Bybit Bids Farewell to NFT Marketplace Amid Market Turmoil

Bybit, a leading cryptocurrency exchange, has announced the closure of its NFT marketplace and Initial DEX Offering (IDO) services, effective April 8, 2025. This decision comes in the wake of a significant market decline and a major security breach that resulted in the loss of $1.5 billion in assets.

Key Takeaways

• Bybit will shut down its NFT marketplace and IDO services on April 8, 2025.

• The closure follows a $1.5 billion hack attributed to North Korean hackers.

• The NFT market has seen a dramatic decline, with trading volumes dropping over 95% since late 2022.

• Other major platforms, including Kraken and X2Y2, have also exited the NFT space recently.

The Decline of the NFT Market

The NFT market, once a booming sector within the cryptocurrency landscape, has faced a significant downturn. Daily trading volumes have plummeted from over $18 million a year ago to just $5.34 million, marking a staggering 70% decline. This downturn is even more pronounced when compared to the peak trading volume of $113.6 million recorded in December 2024.

The decline in interest is reflected in the performance of once-popular NFT collections. For instance:

• CryptoPunks: Floor price dropped from 125 ETH in August 2021 to 42.59 ETH.

• Bored Ape Yacht Club: Prices fell from 153.7 ETH in May 2022 to just 15.35 ETH today.

Bybit's Strategic Shift

Bybit's decision to shutter its NFT marketplace is part of a broader strategy to streamline its offerings amid declining market interest. The exchange has encouraged users to manage their assets before the shutdown date, providing alternatives for NFT trading on platforms like OpenSea and Blur.

The closure of Bybit's NFT services is not an isolated incident. Other companies, including Kraken and X2Y2, have also announced similar exits from the NFT space, citing declining trading volumes and shifting market dynamics. For example:

• Kraken: Closed its NFT marketplace in February 2025 to focus on new products.

• X2Y2: Announced plans to cease operations by the end of April 2025 due to a 90% drop in trading volume.

The Future of NFTs

Despite the current downturn, some industry experts believe that the NFT market is evolving rather than collapsing. The focus is shifting from speculative trading to utility-based applications, with potential growth areas in gaming, AI, and content authentication. Notable collections like Doodles and Pudgy Penguins have shown resilience, outperforming expectations in a challenging market.

As the NFT landscape continues to change, platforms are exploring new opportunities beyond digital collectibles. This shift suggests that while the speculative boom may be over, the underlying technology of NFTs could still play a significant role in various sectors moving forward.

In conclusion, Bybit's closure of its NFT marketplace marks a significant moment in the ongoing evolution of the cryptocurrency and NFT markets. As major players exit the space, the industry is left to navigate the challenges of a declining market while seeking new avenues for growth and innovation.

Sources

• Bybit shuts down NFT and IDO platforms, Digital Watch Observatory.

• ByBit Halts Operations Of Its NFT Platform, Inscription Marketplace, TronWeekly.

• Bybit shutters NFT marketplace as institutional faith dwindles amid broad market decline, The Block.

• Bybit to shut down NFT marketplace as trading volumes decline, Cointelegraph.

• End of an Era? Bybit Becomes Latest Crypto Giant to Ditch NFTs, MoneyCheck.