Bybit, one of many world’s main cryptocurrency exchanges, has introduced that it’ll shut its NFT market efficient April 8. The transfer comes as a part of a strategic resolution to refocus on the corporate’s core providers, whereas additionally addressing rising safety challenges and a broader NFT market downturn.
A Sudden Transfer Reflecting Market Traits and Safety Dangers
The closure follows a significant cybersecurity breach in February, which resulted within the theft of roughly $1.46 billion in digital belongings—one of many largest crypto-related hacks in historical past.
Citing each inner technique and exterior threats, Bybit has urged customers to switch their NFT holdings to exterior wallets earlier than the deadline. The platform emphasised its purpose to strengthen consumer safety and streamline operations in its major enterprise areas.
NFT Exercise Continues to Decline in 2025
Bybit’s exit displays the broader decline in NFT buying and selling quantity. In Q1 2025, international NFT gross sales dropped by 63%, falling from $4.1 billion in the identical interval final yr to $1.5 billion. March alone witnessed a 76% drop in gross sales—from $1.6 billion in 2024 to simply $373 million this yr.
Regardless of the downturn, some tasks defied the pattern. The Pudgy Penguins assortment noticed a 13% rise in gross sales, reaching $72 million, whereas Doodles boosted its visibility with a $32 million McDonald’s partnership. Ethereum-based Milady Maker additionally gained traction with a 58% surge in investor curiosity.
NFT Platforms Exit Whereas Others Evolve
Bybit isn’t the one platform stepping away from NFTs. Lengthy-standing NFT market X2Y2, which launched in 2021, not too long ago introduced its closure after three years of operation, redirecting focus to a brand new AI-powered crypto mission.
Equally, tech large LG revealed plans to close down its TV-based NFT platform, Artwork Lab, on June 17, ending an initiative launched in the course of the 2022 NFT growth.
These choices replicate the evolving panorama of NFTs, the place some gamers are exiting, whereas others pivot to rising alternatives.
Hope for NFTs within the Subsequent Chapter
Regardless of widespread closures, NFTs aren’t useless. Analysts argue that the sector is present process transformation, fairly than disappearing. New functions in Web3 gaming, tokenized bodily belongings, and next-generation digital id may pave the way in which for a brand new period of NFTs.
In March, funding agency Canary Capital filed for an NFT-focused ETF with the U.S. Securities and Trade Fee (SEC). The proposed ETF would spend money on Pudgy Penguins NFTs, their utility token PENGU, and NFT-related cryptocurrencies like Ethereum (ETH) and Solana (SOL).
Bybit Stays Dedicated to Blockchain Regardless of Exit
Whereas stepping away from the NFT sector, Bybit stays devoted to blockchain innovation. In response to February’s safety breach, the corporate pledged to overtake its safety infrastructure, with up to date protocols and a renewed deal with consumer safety.
Closing Ideas: An Finish or a New Starting?
Bybit’s NFT market closure is just not essentially a sign of the tip—however fairly the start of a brand new chapter. Because the NFT market contracts, trade gamers are repositioning, laws are tightening, and applied sciences are evolving. The sector could also be at a turning level, able to reinvent itself for the subsequent part of digital possession.
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