Bybit has declared the termination of its NFT marketplace operations because of dipping trading volumes. The Singapore-based crypto exchange set April 8, 2025 as the starting date for the market shutdown. This exchange picks up this move as a part of its company-wide initiative to maximize operational efficiency and simplify business operations.
Bybit to Discontinue NFT and Inscription Marketplace
An official statement by ByBit on April 1, announced plan closures for both the Inscription Marketplace together with the initial decentralized exchange offering (IDO) platform. Product optimization processes served as Bybit’s reason for terminating these operations.
Bybit joined a growing trend in the industry alongside NFT marketplace X2Y2, which made comparable changes. Trading activity has pushed various platforms to review their NFT initiatives and operations.
NFT Trading Volumes Experience Sharp Decline
The NFT marketplace has experienced a dramatic decline since last year because trading volumes have decreased substantially each day. NFT trading volume data reveals that the market experienced an 18 million dollar peak in 2021, which has decreased to only 5.34 million dollars in the present day, representing a 70 percent reduction.
The NFT trading volumes reached their peak on December 17, 2024, at $113.6 million, while the current volume stands at just $5.34 million. The market has experienced a drop exceeding 95%. Since that particular day, it indicates that investors have lost interest in speculative NFT assets.
Market Shift Towards Utility-Based NFTs
Professional observers believe the reduction in unpredictable NFT market transactions points to the growing importance of functional NFT products. NFTs have progressed from mere collectibles and trading to new utility-based applications according to Charu Sethi who leads Unique Network as president.
“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 said.
Broader Implications for the NFT Industry
The NFT sector shows decreasing sales numbers based on Bybit’s decision to leave the market. First-quarter NFT sales plummeted by 63% compared to last year, according to market reports in 2025. The Gutter Cat Gang faced obstacles when it launched its GANG token on March 31 because of the market downturn.
The overall NFT market has exhibited negative trends yet three projects consisting of Doodles, Milady Maker and Pudgy Penguins have maintained steady performance. Despite market fluctuations these projects maintained their ability to keep users active with active trading affairs.
The changing market recognition for digital assets has led Bybit to shut down its NFT marketplace operations. The dropping cryptocurrency trading activity has led exchanges to redirect their efforts toward strengthening different areas in the crypto market. Users need to withdraw their assets before the closure day to prevent service interruptions.
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