Non-fungible token (NFT) marketplace X2Y2 announced its shutdown after three years of operation, effective April 30. The team has decided to pivot toward developing an artificial intelligence project. This transition reflects their belief in AI as a significant transformative force in the industry: > “It’s a pivot. Over the last 12 months, we’ve been diving deep into AI—hands down the biggest paradigm shift we’ll see in our lifetimes—and how it can transform crypto. We’re building something new.” According to data from Token Terminal, X2Y2 recorded a trading volume of $53.6 million over the past year, placing it fourth in the NFT marketplace rankings behind Blur, OpenSea, and Immutable. While this figure pales in comparison to market leader Blur's $3 billion, it still underscores the marketplace's position in the competitive landscape. Charu Sethi, president at Unique Network, emphasized that X2Y2's decision does not reflect a downturn in the NFT market. Instead, she believes that NFTs are transitioning into a new era focused on their utility in gaming, artificial intelligence, fan engagement, and content authentication: > “The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era.” Sethi pointed to initiatives like Mythical Games, which is integrating NFTs into gaming, and a DappRadar report highlighting that the blockchain gaming sector reached 7.4 million daily active wallets in 2024. She urged NFT platforms to shift their focus from reliance on marketplace network effects to building real-world applications and communities that promote consistent engagement. Alexander Salnikov, co-founder of Rarible, echoed these sentiments, asserting that the current market slump is part of a broader cycle. He believes the future of NFTs lies in projects with strong applications across sectors such as gaming and brand engagement: > “NFTs remain one of the most powerful primitives in crypto, and the next wave will be led by projects that focus on strong use cases.” While specific details about X2Y2's new AI-focused project were sparse, they hinted at creating a platform that enables users to earn profits throughout various market conditions, suggesting a decentralized approach to AI-powered trading: > “This isn’t just another project; it’s our shot at creating real, long-term value in crypto for the broader community we’re proud to serve.” Despite a dip in AI-related tokens earlier this year, the rise of AI-driven crypto initiatives shows signs of a potential revival, following a pattern similar to that of earlier ICO projects. The NFT market is at a turning point, with a growing emphasis on utility and real-world applications, signaling a significant shift in how NFTs will be leveraged moving forward.

The NFT marketplace X2Y2 has announced its shutdown after three years, with the closure set for April 30. The team plans to transition toward a new project focused on artificial intelligence (AI), which they believe will be a transformative force in the industry. They state, “It’s a pivot. Over the last 12 months, we’ve been diving deep into AI—hands down the biggest paradigm shift we’ll see in our lifetimes—and how it can transform crypto. We’re building something new.” Over the past year, Token Terminal data indicates that X2Y2 achieved a trading volume of $53.6 million, positioning it fourth among NFT marketplaces behind Blur, OpenSea, and Immutable. While this volume is significantly lower than Blur's $3 billion, it still highlights X2Y2’s competitive standing. Charu Sethi, president of Unique Network, emphasized that X2Y2's closure does not signify a decline in the NFT market. Instead, she described it as a shift toward a new era for NFTs, emphasizing their utility in gaming, AI, fan engagement, and content authentication. She remarks, “The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era.” Sethi pointed to substantial initiatives, such as Mythical Games’ integration of NFTs into gaming, alongside a DappRadar report indicating that the blockchain gaming sector reached 7.4 million daily active wallets in 2024. She urged NFT platforms to focus on real-world applications and community building rather than relying solely on marketplace network effects. Alexander Salnikov, co-founder of Rarible, agreed with Sethi, stating that the current market slump is part of a larger cycle. He noted that the next wave of NFTs would be driven by strong use cases, particularly in sectors such as gaming and brand engagement. X2Y2's announcement did not delve into specifics regarding their new AI project, but they hinted at creating a platform allowing users to earn profits throughout various market conditions, suggesting an approach to AI-powered trading that is decentralized. They remarked, “This isn’t just another project; it’s our shot at creating real, long-term value in crypto for the broader community we’re proud to serve.” Despite recent declines in AI-related tokens, the momentum for AI-driven crypto initiatives appears to be on the rise, mirroring the initial boom, bust, and subsequent resurgence seen during the ICO era. Overall, the NFT market is evolving, increasingly emphasizing utility and real-world applications.