Bybit, a prominent cryptocurrency exchange, has announced the impending closure of its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages. This decision is set to take effect on April 8, 2025, at 16:00 UTC, as part of the company’s strategic efforts to streamline its services and enhance user experience.
Industry-Wide Decline in NFT Trading Volumes
The non-fungible token (NFT) market has experienced a significant downturn over the past two years. Data from DappRadar indicates that trading volumes for top NFT collections have plummeted by more than 95% since their peak in 2021. The number of active wallets engaging in NFT trades has also declined sharply, dropping from over half a million to fewer than 20,000 as of 2025.
This decline is not unique to Bybit. Other major platforms have also retreated from the NFT space. Kraken, another leading cryptocurrency exchange, recently shut down its own NFT marketplace, and LG Electronics discontinued its NFT platform, LG Art Lab, after three years of operation.
Security Breach Amplifies Challenges
Compounding the challenges posed by the declining market, Bybit faced a significant security breach in late February 2025. The exchange was targeted by hackers linked to North Korea, resulting in the theft of approximately $1.4 billion in digital assets. A substantial portion of the stolen cryptocurrency remains unrecovered, prompting Bybit to reassess its risk exposure and operational focus.
Bybit’s Strategic Shift
In response to these challenges, Bybit has decided to discontinue its NFT and Inscription Marketplaces, as well as its IDO platform. The company has advised users to transfer their assets from Bybit Web3 wallets before the April 8 deadline to avoid potential losses.
Emily Bao, Head of Web3 at Bybit, stated,
“Bybit Web3 is evolving to focus on core innovations that bring the most value to our users. This strategic refinement allows us to enhance the overall user experience while concentrating on the next generation of blockchain-powered solutions.”
Implications for the NFT Market
Bybit’s exit from the NFT sector reflects broader trends within the cryptocurrency industry. The initial surge in NFT popularity has given way to a more cautious and utility-focused approach. Charu Sethi, president at NFT-focused Polkadot and Kusama chain Unique Network, observed,
“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.”
Conclusion
Bybit’s decision to close its NFT Marketplace underscores the evolving dynamics of the NFT industry, marked by declining trading volumes and heightened security concerns. As the market matures, companies increasingly focus on core innovations and utility-driven applications of blockchain technology. Users are advised to manage their assets promptly in light of these developments.
FAQs
1. Why is Bybit closing its NFT Marketplace?
Bybit is closing its NFT Marketplace to streamline its offerings and enhance user experience, responding to declining NFT trading volumes and a recent significant security breach.
2. When will Bybit’s NFT Marketplace close?
The closure is scheduled for April 8, 2025, at 16:00 UTC.
3. What should users do with their assets on Bybit’s NFT Marketplace?
Users are advised to transfer their assets from Bybit Web3 wallets to external wallets before the closure date to avoid potential losses.
4. Is the decline in NFT trading volumes affecting other platforms?
Yes, other platforms like Kraken and LG Electronics have also exited the NFT space due to similar declines in trading volumes and user engagement.
Glossary of Key Terms
NFT (Non-Fungible Token): A digital asset representing ownership of a unique item or piece of content stored on a blockchain.
IDO (Initial DEX Offering): A fundraising method where new cryptocurrency tokens are offered directly to investors via a decentralized exchange.
Inscription Marketplace: A platform for creating and trading digital inscriptions or engravings on a blockchain.
Web3 Wallet: A digital wallet that allows users to interact with decentralized applications (dApps) and manage assets on the blockchain.
Blockchain: A decentralized digital ledger that records transactions across multiple computers securely and transparently.
