X2Y2 NFT Marketplace Shuts Down Amid Trading Volume Collapse, Shifts Focus to AI

X2Y2, once a prominent player in the NFT marketplace arena, has announced its closure effective April 30, 2025, following a significant decline in trading volumes. The platform, which launched in early 2022, will pivot towards developing AI-powered decentralized financial tools, marking a new chapter for its team.

Key Takeaways

• X2Y2 will cease operations on April 30, 2025, after three years in the NFT market.

• The platform experienced a staggering 90% drop in trading volume from its peak.

• Plans are underway to transition to a new project focused on AI and decentralized finance.

• The X2Y2 token has seen a dramatic decline in value, losing nearly 90% over the past year.

The Rise and Fall of X2Y2

X2Y2 launched in February 2022 and quickly became a significant competitor to OpenSea, achieving an all-time trading volume of $5.6 billion. At its peak in May 2022, the marketplace recorded a monthly trading volume of $209 million. However, the NFT market has since faced a downturn, with X2Y2's trading volume plummeting to just $53.6 million over the past year.

The decline in trading activity has been attributed to several factors, including increased competition from newer platforms like Blur and a general deflation in the NFT market. The founder, known as TP, emphasized the importance of network effects for marketplace success, stating, "Marketplaces live or die by network effects. After three years, it’s clear it’s time to move on."

Transitioning to AI

Despite the shutdown of its NFT marketplace, X2Y2 is not disappearing entirely. The team is pivoting towards artificial intelligence, which TP describes as the "biggest paradigm shift we’ll see in our lifetimes." The new project aims to create a decentralized AI platform that allows users to earn yields from their assets, regardless of market conditions.

TP elaborated on the vision for the new platform, stating, "Picture this: yields in a permissionless way, powered by AI. It’s decentralized, it’s innovative, and it’s built to matter—bull or bear, cycle after cycle."

The Future of NFTs and AI

The decision to pivot towards AI reflects a broader trend in the NFT space, where platforms are increasingly focusing on utility rather than speculation. Experts suggest that the future of NFTs lies in their integration into real-world applications, such as gaming and digital identity, rather than relying solely on marketplace trading.

Charu Sethi, president at Unique Network, noted that the speculative phase of NFTs is over, and the focus is shifting towards building communities and market resilience. Similarly, Alexander Salnikov, co-founder of Rarible, emphasized that the next wave of NFT projects will be driven by strong use cases.

Conclusion

As X2Y2 prepares to close its doors on its NFT marketplace, the transition to AI represents a significant shift in strategy. The team aims to leverage their experience in the NFT space to create innovative solutions in the rapidly evolving field of artificial intelligence. While the NFT market faces challenges, the potential for integration with AI could pave the way for new opportunities in the future.

Sources

• NFT Marketplace X2Y2 Shuts Down as It Pivots Towards Crypto AI, NFTgators.

• NFT Marketplace X2Y2 to Shut Down After Trading Volumes Collapsed, CoinDesk.

• NFT marketplace X2Y2 to shut down amid dwindling trading volume, plans crypto AI pivot, The Block.

• NFT marketplace X2Y2 shuts down after 3 years, pivots to AI, Cointelegraph.