Global electronics giant LG has announced the closure of its NFT marketplace, LG Art Lab, due to a significant decline in the NFT market. Launched in September 2022, the platform allowed users to trade and display digital art on smart TVs. The shutdown reflects a broader trend of NFT platforms closing as the market struggles to regain its footing.
Key Takeaways
LG Art Lab will cease operations on June 17, 2025.
The NFT market has seen a drastic drop in trading volume, now under $100 million weekly.
Users will have their NFTs returned to their wallets by the end of April 2025.
The closure is part of a larger trend, with other platforms like Kraken and Nike also shutting down their NFT services.
Background of LG Art Lab
LG Art Lab was introduced during the height of the NFT craze, aiming to provide a unique platform for users to buy, sell, and enjoy digital artwork directly from their televisions. The platform initially operated on the Hedera network and later expanded to include Ethereum, allowing for a wider range of digital assets.
At its launch, LG Art Lab featured various digital art pieces, with prices ranging from affordable animations to high-value single-edition artworks. The platform facilitated transactions through LG's crypto wallet app, Wallypto, making it accessible for users to engage with the NFT market.
Reasons for Closure
The decision to shut down LG Art Lab comes after careful consideration of the current market conditions. The NFT market, which peaked at $3.24 billion in weekly trading volume in August 2021, has since plummeted to less than $100 million. This decline has prompted many companies to reevaluate their involvement in the NFT space.
In a statement, LG expressed that it is shifting its focus to explore new opportunities, indicating a strategic pivot away from the NFT sector. The company aims to adapt to the evolving landscape of digital assets and consumer preferences.
Industry Impact
LG's closure of its NFT marketplace is part of a larger wave of shutdowns in the industry. Other notable closures include:
Kraken: Closed its NFT marketplace in February 2025 to streamline resources.
Nike's RTFKT: Announced its shutdown in December 2024, citing similar market challenges.
These closures highlight the difficulties faced by NFT platforms as they navigate a rapidly changing market environment. The initial excitement surrounding NFTs has waned, leading to a reassessment of their viability as a mainstream digital asset.
Conclusion
As LG prepares to close its Art Lab platform, the company joins a growing list of businesses reevaluating their strategies in the NFT space. The decline in market activity raises questions about the future of NFTs and whether they can regain their previous momentum. For now, LG's decision reflects a cautious approach to innovation in a challenging economic landscape.
Sources
LG shuts down NFT platform as market volumes decline, StartupNews.fyi.
LG to shut down NFT platform, joining wave of closures in the sector, The Block.
LG’s NFT marketplace for TVs is shutting down, The Verge.