations at 4:00 pm UTC on April 8. The exchange will simultaneously shut down its Inscription Marketplace and initial decentralized exchange offering (IDO) initiatives as part of efforts to “streamline offerings and enhance user experience.”
Users have been advised to transfer their assets from Bybit web3 wallets before the deadline. After this date, the platform will become completely inaccessible.
Industry-Wide Retreat
Bybit is far from alone in its exit from the NFT space. Ethereum NFT marketplace X2Y2 announced earlier this week that it would wind down operations after processing $5.6 billion in lifetime trading volume.
“The 90% shrinkage of NFT trading volume from its peak in 2021 is for sure one of the many reasons,” X2Y2 stated. “After three years, it’s clear it’s time to move on.” The X2Y2 team indicated they are pivoting to focus on artificial intelligence.
Other major players have made similar moves. Kraken shut down its NFT marketplace on February 27, citing a desire 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 traditional technology companies are retreating. LG Electronics 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 in Free Fall
The mass exodus comes as NFT market metrics show a sector in severe decline. Daily NFT trading volume has fallen from over $18 million a year ago to just $5.34 million today—a 70% decrease.
The contrast is even more stark when compared to the market’s peak. On December 17, 2024, trading volume exceeded $113.6 million. Since then, volume has collapsed by over 95%.
Total NFT sales fell to $1.5 billion in the first quarter of 2025, down 63% from the $4.1 billion recorded in the same period last year. Sales in March alone dropped 76% compared to March 2024.
The number of active wallets engaging with NFTs has also cratered. From over half a million at the market’s height, fewer than 20,000 wallets now actively trade NFTs in 2025.
Value Evaporation
Once-prestigious NFT collections have seen their valuations evaporate. CryptoPunks now trade at a floor price of 42.59 ETH, down nearly 66% from their August 2021 high of 125 ETH.
Bored Ape Yacht Club NFTs have fared even worse. Their floor price has plunged 90% from a May 2022 peak of 153.7 ETH to just 15.35 ETH today.
Recent project launches have also struggled. The Gutter Cat Gang (GCG) reportedly saw weak interest in its GANG token launch on Apechain on March 31. Data shared online indicated the project attracted only 3.66 ETH (approximately $6,800) in its token sale—far short of its $1 million target.
Isolated Bright Spots
Despite the overall market collapse, a few projects have bucked the trend. Pudgy Penguins saw a 13% increase in sales during the first quarter of 2025, reaching $72 million. Doodles benefited from a recent McDonald’s partnership, achieving $32 million in quarterly sales.
These success stories remain exceptions in a market that has largely failed to maintain the widespread appeal it once enjoyed.
Post-Hack Reorganization
For Bybit specifically, the NFT marketplace closure follows a major security breach in February 2025. The exchange was targeted by North Korea-linked hackers who stole an estimated $1.4 billion in digital assets—the largest crypto theft to date.
With much of the stolen cryptocurrency still unrecovered, the exchange appears to be reevaluating its risk exposure and operational focus. The FBI has attributed the attack to North Korean hackers.