X2Y2 NFT marketplace shuts down, team pivots to new crypto financial tools

X2Y2, once a strong competitor to OpenSea and Blur, peaked at $209 million in monthly trading volume in May 2022. However, competition and the overall downturn in the NFT market led to a 90% drop in activity.

X2Y2, the NFT marketplace that rose to prominence as a key competitor to OpenSea and Blur, is shutting down operations. The move comes after a significant decline in NFT trading volumes and increasing competition in the marketplace segment.

Founded in 2020, X2Y2 quickly gained traction with its low transaction fees and advanced trading features. At its peak in May 2022, the platform processed $209 million in monthly trading volume, outperforming even Blur. However, despite efforts to maintain its position, X2Y2 faced challenges from rivals like SeaPay and the overall downturn in the NFT market led to a 90% drop in activity.

“Marketplaces live or die by network effects. We fought to be #1, but after three years, it’s clear it’s time to move on,” said TP, founder of X2Y2.

While closing its marketplace, X2Y2 is not leaving the crypto space. The team is shifting its focus to new financial tools within crypto, which they believe will have long-term value. TP described the next project as “decentralized, innovative, and built to matter across market cycles.” The company has hinted at developing a new platform focused on generating returns in a permissionless way.

“We’re closing the X2Y2 marketplace but not X2Y2. We’ll be announcing something new soon, something more impactful for the long term,” he added.

Earlier this month, LG also announced that it will discontinue its NFT marketplace, LG Art Lab, on June 17 due to changing market conditions.

Launched in September, LG Art Lab enabled users to display NFTs on smart TVs and collaborate with artists. The platform was part of LG’s efforts to integrate Web3 technologies into its consumer electronics devices.

Despite the closures, interest in NFTs remains high. NFT Paris 2025, which took place last week, drew around 20,000 attendees, including investors and developers interested in the latest projects and trends in the NFT space.

Some in the industry see the current decline as part of a natural cycle of growth, correction, and reinvention in the NFT sector.

“NFTs remain one of the most powerful primitives in crypto. We’re going to see the pivot to real-world use cases in the next stage of the journey,” said Rarible co-founder Alexander Salnikov.

As crypto companies navigate shifting market conditions, they are searching for new opportunities to create lasting value. With AI-driven financial tools gaining attention, it remains to be seen whether X2Y2 will find success in its next venture.