Bybit Shuts Down NFT Marketplace Amidst Market Slowdown

In a strategic move reflecting the current state of the NFT market, cryptocurrency exchange Bybit has announced the closure of its NFT marketplace. Effective April 8, 2025, at 4:00 pm (UTC), the platform will cease operations, simultaneously shutting down its Inscription Marketplace and initial decentralized exchange offering (IDO) initiative.

Bybit cited efforts to \”streamline offerings\” as the reason behind this decision, a trend mirroring recent actions by other major players in the NFT space, such as X2Y2’s recent announcement of their own marketplace closure. This development underscores the broader challenges facing the NFT sector, characterized by a significant decline in trading volume.

A Declining NFT Market

The overall NFT market has experienced a considerable downturn. Daily trading volume has plummeted from over $18 million a year ago to approximately $5.34 million at the time of writing – a staggering 70% decrease. This decline is even more pronounced when compared to the peak of over $113.6 million on December 17, 2024, representing a more than 95% drop since then. This significant reduction in activity highlights the weakening investor interest in speculative NFT projects.

The impact of this downturn is evident in recent events, including the less-than-stellar token launch of Gutter Cat Gang (GCG)’s GANG token on Apechain. While initially attributed to technical issues, many observers point to a lack of market interest as a contributing factor. The sale reportedly attracted only 3.66 ETH ($6,800), a far cry from the targeted $1 million.

Further emphasizing the market contraction, a recent report indicated a 63% year-over-year drop in NFT sales during the first quarter of 2025. While some projects, like Doodles, Milady Maker, and Pudgy Penguins, bucked the trend, the overall picture remains one of significant decline.

Bybit’s decision serves as a stark reminder of the evolving landscape of the NFT market and the need for platforms to adapt to shifting investor sentiment and trading activity.