NFT Marketplace X2Y2 to Cease Operations Following Sharp Decline in Trading Volumes

Key Points to Know:

• X2Y2, formerly a leading NFT marketplace, is set to shut down by the end of the month.

• A sharp decline in the NFT market, with trading volumes plummeting nearly 90%, made it difficult for X2Y2 to sustain its network effects.

• The team is shifting its focus to a new project centered on AI-driven decentralized financial tools.

X2Y2, once a prominent platform for non-fungible tokens (NFTs), will officially close on April 30, marking the end of its three-year journey. During the peak of the NFT boom in 2021, the marketplace briefly ranked just behind OpenSea in trading volume.  

The shutdown follows a prolonged downturn in the NFT market. Trading volumes have plummeted nearly 90% from their peak, the team explained in a statement. As a result, X2Y2 faced challenges in sustaining the network effects essential for a marketplace to thrive.

"Success in marketplaces depends on strong network effects," founder TP wrote in a post. "After three years, it’s evident that it's time to move forward."  

X2Y2, which debuted in early 2022, recorded a total trading volume of $5.6 billion throughout its operation, according to TokenTerminal data.

The platform's smart contracts will remain functional, but users are advised to withdraw their assets or shift their activities before the shutdown date. Following the announcement, X2Y2’s native token dropped 10.7%, now trading just above $0.001. Over the past two years, the token has declined by 97.7% in value.  

The team announced plans to transition to a new initiative focused on AI-powered decentralized financial tools.