- Bybit has announced imminent the closure of its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering product pages
- The NFT market has experienced a sharp decline, with trading volumes dropping over 95% since their peak in 2021
- This decision follows a significant security breach in February 2025, where approximately $1.4 billion was stolen
Crypto exchange Bybit has decided to discontinue its NFT-related services, including the NFT Marketplace, Inscription Marketplace, and IDO product pages. This move, which will take place on April 8, comes amid a continued downturn in the NFT market, which has seen trading volumes plummet by over 95% since 2021. The decision may also have something to do with the record-breaking $1.4 billion that took place in February as the company looks to try and limit outgoings.
Bybit’s Decision to Close NFT Services
Bybit’s NFT Marketplace launched in 2022 as part of its push into Web3, offering users a simple way to buy, sell, and trade NFTs without needing external wallets. It later added support for inscriptions, a newer form of on-chain digital collectibles. However, as NFT interest declined sharply, activity on the platform dropped off, making it unsustainable.
The IDO (Initial DEX Offering) platform was created to give users early access to new crypto projects, often offering discounted tokens before public release. Despite initial interest, falling retail participation and concerns after the February 2025 hack also made it hard to justify.
In a terse statement issued yesterday, ByBit announced its decision to shutter the two services:
As part of our efforts to streamline our offerings, Bybit Web3 will discontinue operations for its NFT Marketplace, Inscription Marketplace, and IDO product pages.
This change will take effect on April 8, 2025, at 16:00 (UTC), after which these product pages will no longer be accessible. Users are advised to take the necessary steps to manage their assets before the discontinuation date.
Industry-Wide Challenges
Bybit is not alone in killing off its NFT offerings. Earlier this week, marketplace X2Y2 announced it would wind down operations, having processed $5.6 billion in trading volume over its lifetime, and focus instead on artificial intelligence. X2Y2 cited the 90% shrinkage of NFT trading volume from its peak in 2021 as a significant reason for its closure; LG gave a similar reason for ditching its TV-based NFT exchange.
In November 2024, Kraken decided to shutter its NFT offering “so we can shift more resources into new products and services,” highlighting the difficulties in operating in the NFT world right now.
