Bybit, a well-known crypto exchange, has recently decided to close down its Non-Fungible Token (NFT) market as part of a broader effort to streamline its operations. The decision came as the broader NFT market weakened, decreasing interest and trading activity in the sector.
Bybit’s action reflects a trend in other parts of the crypto industry: companies are closing down their NFT services amid a declining market.
Bybit To Adjust Strategize
In a statement, Bybit confirmed that it would discontinue its NFT Marketplace, Inscription Marketplace, and IDO product pages. The company cited the need to focus on its main offerings as the reason behind this decision.
Bybit’s decision to close its NFT marketplace aligns with the growing realization that the NFT boom of 2021 might be over. Since reaching its peak in 2021, the excitement around NFTs has been fading, and the market has been slowly shrinking.
NFTs, particularly digital art and profile pictures (PFPs), were once seen as the future of collectibles and digital ownership. However, interest has significantly dropped over the past couple of years.
The NFT Market Slows Down, Firm Struggles To Keep Up
Bybit’s decision, revealed in a post, reflects a growing challenge in the NFT market. Platforms like Kraken and X2Y2 have followed suit by shutting down their own NFT operations, signaling a shift in how companies approach the NFT space.
Last month, global electronics conglomerate LG also announced its plans to end its NFT platform, LG Art Lab.
High-Profile NFT Collections Lose Value
High-profile collections, such as the Bored Ape Yacht Club, once captured widespread attention and dominated the digital art scene. However, trading volumes for these top collections have dropped significantly.
DappRadar, a blockchain analytics firm, reported that trading volumes for the most popular collections have fallen by 95% since the peak of the NFT market in 2021.
Additionally, the number of people actively trading NFTs has fallen dramatically, from over half a million to under 20,000 active wallets. Even though there is an occasional surge in interest, the overall market demand for NFTs has dropped.
While NFTs still have some value in certain areas, the initial excitement has faded. As the industry continues to grow, businesses will need to adjust, find new ways to interact with digital assets and diversify their portfolios.
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