Bybit Shuts Down NFT Marketplace as Crypto Collectibles Market Crashes

BYBIT

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Cryptocurrency exchange Bybit has announced the closure of its non-fungible token (NFT) marketplace, marking another blow to the struggling NFT sector. The platform will officially cease operations on April 8, 2025, at 4:00 PM (UTC). In addition to the NFT marketplace, Bybit is also shutting down its Inscription Marketplace and its initial decentralized exchange offering (IDO) initiative.

Bybit cited the decision as part of its broader strategy to “streamline our offerings.” The move follows a similar announcement from major NFT marketplace X2Y2 earlier this week, further signaling a shifting landscape for digital collectibles.

The NFT Market Faces Continued Decline

The NFT sector has witnessed a significant downturn, with daily trading volume plummeting from over $18 million a year ago to just $5.34 million today—a staggering 70% decline. The situation appears even more dire when compared to the market’s peak on December 17, 2024, when trading volumes exceeded $113.6 million. Since then, the NFT market has lost more than 95% of its trading activity, highlighting waning investor interest in speculative digital assets.

Bybit
NFT marketplace daily trading volume. Source: Token Terminal

Charu Sethi, president at Unique Network—a Polkadot and Kusama-based NFT platform—believes that while the speculative phase of NFTs is ending, the technology is evolving into more practical use cases. “The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era as core infrastructure enabling massive opportunities in gaming, AI, fan engagement, and content authentication,” Sethi told Cointelegraph.

Weak Investor Sentiment Hits NFT Projects

The overall decline in NFT interest is reflected in individual projects as well. Gutter Cat Gang (GCG), a once-prominent NFT collection, faced a lackluster launch of its GANG token on Apechain on March 31. The project raised only 3.66 ETH (approximately $6,800), falling drastically short of its $1 million target.

Also Read: VeChain News: B3TR Token Goes Live on Bybit—A Major Milestone for VeBetterDAO

Despite the grim outlook, some collections like Doodles, Milady Maker, and Pudgy Penguins have managed to outperform expectations. However, with NFT sales dropping 63% year-over-year in Q1 2025, the industry faces an uphill battle in regaining investor confidence.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.