Bybit Shuts Down Its NFT and Inscription Marketplaces

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.

Crypto exchange Bybit will be closing its NFT and Inscription marketplaces on April 8, marking the latest move by a major platform to abandon the digital collectibles space amid a dramatic market downturn.

In an email to users on Sunday, Bybit announced the upcoming closure of its NFT services at 4:00 pm UTC on April 8.

The exchange will also be shutting down its initial decentralized exchange offering (IDO) initiatives as part of efforts to “streamline offerings and enhance user experience.”

Those who still have assets in their Bybit web3 wallets are advised to transfer them by the deadline. After this date, the platform will become completely inaccessible.

Industry-Wide Retreat

Bybit is the latest major cryptocurrency exchange to exit the NFT space. Earlier this week, Ethereum NFT marketplace X2Y2 announced that it would be winding 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 said they are pivoting to focus on artificial intelligence.

Other major players have also pulled out of the NFT market. Cryptocurrency exchange Kraken shut down its NFT marketplace on February 27, saying it’s reallocating resources to launch “new products and services.”

Nike-owned Web3 company RTFKT also ceased operations in January following steep declines in the value of its NFT collections. Traditional technology company LG Electronics also plans to close its NFT platform, LG Art Lab, on June 17.

"It feels like the right time to shift our focus and explore new opportunities," the company said in an email to users.

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%.

Credit: CoinGecko

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.

Recently launched projects have also struggled. The Gutter Cat Gang (GCG) reportedly saw weak interest in its GANG token launch on Apechain on March 31.

According to reports, the project only managed to attract 3.66 ETH (approximately $6,800) in its token sale. The project was reportedly aiming to raise $1 million.

However, the project's team stated that they are not planning to close the token sale and will continue to accept contributions. The report also mentioned that GCG is planning to launch a collection of 6,666 NFTs on Apechain in the second quarter of 2025.

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 pivoting its risk exposure and operational focus. The FBI has previously attributed the attack to North Korean hackers.