Bybit Shuts Down NFT Marketplace as Trading Volumes Plummet

Cryptocurrency exchange Bybit is ceasing operations for its non-fungible token (NFT) marketplace, along with its Inscription Marketplace and initial decentralized exchange offering initiative, effective April 8th. This move is part of the exchange's strategy to streamline its offerings amidst a significant downturn in the NFT market.

NFT Marketplace Closure Amidst Market Downturn

Bybit announced on April 1st that its NFT marketplace would shut down on April 8th at 4:00 pm UTC. This decision aligns with a broader trend in the NFT space, as evidenced by similar moves from other major platforms like X2Y2. The exchange cited efforts to "streamline our offerings" as the reason for these closures.

Declining NFT Trading Volumes

The non-fungible token market has experienced a substantial decline in trading activity. Daily NFT trading volume has fallen by approximately 70% over the past year, dropping from over $18 million to $5.34 million. When compared to the peak on December 17, 2024, when volumes exceeded $113.6 million, the decrease is even more dramatic, with volumes falling by over 95%.

Shifting Market Dynamics

Experts suggest that the NFT market is transitioning from a speculative, collectible-focused phase to one emphasizing utility. Charu Sethi, president at Unique Network, noted that NFTs are entering a new growth era as foundational infrastructure for gaming, AI, fan engagement, and content authentication. This shift indicates a move away from purely trading-based interest towards practical applications.

Investor Interest and Project Performance

Weak investor interest is impacting various NFT projects. For instance, the Gutter Cat Gang (GCG) project reportedly only attracted 3.66 Ether (ETH), approximately $6,800, in its GANG token sale on Apechain, falling significantly short of its $1 million target. While the team attributed this to a "technical issue," others pointed to low interest in the token. Despite the overall slump, some projects like Doodles, Milady Maker, and Pudgy Penguins have shown resilience and outperformed expectations.

Key Takeaways

• Bybit is shutting down its NFT and Inscription Marketplaces on April 8th.

• The decision is attributed to declining trading volumes and a strategy to streamline offerings.

• The broader NFT market has seen a significant drop in daily trading volume, over 95% from its peak.

• The market is shifting from speculative collectibles to utility-based applications.

• While many projects struggle, some like Doodles and Pudgy Penguins continue to perform well.

Sources

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