Bybit has announced it will permanently close its NFT Marketplace and related services, joining a growing number of crypto platforms scaling back their involvement in the NFT sector.
The move comes amid continued declines in NFT market activity, with trading volumes and floor prices of major collections falling sharply over the past two years.
Users have been instructed to manage and withdraw their assets before the shutdown.
Why is Bybit shutting down its NFT marketplace?
Bybit announced the closure of its NFT-related services in a statement released on April 1. The company said the decision was part of an effort to “streamline offerings.”
The NFT Marketplace, Inscription Marketplace, and IDO product pages will become inaccessible starting April 8 and has not said whether these services may return in the future.
The exchange was the target of a cyberattack in February, resulting in losses of approximately $1.4 billion—reported to be the largest single crypto theft to date. The FBI later attributed the hack to a group linked to the North Korean cybercriminal organization—the Lazarus Group.
Other Platforms Exiting the NFT Space
Bybit is not the only firm to move away from NFTs in recent months. Several other companies have announced similar decisions as interest and trading activity in the sector continue to decline.
NFT platform X2Y2 said earlier this week that it would wind down operations after processing more than $5.6 billion in trading volume since launching in 2021. The team cited the 90% drop in overall NFT trading volume as a key reason for the closure and said it would shift focus to AI-related projects.
US-based crypto-exchange Kraken shut its NFT platform on February 27, stating that resources would be redirected to other products and services, without elaborating on future plans for NFT support.
Electronics company LG also recently announced it will discontinue LG Art Lab, its NFT marketplace built into smart TVs, on June 17. The firm said it was “the right time to shift our focus and explore new opportunities.”
Digital art platform MakersPlace, once known for high-profile NFT sales, has also confirmed it is winding down operations, citing difficult market conditions and a strategic pivot away from NFTs.
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