After 3 years, NFT marketplace X2Y2 shuts down and transitions to AI technology.

X2Y2, a non-fungible token (NFT) marketplace, has announced that it is shutting down after three years of operation.

As per a March 31 announcement, X2Y2 will cease its operations on April 30 to focus on an artificial intelligence project. The team expressed excitement for the potential in this rapidly growing sector:

“It’s a pivot. Over the last 12 months, we’ve been deep into AI—undoubtedly the most significant paradigm shift we’ll see in our lifetimes—and how it can revolutionize crypto. We are working on something new.”

Data from Token Terminal reveals that X2Y2 had a trading volume of $53.6 million in the last year. While this is significantly less than the market leader Blur with $3 billion in trading volume, X2Y2 holds the fourth position after Blur, OpenSea, and Immutable.

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X2Y2 365-day trading volume chart. Source: Token Terminal

Charu Sethi, president at NFT-focused Polkadot and Kusama chain Unique Network, emphasized that this decision does not indicate a downturn in the NFT market. She stated to Cointelegraph:

“The speculative phase centered on collectibles and trading is over, but NFTs are now entering their next growth phase as core infrastructure that enables vast opportunities in gaming, AI, fan engagement, and content authentication.”

Real-world implementation is crucial

Sethi pointed out initiatives such as Mythical Games issuing a large number of NFTs on Polkadot for in-game integration after a $75 million fundraise in 2021. She also highlighted a DappRadar report indicating that the blockchain gaming sector reached 7.4 million daily unique active wallets in 2024.

Sethi emphasized, “X2Y2’s experience underscores that NFT platforms should not rely solely on marketplace network effects.” Instead, companies should concentrate on building communities and market resilience by integrating NFTs into real-world applications. She stressed that prioritizing utility over speculation is key.

“Platforms should transition to utility-driven models that incentivize consistent user engagement, whether through gaming, sports fandom, or AI-backed applications,” Sethi added. “Successful platforms will establish ecosystems where NFTs are part of an ongoing value cycle, not just speculative trading assets.”

Alexander Salnikov, co-founder of the Rarible NFT marketplace, shared with Cointelegraph that the apparent downturn is part of a broader cycle in the NFT market. His remarks echoed Sethi’s sentiment that utility is crucial:

“NFTs remain one of the most influential primitives in crypto, and the next wave will be driven by projects that focus on strong use cases, whether in gaming, digital identity, or brand engagement.”

A new focus

The announcement did not provide many details about the project that the X2Y2 team is now focusing on. However, the company hinted that users should envision “yields in a permissionless way, powered by AI.”

The new platform is expected to enable users to generate profits across bear and bull markets, as well as entire market cycles, likely in a somewhat decentralized version of AI-driven trading:

“This is not just another project; it’s our attempt at creating genuine, long-term value in crypto for the broader community we are proud to serve.”

The announcement comes after reports in early February that tokens linked to artificial intelligence agents had plunged by up to 90% from 2024 highs. Nonetheless, recent reports suggest that the emergence of AI-driven crypto agents may be following a familiar pattern that mirrors the initial boom, bust, and resurgence of projects from the ICO era.

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