X2Y2, a former frontrunner in the non-fungible token (NFT) marketplace arena, is set to cease operations on April 30, concluding a three-year journey that briefly positioned it just behind OpenSea in trading volume during the NFT surge of 2021.
This choice comes amidst a significant downturn in the overall NFT market, with trading volumes plummeting nearly 90% from their peak, as noted by the team in an announcement. X2Y2 had difficulty sustaining the network effects essential for marketplace viability.
“Marketplaces thrive or fail based on network effects,” stated founder TP in the announcement. “After three years, it’s evident that it’s time to let go.”
Launched in early 2022, X2Y2 achieved an impressive all-time trading volume of $5.6 billion, as per available data.
While the smart contracts associated with the platform will remain functional, users are advised to withdraw their assets or transition their activities before the shutdown deadline. Following the announcement, the price of X2Y2’s native token has dipped by 10.7%, now trading slightly above $0.001. Over the past two years, the token has lost approximately 97.7% of its value.
The team announced their shift towards a new initiative focused on AI-driven, decentralized financial tools.