- NFT marketplace X2Y2 has announced it’s shutting down to pivot to AI
- X2Y2 is shifting its focus to an AI-powered crypto project that provides sustainable value generation
- X2Y2 was once the second-leading NFT marketplace
The bearish momentum has overpowered NFT exchange X2Y2, which has announced it’s shutting down and pivoting to AI. The marketplace disclosed that its next venture is an AI-powered crypto project that provides sustainable value generation, adding that it has been “diving deeper into AI […] over the last 12 months.” X2Y2 has been in operation for three years and was once the second-leading global NFT marketplace with an all-time trading volume of over $5.5 billion, indicating that the NFT market may never return to its 2021-2022 highs.
Smart Contracts Not Shutting Down
X2Y2 disclosed that it will completely shut down by the end of next month, but “the smart contracts will keep running.” The marketplace admitted that the shrinkage of NFT trading volume from the 2021-2022 hype is among “the many reasons” it’s winding down.
1/ After an incredible 3-year journey, I have some important news to share: X2Y2 will be sunsetting as an NFT marketplace on April 30, 2025. The contracts will remain live, but the platform itself will shut down.
— TP | X2Y2 (@tp_x2y2) March 31, 2025
It added that its predicament is a common occurrence in the web3 space. X2Y2 noted that its time in the NFT market has taught it that “lasting value beats chasing trends.” The marketplace, however, said that the move isn’t a goodbye but a pivot to AI.
“The Biggest Paradigm Shift”
It described AI as “the biggest paradigm shift we’ll see in our lifetimes,” noting that its next project uses AI to enable users to earn yields in a decentralized way and is effective in both bull and bear cycles.
The marketplace’s announcement comes a few days after a DappRadar report revealed that the dip in the NFT market within the last four years has affected both NFT collections and marketplaces. The report disclosed that art NFT trading volume, for example, declined by over 90% within this period. It also noted that the dip has forced most marketplaces out of business.
With X2Y2 shifting from NFTs to AI, it will be interesting to see whether this will be a trend among other NFT projects that are overwhelmed by the bearish momentum.
