X2Y2, one of the first Ethereum-based NFT marketplaces to challenge OpenSea, has announced it will cease operations on April 30, 2025. The decision was revealed by the project’s anonymous founder, known as TP, in a blog post published on April 1. The shutdown comes amid a collapse in platform activity and an overall decline in the digital art NFT sector.
According to The Block, the platform peaked in May 2022, just three months after its launch in February 2022, with over $209 million in monthly trading volume. However, the rise of aggressive competitors like Blur soon led to a steep decline in usage.
A Full Shutdown, Not a Pause
TP made it clear that this is a final decision, not a temporary halt. In the blog post, they wrote:
“We fought for the number one spot, but after three years, it’s clear that continuing is meaningless. Platforms live or die by network effects. We realized that long-term value matters more than short-term hype.”
While X2Y2’s smart contracts will remain functional, allowing users to interact with them directly, the team will no longer maintain or support the marketplace. The team also warned that the X2Y2 token is likely to suffer as a result of the shutdown.
According to Coinmarketcap, the X2Y2 token dropped by 21,.97% following the announcement, falling to $0.001273. Over the past year, the token has declined 90,15%, and the project’s market cap now stands at just $226,000.
What’s Next for the Team
Despite the marketplace closure, TP emphasized that the team is not leaving the crypto space. Instead, they are shifting focus to the intersection of AI and blockchain.
The new direction involves exploring how artificial intelligence can drive decentralized income systems. TP stated that the team has been researching this potential for over a year, and the upcoming initiative aims to create sustainable long-term value regardless of market cycles.
Though specific details are scarce, TP described the new idea as “AI-powered decentralized yield,” signaling a pivot toward utility-driven innovation.
NFT Market Has Collapsed Nearly 95%
X2Y2’s closure is part of a broader trend. The NFT market has continued to contract, with trading activity plunging across most major platforms.
Data from DappRadar and other analytics providers shows:
- Art Blocks, once a leader in generative art NFTs, has lost 95% of its trading volume and 88% of its sales.
- SuperRare is down 94% in volume and 98% in the number of transactions.
- Foundation, one of the most popular platforms in 2021, has seen its volume drop 99.8%, leaving it almost inactive.
X2Y2 is not the only platform to exit the space in recent months. In fact, several high-profile NFT ventures have shut down, including:
- November 2024: Kraken shut down its NFT marketplace, citing the need to redirect resources to other business areas.
- December 2024: RTFKT, a Nike-owned digital fashion brand, ceased operations amid a steep decline in NFT collection prices.
- Late March 2025: LG announced the closure of its digital art platform LG Art Lab, officially exiting the NFT space.
This post is for informational purposes only and is not an ad or investment advice. Please do your own research making any decisions.
