NFT marketplace X2Y2 shuts down as trading volume drops 90%

X2Y2 is closing its marketplace after three years, acknowledging the decline of NFT trading and shifting focus to AI.

NFT marketplace X2Y2, which was launched as an alternative to OpenSea and LooksRare, will shut down on April 30, citing a steep decline in trading activity and the challenges of staying competitive.

In a March 31 statement, the project’s mysterious TP founder said the X2Y2 team is “sunsetting X2Y2 as an NFT marketplace” after three years in the industry, adding that the “90% shrinkage of NFT trading volume from its peak in 2021 is for sure one of the many reasons.”

“The NFT chapter taught us a lot — most of all, that lasting value beats chasing trends. That lesson’s why we’re drawing a line here, not a pause or a maybe, but a full stop on X2Y2 as we knew it.”

TP, founder of X2Y2

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X2Y2, which was once positioned as a key player in the space, reaching $5.6 billion in all-time trading volume and peaking as the second-largest NFT marketplace behind OpenSea, has since shrunk to $53.6 million, per data from Token Terminal.

The platform’s smart contracts will remain operational, allowing users to interact with them, but the team warned that the shutdown could impact its token.

“I know this might sting, especially when it comes to token price. X2Y2 tokens were tied to this NFT vision, and as we close this chapter, that’s likely to hit hard. I feel that with you, and I’m not here to sugarcoat it.”

TP, founder of X2Y2

Following the news, the X2Y2 token dropped 6.95%, per data from crypto price aggregators.

While closing the marketplace, X2Y2 is not completely stepping away from crypto. The team hinted at a pivot into AI, calling it “hands down the biggest paradigm shift we’ll see in our lifetimes.” While no details were given, the team described their next project as something that “takes everything we’ve learned and aims higher,” focusing on “yields in a permissionless way, powered by AI.”

Read more: NFT marketplace X2Y2 follows rival, OpenSea in enforcing royalties

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