Cryptocurrency exchange Bybit announced on Tuesday that it will close its NFT marketplace as part of efforts to streamline its offerings.
The company confirmed that operations for its NFT Marketplace, Inscription Marketplace, and IDO product pages will be discontinued.
Market Weakness Drives Closure
Bybit’s decision follows similar moves from other crypto exchanges, such as Kraken’s closure of its NFT marketplace and X2Y2’s plans to shut down its operations at the end of this month. These closures reflect the ongoing decline in the NFT market, which, despite occasional signs of activity, has been in a steady downturn since late 2022.
Declining Interest in NFTs
The demand for pricey profile picture (PFP) NFTs and digital art has significantly decreased in recent years. Popular collections like Bored Ape Yacht Club no longer generate the high trading volumes they once did, signaling a shift in market interest.
NFT Market Trading Volumes Plunge
Blockchain analytics firm DappRadar recently highlighted the severe drop in the NFT market, reporting a 95% decline in trading volumes for the most popular NFT collections since the peak in 2021. Furthermore, the number of active traders has fallen dramatically, with the number of active wallets dropping from over 500,000 to less than 20,000.
Bybit’s move is a reflection of broader trends in the NFT space, where trading activity has slowed considerably, and investor interest has waned.
Kosta Gushterov
Reporter at Coindoo
Kosta has been a part of the team since 2021 and has solidified his position with a thirst for knowledge, incredible dedication to his work and a “detective-like” mindset. He not only covers a wide range of trending topics, he also creates reviews, PR articles and educational content. His work has also been referenced by other news outlets.
Source: https://coindoo.com/bybit-to-close-nft-marketplace-amid-weakening-market-conditions/