Crypto exchange Bybit has announced it will close its NFT marketplace on April 8. According to the official statement, users must withdraw their assets in advance to avoid potential loss. The platform explained that the decision stems from its intent to refocus on its core business — digital asset trading.
The closure follows a major security incident in February, in which $1.460 billion worth of cryptocurrencies were stolen in what is considered the largest known digital asset theft to date. Despite its exit from the NFT space, Bybit reaffirmed its commitment to blockchain development and promised to strengthen its security measures following the breach.
User Notification
Bybit has warned NFT holders that they need to transfer their non-fungible tokens to external wallets before April 8. After this date, the platform will cease to support any operations involving digital collectibles. All other products and services offered by the exchange will continue to operate normally.
NFT Market Slump
Bybit’s decision coincides with a broader decline in NFT market activity. Trading volumes on leading platforms have dropped significantly in recent months. However, some players in the industry remain optimistic about the sector.
At the end of March, investment firm Canary Capital filed an application with the U.S. Securities and Exchange Commission (SEC) to launch a new exchange-traded fund (ETF) focused on the NFT market. According to filings, the fund will invest directly in Pudgy Penguins NFTs and the utility token PENGU. The portfolio may also include other crypto assets, such as Ethereum (ETH) and Solana (SOL), when needed for operations related to the main tokens.
Market Contraction Continues
Bybit is not the only company exiting the NFT sector. On April 30, X2Y2 — one of the earliest challengers to OpenSea on Ethereum — will also shut down. The project's anonymous founder, known by the pseudonym TP, announced in a blog post that the team could no longer sustain operations due to the decline in digital art market activity.
Previously, on November 27, 2024, crypto exchange Kraken also announced it was shutting down its own NFT marketplace, citing a need to reallocate resources to other areas.
In December 2024, RTFKT — a digital collectible brand owned by Nike — ceased operations following a sharp drop in the value of its collections.
In March 2025, LG made a similar move, closing its digital art platform LG Art Lab.
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