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Bybit to Close NFT Marketplace Amid 95% Industry Volume Decline
- Bybit will close its NFT marketplace on April 8, joining other platforms in leaving the declining sector as NFT trading volumes have dropped over 95% from peak levels.
- The closure follows a $1.4 billion hack suffered by Bybit in February, attributed to North Korea, prompting the exchange to reassess its operational focus.
- Major platforms like X2Y2, Kraken, RTFKT, and LG have also recently exited the NFT marketplace business due to shrinking trading volumes and changing market conditions.
- First quarter of 2025 saw a 63% year-over-year drop in NFT sales, though collections like Pudgy Penguins and Doodles showed growth amidst the overall market decline.
- The NFT market collapse is evident in the significant decrease in daily trading volumes, active wallets, and total sales, signaling a challenging period for the industry.
- Popular NFT collections like CryptoPunks and Bored Ape Yacht Club have experienced steep declines in value, with prices dropping by significant percentages from their peak highs.
- Despite the downturn, industry experts suggest that NFTs are evolving and entering a new growth phase focusing more on utility-based applications rather than speculative trading.
- Some collections like Pudgy Penguins and Doodles have defied the market trend by showing sales increases, hinting at potential growth areas within the shifting NFT landscape.
- While some remain optimistic about the future of NFTs, the exit of platforms like Bybit reflects a broader industry correction that may continue as the market redefines its focus.
- Users of Bybit's NFT and Inscription marketplaces have until April 8 to manage their assets before the platforms are inaccessible, marking the end of an era for Bybit's involvement in the NFT sector.
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