- X2Y2 will close its marketplace operations on April 30, 2025.
- NFT trading volumes have plunged 90% since their 2021 peak.
- The team will focus on AI-powered decentralized infrastructure next.
Ethereum-based non-fungible token (NFT) marketplace X2Y2 is set to shut down on April 30, 2025. Founded in February 2022, it was the second-largest trading platform in the market at that time after OpenSea. Token Terminal data shows that X2Y2 achieved a $5.6 billion total trading volume at the time of its apex.
However, NFT activity has declined in all sectors. The platform now processes approximately $1 million in weekly volume, which is a 90% decline from its 2021 activity level. Consequently, X2Y2 will end marketplace operations.
The team shared the update in a March 31 blog post. It outlined a decrease in activity and problems maintaining competitive advantage. TP, the company’s founder, noted that “marketplaces thrive or perish on network effects.”
Smart Contracts Stay Live, But Front-End Ends
However, X2Y2 smart contracts shall remain functional during the shutdown meaning interaction with them remains possible for users. However, the front end of the website will not be accessible after the 30th of April.
The team also elaborated on issues surrounding the X2Y2 token. TP said the token was “tied to this NFT vision.” He also admitted that the shutdown “might sting” holders in some way. The token declined over 97% in price over two years.
The closure of X2Y2 is similar to the changes taking place in the broader NFT market. Since December 2024, the popularity of NFTs has decreased by as much as 63%, according to the data from DappRadar. Analyst Sara Gherghelas attributed the market’s decline to its connection with the overall crypto trends. The decline in the token values brought about a domino effect on collectibles related to them.
Besides, the movements of the broader markets are also similar across cycles. The ICO mania of 2017 collapsed after the majority of the projects failed during the time of the bear market. Similarly, the ‘mania’ of NFTs in 2020-2021 is now over, and the majority of the collectibles have crashed their prices.
The Shift Toward AI and Decentralized Tools
The company has made it clear that it has no intention of departing from the crypto sphere. The team is now set on a new course. This new project aims to develop tools that are decentralized using the concept of artificial intelligence.
As indicated in the statement, the project will be “permissionless” and will be powered by artificial intelligence systems. The team plans on offering real utility without the need for hype. There was no further elaboration given, but the purpose is to unlock lasting value.
TP referred to this as a “full stop” rather than a break or a pause. He stated that the team has three years of experience to bring into the exercise. The next step will combine the learnings from NFTs with the potential growth of AI. The founder encouraged the community to stay tuned for the next updates. He will engage his social media platforms to reveal the new direction.
The shutdown of X2Y2 is occurring at a time when NFT markets have been shrinking. From the $5.6 billion in all-time volume, the platform currently has a market value of $53.6 million. This follows a decline in the overall market for digital collectibles.
Following the announcement of the shutdown, X2Y2 declined 15%, dropping the price to $0.001370, according to Coinmarket Cap data. Additionally, its market cap and trading volume have declined to $246K and $157K, respectively.
