The NFT trading platform X2Y2 is set to cease operations on April 30, 2025, marking the end of its three-year journey in the non-fungible token arena. Launched in February 2022, X2Y2 emerged as a formidable competitor to OpenSea, hitting a high of $209 million in trading volume in May of that year. However, with the NFT market plummeting 90% from its 2021 peak, the platform struggled to remain viable. In a strategic shift, the X2Y2 team announced plans to refocus on artificial intelligence (AI) and decentralized finance (DeFi), aiming for sustainable growth over chasing fleeting trends.
X2Y2’s Rise and Fall
At its height, X2Y2 capitalized on the NFT frenzy, drawing users with competitive fees and a user-friendly interface. The platform recorded an impressive $5.6 billion in total trading volume, a testament to its initial success. Yet, as the NFT hype faded, its momentum faltered. According to Token Terminal, X2Y2’s trading volume over the past year dwindled to $53.6 million, trailing far behind Blur’s $3 billion, OpenSea, and Immutable. This sharp decline, coupled with a shrinking market and stiff competition, rendered the platform unsustainable.
The broader NFT sector has faced similar challenges, with trading volumes collapsing since their 2021 high. Even leading platforms like Blur have seen significant drops. X2Y2’s closure underscores the weakening “network effect” essential for marketplace longevity. In a blog post, the platform’s elusive founder, TP, reflected, “A marketplace thrives on its network. We aimed high, but after three years, it’s clear we need to pivot. NFTs showed us the importance of enduring value over passing crazes.”
Token Impact and User Next Steps
While the marketplace will shut down, X2Y2’s smart contracts will remain active, allowing users to access or move their assets. The announcement triggered a 20% drop in the X2Y2 token price within 24 hours, compounding an 89% decline over the past year. Per CoinGecko, its market cap sits at $493,000 as of April 7, 2025, signaling fading confidence among investors.
A New Focus on AI and DeFi
X2Y2’s pivot to AI and DeFi aligns with emerging trends in the cryptocurrency space. Described as a “strategic evolution” by the team, this move aims to leverage blockchain for AI advancements and DeFi opportunities—areas seen as more resilient than the volatile NFT market. Though specifics remain vague, TP hinted at innovative applications ahead, following a path similar to Kraken, which shuttered its NFT platform in February 2025 to redirect resources.
Looking Forward
X2Y2’s exit from the NFT scene reflects the harsh aftermath of the market’s boom-and-bust cycle. As it steps into AI and DeFi, its future depends on its ability to adapt, potentially revitalizing the project or serving as another lesson in crypto’s volatile history.