X2Y2, one of the largest NFT marketplaces, has announced it will cease operations on April 30, 2025, as it pivots towards artificial intelligence with a crypto focus.

Since its launch in 2022, X2Y2 briefly surpassed OpenSea, reaching over $5.6 billion in trading volume. However, declining NFT sales and rising competition, particularly from Blur, made it difficult to sustain its position.

Founder TP stated that despite efforts to remain competitive, stepping away from the NFT market was necessary. X2Y2’s smart contracts will remain functional, though users will no longer be able to instantly withdraw funds.

Following the announcement, the X2Y2 token dropped 7%, extending its 89% decline over the past year. Meanwhile, the NFT market continues to struggle, with leading platforms experiencing massive drops in trading volume and sales.