Crypto exchange Kraken has announced the closure of its NFT marketplace. Starting November 27, users will no longer be able to list, buy, or sell NFTs on the platform. The service will remain operational for asset withdrawals only until February 27, 2025, according to The Block.
Kraken representatives stated that the closure is due to resource reallocation. The company plans to focus on developing new products and services, including currently unannounced initiatives. Kraken noted that all users have been informed of the upcoming changes, and the exchange's team is assisting with transferring NFTs to Kraken wallets or external platforms.
Kraken first announced the creation of its NFT marketplace in December 2021 and launched it in beta in November 2022. However, interest in NFTs has since declined. The reasons for this downturn we reported here. According to The Block, since April 2024, weekly NFT trading volumes have not exceeded $200 million.
Only a few projects have shown temporary spikes in activity. For instance, in mid-November, the floor price of the CryptoPunks collection rose to $100,000 for the first time since June. However, this was likely not enough to sustain interest in the platform.
The closure of the NFT marketplace by one of the largest crypto exchanges highlights how quickly trends in the industry can shift. With declining interest in NFTs, even major companies are being forced to rethink their strategies.