The NFT marketplace X2Y2 will terminate its operations on April 30, 2025, concluding its three-year run in the non-fungible token sector. Debuting in February 2022, X2Y2 quickly rose as a strong rival to OpenSea, achieving a peak trading volume of $209 million in May of that year. However, with NFT market activity dropping 90% from its 2021 zenith, the platform could no longer sustain itself. In response, X2Y2’s team revealed plans to pivot toward artificial intelligence (AI) and decentralized finance (DeFi), prioritizing long-term value over short-lived trends.
X2Y2’s Journey: From Boom to Bust
X2Y2 thrived during the NFT craze, captivating users with low fees and an intuitive design. It amassed $5.6 billion in total trading volume, showcasing its early promise. But as the NFT bubble burst, its fortunes reversed. Token Terminal data indicates that X2Y2’s trading volume over the past year was just $53.6 million—placing it fourth behind Blur ($3 billion), OpenSea, and Immutable—too low to keep the platform afloat amid fierce competition and a contracting market.
The NFT industry as a whole has hit rough waters. Trading volumes have crashed since their 2021 peak, with even top platforms like Blur seeing sharp declines. X2Y2’s shutdown highlights the fading “network effect” critical to marketplace survival. Founder TP, whose identity remains undisclosed, wrote in a blog, “A marketplace depends on its network effect. We aimed for the top, but after three years, it’s time to move on. NFTs taught us to chase lasting value, not fleeting fads.”
Token Fallout and User Options
Though the marketplace is closing, X2Y2’s smart contracts will stay operational, enabling users to retrieve or transfer their assets. The news sparked a 20% plunge in the X2Y2 token price within a day, adding to an 89% loss over the past year. CoinGecko reports its market cap at $493,000 as of April 7, 2025, reflecting waning investor trust.
AI and DeFi: The Next Chapter
X2Y2’s shift to AI and DeFi mirrors growing trends in the crypto world. The team calls it a “strategic evolution,” not a defeat. While details are limited, TP suggested using blockchain to pioneer AI solutions and DeFi innovations—sectors deemed more stable than the erratic NFT space. This echoes Kraken’s recent closure of its NFT platform in February 2025 to redirect efforts.
The Road Ahead
X2Y2’s departure signals the tough realities of the post-NFT boom. As it ventures into AI and DeFi, its success hinges on adaptability, potentially reviving the project or adding it to crypto’s list of cautionary tales.
