A big shift has happened in the NFT marketplace. X2Y2, once a big competitor to OpenSea, is shutting down. X2Y2 could not stop the bleeding after its trading volume fell a staggering 90 percent from its peak.
Despite having done $5.6 billion in business during its three years of living, it will close the doors on April 30, 2025. Its smart contracts remain in existence, so users can still access and trade X2Y2 NFTs.
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The Rise and Fall of X2Y2
Started only three years ago, X2Y2 swiftly became one of the top NFT platforms on the market. Its singular way of doing business and the introduction of cool new tools caused the marketplace to snag a hefty 15% of the fast-growing NFT sector. In October of last year, we had a peak month with X2Y2 ranking as the second-largest NFT marketplace by trading volume with $5.6 billion processed across its platform.
The swift expansion of the NFT space came to an unexpected stop in 2022. In common with many other platforms, X2Y2 struggled to keep its head above water as the tide of market enthusiasm receded and the NFT sector in general showed clear signs of slowing down.
The platform started strong and looked like a contender, managing to pull in a nice amount of trading activity. But as the market headed in a different direction, it pretty much just floundered, unable to keep pace with larger competitors like OpenSea. Broader market trends impacted trading volume and competition.
❌ NFT marketplace @the_x2y2 is shutting down following a 90% decline in #NFT trading volume. Since launching three years ago, it has processed $5.6B in transactions, according to TokenTerminal.
Operations will end on April 30, but smart contracts will remain active. The team… pic.twitter.com/YaPNUBe3ut
— Mpost Media Group (@mpost_io) March 31, 2025
The 90% drop in trading volume was a direct reflection of these broader market trends. The decline in demand for NFTs, combined with tough competition and the rise of other new NFT marketplaces, led to X2Y2’s user base and trading activity largely evaporating. As the market went through a period of consolidation, smaller platforms like X2Y2 were hit the hardest, unable to generate sufficient user interest to keep from being largely moribund.
X2Y2 has struggled to maintain viability in an increasingly selective NFT sector that is growing fast but also maturing. With trading activity down and user growth stagnant, X2Y2 undertook an exercise in completely reevaluating its revenue model. The main problem? The company’s cash register was largely silent.
A Shift Toward the Future: X2Y2’s Pivot to AI and Crypto
The X2Y2 team is positive about what lies ahead, even though they have shut down their marketplace. They say they are now heavily invested in the world of artificial intelligence (AI) and its exciting intersection with cryptocurrency. “We are deep in the AI space, exploring how it intersects with crypto in powerful new ways,” they said. And this is not just idle conversation; it represents a serious pivot away from the declining NFT sector toward artificial intelligence and its potentially broad disruptions of the cryptocurrency and blockchain ecosystems.
The area where AI and crypto meet is gaining a lot of attention in the tech world. The team at X2Y2, a crypto startup that focuses on NFTs, is using its blockchain knowledge to investigate the rapidly expanding world of AI for potential synergies that could lead to something big. X2Y2’s new AI-play is a bit of a mystery; they haven’t said much about it. But with two of the hottest tech domains right now converging, it’s worth catching up.
Even though X2Y2’s closure puts an end to the era for the platform, the team’s pivot to AI is thinking ahead as they try to explore new paths in the changing marketplace. The shift from NFTs to AI could, in my opinion, give them the flexibility they need to stay relevant as the crypto world continues to grow up.
The State of the NFT Market and What Lies Ahead
Closing down is a trend that is affecting several NFT platforms. The infatuation with NFTs in 2021 and 2022 spun off a number of new projects and platforms. Since then, we have seen a downturn in the market, with trading volumes dropping and overall interest waning. Meanwhile, several platforms have found it impossible to keep their user numbers growing and their virtual coffers filling.
The NFT market has become more competitive. Larger platforms like OpenSea, along with newer entrants, continue to dominate the space. The market is far from dead. But the slowdown has forced many smaller projects and platforms to reevaluate their positions. For some, like X2Y2, the decision to shut down was probably inevitable. But NFTs remain an integral part of the crypto ecosystem. And despite the challenges faced by marketplace platforms like X2Y2, many observers think the sector will eventually find new growth and opportunities.
In the future, perhaps the focus will turn to NFT projects with much more sustainable models, projects with plenty of real-world utility, and innovation in sectors like gaming, art, and our ever-expanding virtual worlds. NFTs that deliver real, tangible value and solve real, concrete problems may just be the market-revitalization elixir we need to see in the next couple of years. Lurking toward AI and crypto innovation, X2Y2 looks to be adapting its quite-visible company model toward something much more aligned with the whole crypto world evolving these days.
Conclusion: A Market in Flux
X2Y2’s closure serves as a poignant reminder of the volatility and uncertainty that exists within the NFT space. The once-robust marketplace—acting as a secondary marketplace for NFTs—has seen a rapid decrease in trading volume lately. X2Y2’s parent company, and the team behind the marketplace, are exploring AI and crypto.
The NFT market is still nascent but quite fluid. The latest shift concerns projects with “real-world utility” next to their supposed “revolutionary nature” and, as such, X2Y2’s exit seems to reflect a broader trend away from serviceable NFT exchanges. The good news, however, is that the people involved in X2Y2 don’t operate in a vacuum. They can take what they learned from building an NFT exchange and apply it to whatever they choose next. And the next chapter in the NFT story will probably be one of those “real-world projects” that critics keep asking for.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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