tl;dr
Bybit plans to shut down its NFT Marketplace, Inscription Marketplace, and IDO product pages to streamline offerings and enhance user experience. The move reflects waning institutional interest in NFTs, with trading volumes for top NFT collections plummeting by over 95% since the market's peak in 20...
Bybit has announced plans to shut down its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages to streamline offerings and enhance user experience. The closure will take effect on April 8, and users are advised to transfer assets from their Bybit web3 wallets before the deadline. This decision reflects waning institutional interest in NFTs, as trading volumes for top NFT collections have plummeted by over 95% since the market's peak in 2021. The move follows a broader trend of declining demand and trading volume for NFTs, with platforms like Kraken and LG Electronics also shutting down their NFT marketplaces.
According to data from blockchain analytics firm DappRadar, total NFT sales fell to $1.5 billion during the first quarter of this year, marking a 63% year-over-year drop from $4.1 billion in the same period last year. The number of active wallets engaging in NFT trades has declined drastically, from over half a million to less than 20,000 as of 2025. Furthermore, collections once synonymous with NFT hype, such as Bored Ape Yacht Club, no longer command significant trading volumes. However, a few projects like Pudgy Penguins and Doodles have seen increased sales, indicating some exceptions to the overall downtrend.
Bybit's decision to shutter its NFT operations is also influenced by security concerns following a major security breach in late February, during which North Korea-linked hackers stole an estimated $1.4 billion in digital assets. This incident has added pressure on the exchange to reevaluate its risk exposure and operational focus. While certain niche collections continue to thrive, the challenges facing NFT marketplaces, from diminishing demand and falling volumes to mounting security risks, signify a sobering reality for a sector once seen as the future of digital ownership.