NFT marketplace X2Y2 shuts down as trading volume drops 90%

X2Y2 is closing its market after three years, acknowledging the decline of NFT buying and selling and shifting focus to AI.

NFT market X2Y2, which was launched as an alternative choice to OpenSea and LooksRare, will shut down on April 30, citing a steep decline in buying and selling exercise and the challenges of staying aggressive.

In a March 31 assertion, the venture’s mysterious TP founder stated the X2Y2 staff is “sunsetting X2Y2 as an NFT market” after three years within the business, including that the “90% shrinkage of NFT buying and selling quantity from its peak in 2021 is for positive one of many many causes.”

“The NFT chapter taught us so much — most of all, that lasting worth beats chasing traits. That lesson’s why we’re drawing a line right here, not a pause or a possibly, however a full cease on X2Y2 as we knew it.”

TP, founding father of X2Y2

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X2Y2, which was as soon as positioned as a key participant within the house, reaching $5.6 billion in all-time buying and selling quantity and peaking because the second-largest NFT market behind OpenSea, has since shrunk to $53.6 million, per information from Token Terminal.

The platform’s sensible contracts will stay operational, permitting customers to work together with them, however the staff warned that the shutdown may affect its token.

“I do know this may sting, particularly in relation to token worth. X2Y2 tokens have been tied to this NFT imaginative and prescient, and as we shut this chapter, that’s prone to hit laborious. I really feel that with you, and I’m not right here to sugarcoat it.”

TP, founding father of X2Y2

Following the information, the X2Y2 token dropped 6.95%, per information from crypto worth aggregators.

Whereas closing {the marketplace}, X2Y2 will not be fully stepping away from crypto. The staff hinted at a pivot into AI, calling it “palms down the most important paradigm shift we’ll see in our lifetimes.” Whereas no particulars got, the staff described their subsequent venture as one thing that “takes the whole lot we’ve realized and goals increased,” specializing in “yields in a permissionless method, powered by AI.”

Learn extra: NFT market X2Y2 follows rival, OpenSea in imposing royalties