X2Y2 NFT marketplace will shut down on April 30

X2Y2, once a leading marketplace for non-fungible tokens (NFT) will shut on April 30, ending a three-year run that saw the exchange briefly trail only OpenSea in trading volume during the NFT boom of 2021.

X2Y2, a non-fungible token (NFT) marketplace that briefly became the second-largest platform by trading volume in 2021, will shut down on April 30, marking the end of a three-year journey.

The decision comes as the broader NFT market continues to deflate from the highs of 2021. In a blog post, the team noted that trading volumes have decreased by nearly 90% from their peak, and X2Y2 has faced difficulties sustaining the network effects crucial for marketplace success.

"Marketplaces live or die by network effects," founder TP wrote in the post. After three years, it's clear it's time to move on."

X2Y2, which started in early 2020, has reached $5.6 billion in all-time trading volume, according to data from TokenTerminal. Smart contracts tied to the platform will remain operational, but users are advised to withdraw assets or transfer activity by the shutdown date.

The price of the marketplace's native X2Y2 token has decreased by 10.7% following the announcement, now trading at slightly over $0.001. The token has lost 97.7% of its value over the past two years.

The team is pivoting to a new project focused on AI-powered, decentralized financial tools, aiming to provide "the next generation of DeFi primitives."

As X2Y2 prepares for closure, the team expressed gratitude to the community for their support and contributions to the platform.

"We're grateful for the incredible journey and the irreplaceable memories created with all of you," the team added.