Bybit, one of the world’s leading cryptocurrency exchanges, has announced that it will close its NFT marketplace effective April 8. The move comes as part of a strategic decision to refocus on the company’s core services, while also addressing growing security challenges and a broader NFT market downturn.
A Sudden Move Reflecting Market Trends and Security Risks
The closure follows a major cybersecurity breach in February, which resulted in the theft of approximately $1.46 billion in digital assets—one of the largest crypto-related hacks in history.
Citing both internal strategy and external threats, Bybit has urged users to transfer their NFT holdings to external wallets before the deadline. The platform emphasized its goal to strengthen user security and streamline operations in its main business areas.
NFT Activity Continues to Decline in 2025
Bybit’s exit reflects the broader decline in NFT trading volume. In Q1 2025, global NFT sales dropped by 63%, falling from $4.1 billion in the same period last year to $1.5 billion. March alone witnessed a 76% drop in sales—from $1.6 billion in 2024 to just $373 million this year.
Despite the downturn, some projects defied the trend. The Pudgy Penguins collection saw a 13% rise in sales, reaching $72 million, while Doodles boosted its visibility with a $32 million McDonald’s partnership. Ethereum-based Milady Maker also gained traction with a 58% surge in investor interest.
NFT Platforms Exit While Others Evolve
Bybit isn’t the only platform stepping away from NFTs. Long-standing NFT marketplace X2Y2, which launched in 2021, recently announced its closure after three years of operation, redirecting focus to a new AI-powered crypto project.
Similarly, tech giant LG revealed plans to shut down its TV-based NFT platform, Art Lab, on June 17, ending an initiative launched during the 2022 NFT boom.
These decisions reflect the evolving landscape of NFTs, where some players are exiting, while others pivot to emerging opportunities.
Hope for NFTs in the Next Chapter
Despite widespread closures, NFTs are not dead. Analysts argue that the sector is undergoing transformation, rather than disappearing. New applications in Web3 gaming, tokenized physical assets, and next-generation digital identity could pave the way for a new era of NFTs.
In March, investment firm Canary Capital filed for an NFT-focused ETF with the U.S. Securities and Exchange Commission (SEC). The proposed ETF would invest in Pudgy Penguins NFTs, their utility token PENGU, and NFT-related cryptocurrencies like Ethereum (ETH) and Solana (SOL).
Bybit Stays Committed to Blockchain Despite Exit
While stepping away from the NFT sector, Bybit remains dedicated to blockchain innovation. In response to February’s security breach, the company pledged to overhaul its security infrastructure, with updated protocols and a renewed focus on user protection.
Final Thoughts: An End or a New Beginning?
Bybit’s NFT market closure is not necessarily a signal of the end—but rather the beginning of a new chapter. As the NFT market contracts, industry players are repositioning, regulations are tightening, and technologies are evolving. The sector may be at a turning point, ready to reinvent itself for the next phase of digital ownership.
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