X2Y2 will be shutting down its marketplace after three years, recognizing the downturn in NFT trading and shifting its focus toward AI.
The NFT marketplace X2Y2, created as an alternative to OpenSea and LooksRare, is scheduled to close on April 30. The decision comes in light of a significant drop in trading activity and the difficulties of remaining competitive.
In a statement released on March 31, the project’s enigmatic founder known as TP remarked that the X2Y2 team is “sunsetting X2Y2 as an NFT marketplace” after three years in the field. He pointed out that the “90% decrease in NFT trading volume from its 2021 peak is undoubtedly one of the many factors behind this decision.”
“The NFT experience has taught us valuable lessons — especially that enduring value surpasses merely chasing trends. This understanding is what makes us draw a definitive line here; not a pause or a maybe, but a complete end to X2Y2 as we once understood it.”
TP, founder of X2Y2
X2Y2 was once recognized as a prominent player in the NFT arena, achieving $5.6 billion in all-time trading volume and briefly operating as the second-largest NFT marketplace after OpenSea. However, it has now seen its trading volume dwindle to $53.6 million, according to data from Token Terminal.
The platform’s smart contracts will continue to operate, allowing user interactions. Nonetheless, the team has cautioned that the marketplace’s closure may adversely affect its token.
“I understand this may be difficult, especially regarding token value. X2Y2 tokens were closely linked to this NFT vision, and as we move past this phase, that’s likely to have a significant impact. I empathize with you, and I’m not here to sugarcoat the situation.”
TP, founder of X2Y2
While the marketplace is closing, X2Y2 is not entirely stepping away from the crypto world. The team has indicated a shift toward AI, labeling it as “the most profound paradigm shift we will witness in our lifetime.” Although specifics were not disclosed, the team described their upcoming project as one that “leverages everything we’ve learned and strives for greater heights,” focusing on “yields in a permissionless manner, driven by AI.”