LG has announced the closure of its NFT platform LG Art Lab after three years of operation. This decision follows the declining interest in digital art.
LG Ends Its NFT Venture After Three Years
LG Art Lab was launched in September 2022 to make NFT art more accessible. The platform partnered with renowned digital artists, such as sculptor Barry X Ball, showcasing unique creations that could be displayed on LG's smart screens. However, as interest waned, the platform struggled, leading to its closure. All collectibles will be returned to users by the end of April, with full closure set for June 17.
The Broader Collapse of NFT Marketplaces
LG Art Lab is not alone in its shutdown. Companies like Kraken's crypto exchange are also closing their NFT platforms due to declining interest. Nike’s RTFKT, specializing in digital fashion and wearable NFTs, announced its closure plans last December. The digital art market has seen a sharp decline, with trading volumes dropping from a peak of $3.24 billion in August 2021 to under $100 million per week in 2025.
The Rise and Fall of the NFT Market
NFTs rose to popularity in the early 2020s, with the COVID-19 pandemic fueling their momentum. Collections like CryptoPunks, Bored Ape Yacht Club, and Pudgy Penguins became famous, with some selling for millions. However, interest has waned, and the overall crypto market uncertainty has made survival difficult for many NFT platforms. Despite the market's decline, some companies are still exploring opportunities in digital assets and blockchain technology.
The closure of LG Art Lab and similar platforms illustrates the challenges facing the digital art market. Companies are re-evaluating their involvement amid the waning interest in NFTs.
