The non-fungible token (NFT) marketplace X2Y2 has announced it will cease operations after three years in business.
In a statement released on March 31, the platform revealed that it will shut down on April 30, as the team pivots towards a new project focused on artificial intelligence. They expressed their excitement about the fast-evolving AI sector:
“This represents a shift for us. Over the past year, we’ve immersed ourselves in AI—undoubtedly the most significant paradigm shift of our time—and are exploring its potential to revolutionize the crypto space. We’re developing something innovative.”
Data reveals that over the past year, X2Y2 recorded a trading volume of $53.6 million. While this figure pales in comparison to market leader Blur’s $3 billion in volume, it still positions X2Y2 in fourth place, trailing Blur, OpenSea, and Immutable.
365-day trading volume chart for X2Y2. Source: Token Terminal
Charu Sethi, president of Unique Network on the Polkadot and Kusama chains, commented that X2Y2’s decision does not indicate a downturn in the NFT market. She stated:
“The era of speculation centered around collectibles and trading has concluded, but NFTs are now entering a new growth phase, serving as fundamental infrastructure that opens up vast opportunities in gaming, AI, fan engagement, and content verification.”
Related: The ABCD of AI: Automation, big data, computer vision, and deep learning
The Importance of Real-World Applications
Sethi noted projects such as Mythical Games, which raised $75 million in 2021 to issue a significant number of NFTs on Polkadot for in-game use. She also referenced a DappRadar report highlighting that the blockchain gaming sector achieved 7.4 million unique active wallets daily in 2024.
As Sethi remarked, “The experience of X2Y2 demonstrates that NFT platforms cannot depend solely on the network effects of their marketplaces.” She emphasized that businesses need to foster communities and build market resilience by integrating NFTs into tangible uses. Placing greater value on utility over speculation is crucial:
“Platforms should shift to utility-oriented models that encourage sustained user interaction, whether through gaming, sports enthusiasm, or AI-enhanced applications. Successful platforms will cultivate ecosystems where NFTs offer ongoing value rather than serving merely as speculative trading instruments.”
Related: Will AI crypto tokens follow Nvidia’s stock price trends?.
A New Direction
While details about X2Y2’s new venture remain sparse, the company hinted that the focus will be on “yield generation in a permissionless manner, driven by AI.”
The anticipated platform aims to allow users to earn profits throughout both bearish and bullish market conditions, likely representing a decentralized approach to AI-driven trading:
“This isn’t just another project; it’s our opportunity to deliver genuine, lasting value in the crypto sphere for the wider community we are committed to serving.”
The announcement comes on the heels of early February reports indicating that tokens linked to artificial intelligence agents had declined by up to 90% from their 2024 peak. However, recent trends suggest that the rise of AI-driven crypto agents may follow a path similar to the initial excitement, decline, and eventual revival seen during the ICO era.
Magazine: ‘Chernobyl’ needed to awaken awareness of AI risks, Studio Ghibli memes: AI Eye