X2Y2, one of the largest NFT marketplaces, has announced plans to shut down operations on April 30, 2025. The company is now pivoting toward artificial intelligence.
X2Y2 Closure and New Focus
Since its launch in February 2022, X2Y2 quickly emerged as a strong competitor to OpenSea, with its trading volume exceeding $5.6 billion. Nonetheless, declining trading volumes and competition from new platforms like Blur have made it difficult for X2Y2 to maintain its standing. The founder, known as TP, stated that the team struggled hard but ultimately felt the need to move away from the NFT marketplace.
Impact on Users and Token Price
Despite the platform's shutdown, X2Y2 smart contracts will still be operational, allowing users to continue their interactions. However, the announcement caused a 7% drop in the token price, adding to an overall 89% decline over the past year.
Challenges in the NFT Market
Other NFT platforms are also facing challenges. Art Blocks and SuperRare have seen sharp declines in trading volume and sales. Similarly, Foundation has imploded. The NFT market is shifting from speculation to a more discerning, value-oriented marketplace.
The shutdown of X2Y2 and troubles faced by other platforms highlight challenges in the NFT space. However, the company is focusing on opportunities offered by artificial intelligence, considering it as the next frontier of development.
