Bybit Closes NFT Marketplace As Interest Dwindles

Bybit, a prominent cryptocurrency exchange, has announced the closure of its NFT marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) services due to a significant decline in interest and trading volumes in the NFT sector. The shutdown will take effect on April 8, 2025, at 16:00 UTC, marking a notable shift in the company's focus back to its core trading operations.

Key Takeaways

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

• The NFT market has seen a dramatic decline, with trading volumes dropping over 95% since 2021.

• Other major platforms, including Kraken and X2Y2, have also ceased NFT operations recently.

• Users are advised to transfer their assets from Bybit's web3 wallets before the shutdown.

Declining Interest In NFTs

The NFT market has experienced a steep decline in interest and trading activity over the past two years. According to data from blockchain analytics firm DappRadar, trading volumes for top NFT collections have plummeted by more than 95% since their peak in 2021. The number of active wallets engaging in NFT trades has also dropped dramatically, from over half a million to fewer than 20,000.

In the first quarter of 2025, total NFT sales fell to $1.5 billion, a stark decrease from $4.1 billion during the same period last year, representing a 63% year-over-year drop. March alone saw a 76% decline in sales compared to the previous year, highlighting the ongoing struggles within the NFT market.

Market Trends and Comparisons

The closure of Bybit's NFT marketplace is part of a broader trend affecting the industry. Other platforms, such as Kraken and LG Electronics' LG Art Lab, have also shut down their NFT services, reflecting a loss of institutional faith in the sector. Popular collections like Bored Ape Yacht Club, once synonymous with NFT hype, are no longer generating significant trading volumes.

Despite the downturn, a few projects have managed to thrive. For instance:

• Pudgy Penguins: Saw a 13% increase in sales in Q1, reaching $72 million.

• Doodles: Benefited from a partnership with McDonald's, achieving $32 million in quarterly sales.

Security Concerns and Operational Focus

Bybit's decision to exit the NFT space comes on the heels of a major security breach in February, where hackers linked to North Korea stole approximately $1.4 billion in digital assets from the exchange. This incident has prompted Bybit to reassess its operational focus and risk exposure, leading to the decision to streamline its offerings.

The exchange's CEO, Ben Zhou, has indicated that the company is still tracking the stolen funds, although much of the crypto remains untraceable due to the use of mixing services by the hackers.

Conclusion

Bybit's closure of its NFT marketplace underscores the challenges facing the NFT sector, characterized by declining demand, falling trading volumes, and increasing security risks. As the market continues to evolve, Bybit's pivot back to core trading operations may reflect a broader industry trend as companies reassess their strategies in a rapidly changing landscape.

Sources

• Bybit shuts doors on NFT marketplace as interest wanes, CryptoSlate.

• 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.

• Bybit to end Web3 NFT Marketplace, Shifts Focus to Core Trading, The Crypto Times.

• Bybit sunsets its NFT marketplace, IDO services, Crypto News.