Bybit has decided to close its NFT marketplace as part of efforts to streamline operations amid declining interest and trading activity in the market.
Bybit's Strategic Adjustment
In a statement, Bybit confirmed its decision to discontinue its NFT Marketplace along with Inscription Marketplace and IDO projects. The decision is driven by the need to focus on the company's main offerings. This change aligns with the broader realization that the NFT boom of 2021 might be over, as interest in digital collectibles and ownership has notably declined over the past years.
NFT Market Slows Down, Firms Struggle
Bybit's decision, shared in a recent post, reflects the growing challenges in the NFT market. Platforms like Kraken and X2Y2 have followed suit by shutting down their NFT operations. Last month, global electronics giant LG announced its plans to end its NFT platform, LG Art Lab.
Value Drop in High-Profile NFT Collections
High-profile collections such as the Bored Ape Yacht Club once garnered widespread attention and dominated the digital art scene. However, trading volumes for these top collections have dropped significantly. DappRadar, a blockchain analytics firm, reported that trading volumes for the most popular collections have fallen by 95% since the peak of the NFT market in 2021. Similarly, the number of active wallets involved in trading NFTs has plummeted from over half a million to under 20,000.
While NFTs still hold value in certain areas, the initial excitement has waned. The industry must adapt, find new ways to engage with digital assets, and diversify offerings.
