NFT Market Shifts: Bybit Joins the Exodus
NFT marketplace operated by Bybit to shut down due to a staggering 95% drop in industry-wide trading volume.
Get the lowdown on the latest buzz in the digital collectibles world, as major players like Bybit bid adieu to their NFT marketplaces. Read on to find out why the NFT market is undergoing a massive transformation.
Bye Bye Bybit, Hellooo Simplification
The crypto exchange Bybit has made headlines by announcing the shutdown of its NFT marketplace on April 8, 2025. This decision comes as part of a larger industry trend, with NFT trading volumes down more than 95% from their peak levels.
Joining Bybit in departure are other platforms like X2Y2, Kraken, RTFKT, and LG. After suffering a devastating $1.4 billion hack in February, attributed to North Korea, Bybit's decision to streamline offerings and enhance user experience seems justified.
When the Going Gets Tough...
As the market struggles, several prominent platforms have chosen to exit the NFT space. In late April, Ethereum NFT marketplace X2Y2 decided to shut down its trading platform, citing the drastic 90% decline in NFT trading volume from its peak as a primary reason.
Kraken, Nike-owned RTFKT, and television manufacturer LG have also abandoned the NFT world, with LG planning to close its NFT platform, LG Art Lab, on June 17.
A Market on the Brink?
Data shows the NFT market is in a grim state. Daily trading volume has plummeted from over $18 million a year ago to just $5.34 million today, marking a 70% drop. Total NFT sales in the first quarter of 2025 were a disappointing $1.5 billion, down 63% year-over-year.
The number of active wallets participating in NFT trades has steadily declined, with less than 20,000 wallets in action today compared to half a million at the market's peak.
Value Plunge
Once highly sought-after collections have seen their value dwindle significantly. The floor price for CryptoPunks has plummeted nearly 66% from its August 2021 high, while Bored Ape Yacht Club NFTs have crashed an astounding 90% from their May 2022 high.
A silver lining in the storm
Despite the downturn, some collections have bucked the trend, with Pudgy Penguins, Doodles, and Milady Maker showing growth. Analysts believe this surge in sales could signal the NFT market evolving beyond its speculative origins into a new era focusing on practical applications, such as gaming, AI, fan engagement, and content authentication.
In an increasingly competitive landscape, challenges remain for new projects. For instance, NFT project Gutter Cat Gang struggled during its token launch, attracting only 3.66 Ether in its token sale, far short of its $1 million target.
While the future remains uncertain, industry experts remain optimistic. The NFT Paris conference in February 2025 drew an estimated 20,000 attendees, suggesting continued interest from creators and collectors even as investor enthusiasm wanes.
As Bybit's NFT marketplace and others close shop, the NFT market is entering a period of restructuring and refocusing. With a potential recovery on the horizon, the digital collectibles world is one to watch in 2025 and beyond.
Cryptocurrency exchanges, such as Bybit, are taking a step back from the NFT market, closing their marketplaces due to the 95% drop in trading volumes. Ethereum, a prominent blockchain in the NFT sphere, has also seen an NFT marketplace, X2Y2, close its trading platform, citing the 90% decline in NFT trading volume as a primary reason.
