Bybit has revealed its intention to close its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages to “simplify offerings and improve user experience.”
This exchange is the latest to withdraw from a digital collectibles sector that has experienced a sharp decline in demand, trading volumes, and user engagement over the past two years.
Effective April 8 at 16:00 UTC, users are urged to transfer their assets from their Bybit web3 wallets before the cutoff.
### NFT Trading Volume Declines
This decision aligns with a larger trend of diminishing institutional interest in NFTs. Notably, Kraken recently discontinued its own NFT marketplace, and LG Electronics has shut down its NFT platform, LG Art Lab, after three years of operation.
Statistics from a blockchain analytics company indicate that trading volumes for leading NFT collections have dropped over 95% since the market’s peak in 2021. The number of active wallets participating in NFT transactions has fallen from more than half a million to under 20,000 as of 2025.
Total NFT sales plunged to $1.5 billion in the first quarter, a significant drop from $4.1 billion in the equivalent period last year, marking a 63% decrease year-over-year. Sales in March alone were down 76% compared to the same month last year.
Collections that were once associated with NFT hype, such as Bored Ape Yacht Club, now see minimal trading volumes, although a few projects have managed to stand out.
Pudgy Penguins experienced a 13% increase in sales during the first quarter, totaling $72 million, while Doodles benefited from a recent collaboration with McDonald’s, achieving $32 million in quarterly sales.
### Security Concerns
Bybit’s decision also comes in light of ongoing worries following a significant security breach that occurred in late February.
The exchange was hit by hackers linked to North Korea, resulting in the theft of approximately $1.4 billion in digital assets. Much of this stolen cryptocurrency has yet to be reclaimed, increasing pressure on the exchange to reassess its risk exposure and operational strategy.
Bybit’s shift highlights the difficulties faced by NFT marketplaces, from declining demand and dropping volumes to rising security concerns. While some niche collections remain vibrant, the overall landscape offers a stark outlook for a sector that was once viewed as the future of digital ownership.