X2Y2 Shuts Down Its NFT Marketplace After Trading Volumes Plummet 90%

The shutdown follows a steep decline in NFT trading volumes. X2Y2, once a strong competitor to OpenSea and Blur, peaked at $209 million in monthly trading volume in May 2022.

X2Y2, a prominent NFT marketplace that emerged as a competitor to OpenSea and Blur, is shutting down its platform.

The move comes after a significant drop in NFT trading volumes. X2Y2, once a major player with monthly trading volumes reaching $209 million in May 2022 on Blur and OpenSea, has seen a 90% decline in activity due to competition and the overall downturn in the NFT market.

Announcing the closure on X2Y2’s Discord server, founder TP explained the decision, saying, “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.” He highlighted that the team is closing the chapter on X2Y2 to embark on a new journey.

Despite shutting down the marketplace, X2Y2 is not exiting the crypto space. The team is shifting its focus to developing new financial tools within the crypto ecosystem, which they believe will have long-term value, especially in a bear market.

Describing the next project, TP said, “We're launching something decentralized, innovative, and built to matter across market cycles. A project X2Y2 wouldn't invest in, but one that we're building because we believe in it deeply.” He teased the company’s new endeavor as a platform to generate returns in a permissionless manner.

“We're closing the chapter on X2Y2 and inviting you to join us in writing the next one. It's an opportunity to create something even greater together,” TP invited the community to follow their new journey.

Another NFT platform shutting down is LG, which will be discontinuing its NFT marketplace, LG Art Lab, on June 17.

Launched in September 2022, LG Art Lab enabled users to display NFTs on LG smart TVs and engage with artists through exhibitions and collaborations. The company mentioned changing market conditions as the reason for shutting down the platform.

Despite the closure of platforms like X2Y2 and LG Art Lab, interest in NFTs remains evident.

Events like NFT Paris 2025 reportedly drew around 20,000 attendees, including investors and developers, showcasing the ongoing activity in the NFT space.

Some within the industry view the current decline as part of a natural cycle of growth, correction, and reinvention, with a shift towards real-world use cases for NFTs.

"NFTs remain one of the most powerful primitives in crypto. They're like Legos to build anything you want. The best projects are pivoting to focus on real-world use cases and building out impactful protocols that will last for decades to come. We're just getting started," said Alexander Salnikov, co-founder of Rarible.

As market conditions change, crypto companies are pivoting to search for new opportunities. While AI-driven financial tools are gaining interest, it remains to be seen whether X2Y2 will succeed in its next venture.