X2Y2 NFT Marketplace Shuts Down in April 2025, Pivots to AI Crypto Project

Historical Context and X2Y2’s Rise and Fall

X2Y2 entered the NFT market in February 2022, quickly establishing itself as a formidable player. At its peak in May 2022, it recorded a monthly trading volume of $209 million, amassing a total trading volume of $5.6 billion and briefly becoming the second-largest NFT marketplace behind OpenSea (NFT Marketplace X2Y2 To Shut Down After 3 Years as Trading Volume Drops 90% | CoinMarketCap). Its innovative approach, including rewarding traders and collectors, helped it compete with established platforms like Blur. However, the NFT market, which saw explosive growth in 2021-2022, has since experienced a significant downturn, with trading volumes for top Art NFT collections dropping by an average of 95% since 2021 (NFT marketplace X2Y2 shuts down amid slump, plans crypto AI pivot | Cryptopolitan).

The native token, X2Y2, has also seen a drastic decline, dropping 13% in the past 24 hours to $0.0014 as of recent reports, with a market cap below $540,000, down over 99% from its all-time high of $4.14 in February 2022 (NFT Marketplace X2Y2 To Shut Down After 3 Years as Trading Volume Drops 90% | CoinMarketCap). This decline mirrors the broader challenges faced by NFT platforms, with competitors like Bybit, LG Art Lab, Kraken, and Nike’s RTFKT also winding down related operations (X2Y2 to shut down NFT marketplace after three years | The Express Tribune).

Reasons for Shutdown: Market Dynamics and Competition

The decision to shut down, as articulated by X2Y2’s pseudonymous founder, TP, in a March 31, 2025, statement, is primarily driven by a 90% drop in trading volume since the market’s peak (Ethereum NFT Marketplace X2Y2 to Shut Down as Team Shifts to AI | Decrypt). TP noted, “Marketplaces live or die by network effects. We fought to be #1, but after three years, it’s clear it’s time to move on” (NFT Marketplace X2Y2 To Shut Down After 3 Years as Trading Volume Drops 90% – Finance Yahoo). This reflects the intense competition and the broader market contraction, where newer platforms and changing user preferences have eroded X2Y2’s position. The company’s predicament is not isolated, as evidenced by similar shutdowns in the sector, highlighting a common challenge in the web3 space (NFT Platform X2Y2 Shuts Down Amid Market Struggles – Cryptoflies News).

The Pivot to AI: A New Frontier in Crypto

While closing its NFT marketplace, X2Y2 is not exiting the crypto industry. The company is pivoting to an AI-driven project focused on permissionless yield generation, effective across market cycles. TP described this shift as, “AI is the biggest paradigm shift we’ll see in our lifetimes. Our next project uses AI to enable users to earn yields in a decentralized way” (NFT Marketplace X2Y2 Shuts Down To Explore AI | FullyCrypto). This move aligns with growing interest in integrating artificial intelligence with blockchain technology, potentially offering innovative solutions for decentralized finance (DeFi) and yield farming.

The specifics of the AI project remain under wraps, but it hints at leveraging AI for smarter, more efficient yield generation, possibly through predictive analytics or automated trading strategies. This pivot reflects a broader trend where crypto companies are exploring AI to enhance functionality, reduce costs, and attract new users, especially as traditional NFT markets face saturation. https://crypublishx.com/arthur-hayes-analysis-trumps-trade-order-and-the-s/