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- X2Y2 will shut down by April 30, 2025, after trading over $5.6B in NFTs since its 2022 launch.
- A 90% drop in NFT volume and fading network effects led to the platform’s unsustainable model.
- X2Y2 is pivoting to AI, building a permissionless yield platform for long-term crypto solutions.
Veteran NFT trading marketplace, X2Y2, has declared that it would cease operations and shut down by April 30, 2025. Founded in February 2022, this platform was soon leading the NFT market by trading volume exceeding $5.6 billion. TokenTerminal shows that it still remains the third largest by the volume in this new market condition that has affected the market widely.
Source: TokenTerminal
The decision has been made at a time when the NFT market has been contracting for quite some time now. The global volumes of NFT trading fell by over 90% from record highs and now some of the platforms have unsustainable revenue models. This prompted X2Y2’s team to indicate that a major problem was the decline of network effects due to the difficulty in maintaining marketplace growth.
Smart Contracts Remain Active
However, while the platform does cease to exist, those smart contracts that were created will continue to execute their operations. This will not cause the users to feel the need to interact with them and get to access their respective assets right away. However, due to the platform’s halt, holders of X2Y2 tokens that were initially link to its utility will witness most of their tokens’ value diminish.
This is not the case of shifting gears or even reorganizing for the next picture but exiting the NFT market entirely. During the last year, X2Y2 has been working on the exploration of entering the artificial intelligence market. This shift will go from NFT trading to more focused and sustainable development of crypto technologies.
From NFTs to AI
Their next plan is to establish a permissionless platform for artificial intelligence yield generation. This is quite a radical change of approach—went from catering to the needs of NFT traders to creating products that will be useful in any cycle. It’s new approach is present as a long-term business model based on the role of technology as opposed to a fad.
The team reveals that AI technology is revolutionize the future of crypto. Through integration of AI and DeFi, they seek to develop algorithms that self-run without command or decision from a central authority to generate some return for the decentralized finance processes. This model also provides both, novelty that appreciably solves several of the scaling issues within NFT platforms.
X2Y2’s exit from the NFT market means there is a shift in the Web3 arena. A once followed leading trend, the company now joins others in shifting focus to more grounded, structural applications of the technology. It also underlines a general trend within the crypto sphere from trading-based bubbles to sustainable use cases.
