Bybit Shuts Down NFT Marketplace Amid Market Turmoil
Apr 6
2 min read
Bybit, a prominent cryptocurrency exchange, has announced the closure of its NFT marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages, effective April 8, 2025. This decision comes as the NFT market continues to experience a significant decline in interest and trading volumes, prompting Bybit to streamline its offerings.
Key Takeaways
Bybit will cease operations of its NFT marketplace on April 8, 2025.
The NFT market has seen a dramatic decline, with trading volumes dropping over 95% since 2021.
Other platforms, including Kraken and LG Electronics, have also exited the NFT space recently.
Security concerns following a major hack have further pressured Bybit's decision.
The Decline of the NFT Market
The NFT market, once celebrated for its explosive growth, has faced a steep downturn. Trading volumes for NFTs have plummeted, with data indicating a staggering 63% year-over-year drop in total sales during the first quarter of 2025. The number of active wallets engaging in NFT trades has decreased from over half a million to less than 20,000.
Trading Volume Trends:2021 Peak: Over $18 million daily trading volume.Current Volume: Approximately $5.34 million daily.Sales in Q1 2025: $1.5 billion, down from $4.1 billion in Q1 2024.
Reasons Behind Bybit's Closure
Bybit's decision to shut down its NFT marketplace is influenced by several factors:
Market Retreat: The NFT sector has seen a significant decline in both institutional and retail interest, leading to reduced trading activity.
Security Breach: In February 2025, Bybit suffered a major hack attributed to North Korean cybercriminals, resulting in the theft of approximately $1.4 billion in digital assets. This incident has raised concerns about the security of digital asset platforms.
Restructuring Efforts: Bybit aims to streamline its offerings and focus on more profitable areas of its business, reflecting a broader trend among NFT platforms.
Industry Impact and Future Outlook
The closure of Bybit's NFT marketplace is part of a larger trend, with several other platforms, including Kraken and LG's Art Lab, also withdrawing from the NFT market. This shift indicates a potential turning point for NFTs, moving from speculative trading to utility-based applications in areas such as gaming and digital content.
Notable NFT Projects: While many collections have struggled, a few have managed to maintain or even grow their sales, such as:Pudgy Penguins: 13% sales increase in Q1 2025, reaching $72 million.Doodles: Benefited from a partnership with McDonald's, achieving $32 million in quarterly sales.
Conclusion
The closure of Bybit's NFT marketplace underscores the challenges facing the NFT sector, characterized by declining interest, security risks, and a shift in market dynamics. As the industry evolves, it remains to be seen how NFT platforms will adapt to the changing landscape and whether they can regain the momentum that once defined this digital asset class.
Sources
Tech in Asia - Connecting Asia's startup ecosystem, Tech in Asia.
Duane Morris LLP - NFT Bill Needs Refining To Effectively Regulate Digital Assets, Duane Morris LLP.
Bybit shuts doors on NFT marketplace as interest wanes, CryptoSlate.
Bybit to shut down NFT marketplace as trading volumes decline — TradingView News, TradingView.
Bybit Shuts Down NFT Marketplace Amid Market Decline, Born2Invest.