{"id":22286,"date":"2025-04-16T11:23:49","date_gmt":"2025-04-16T11:23:49","guid":{"rendered":"https:\/\/metaverseplanet.net\/blog\/?p=22286"},"modified":"2025-12-29T11:30:31","modified_gmt":"2025-12-29T11:30:31","slug":"bybit-closes-nft-marketplace-over-security-and-market-decline","status":"publish","type":"post","link":"https:\/\/metaverseplanet.net\/blog\/bybit-closes-nft-marketplace-over-security-and-market-decline\/","title":{"rendered":"Bybit Closes NFT Marketplace Over Security and Market Decline"},"content":{"rendered":"\n

Bybit<\/strong>, one of the world\u2019s leading cryptocurrency exchanges<\/strong>, has announced that it will close its NFT marketplace<\/strong> effective April 8<\/strong>. The move comes as part of a strategic decision to refocus on the company\u2019s core services<\/strong>, while also addressing growing security challenges<\/strong> and a broader NFT market downturn<\/strong>.<\/p>\n\n\n\n

A Sudden Move Reflecting Market Trends and Security Risks<\/h2>\n\n\n\n

The closure follows a major cybersecurity breach<\/strong> in February, which resulted in the theft of approximately $1.46 billion in digital assets<\/strong>\u2014one of the largest crypto-related hacks<\/strong> in history.<\/p>\n\n\n\n

Citing both internal strategy<\/strong> and external threats<\/strong>, Bybit has urged users to transfer their NFT holdings<\/strong> to external wallets before the deadline. The platform emphasized its goal to strengthen user security<\/strong> and streamline operations in its main business areas.<\/p>\n\n\n\n

NFT Activity Continues to Decline in 2025<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Bybit\u2019s exit reflects the broader decline in NFT trading volume<\/strong>. In Q1 2025, global NFT sales dropped by 63%<\/strong>, falling from $4.1 billion<\/strong> in the same period last year to $1.5 billion<\/strong>. March alone witnessed a 76% drop<\/strong> in sales\u2014from $1.6 billion in 2024<\/strong> to just $373 million<\/strong> this year.<\/p>\n\n\n\n

Despite the downturn, some projects defied the trend. The Pudgy Penguins<\/strong> collection saw a 13% rise<\/strong> in sales, reaching $72 million<\/strong>, while Doodles<\/strong> boosted its visibility with a $32 million McDonald\u2019s partnership<\/strong>. Ethereum-based Milady Maker<\/strong> also gained traction with a 58% surge<\/strong> in investor interest.<\/p>\n\n\n\n

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NFT Platforms Exit While Others Evolve<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

Bybit isn\u2019t the only platform stepping away from NFTs. Long-standing NFT marketplace X2Y2<\/strong>, which launched in 2021, recently announced its closure after three years of operation, redirecting focus to a new AI-powered crypto project<\/strong>.<\/p>\n\n\n\n

Similarly, tech giant LG<\/strong> revealed plans to shut down its TV-based NFT platform<\/strong>, Art Lab<\/strong>, on June 17<\/strong>, ending an initiative launched during the 2022 NFT boom.<\/p>\n\n\n\n

These decisions reflect the evolving landscape<\/strong> of NFTs, where some players are exiting, while others pivot to emerging opportunities.<\/p>\n\n\n\n

Hope for NFTs in the Next Chapter<\/h2>\n\n\n\n

Despite widespread closures, NFTs are not dead<\/strong>. Analysts argue that the sector is undergoing transformation<\/strong>, rather than disappearing. New applications in Web3 gaming<\/strong>, tokenized physical assets<\/strong>, and next-generation digital identity<\/strong> could pave the way for a new era of NFTs<\/strong>.<\/p>\n\n\n\n

In March, investment firm Canary Capital<\/strong> filed for an NFT-focused ETF<\/strong> with the U.S. Securities and Exchange Commission (SEC)<\/strong>. The proposed ETF would invest in Pudgy Penguins NFTs<\/strong>, their utility token PENGU<\/strong>, and NFT-related cryptocurrencies<\/strong> like Ethereum (ETH)<\/strong> and Solana (SOL)<\/strong>.<\/p>\n\n\n\n

Bybit Stays Committed to Blockchain Despite Exit<\/h2>\n\n\n\n
\"\"<\/figure>\n\n\n\n

While stepping away from the NFT sector<\/strong>, Bybit remains dedicated to blockchain innovation<\/strong>. In response to February\u2019s security breach, the company pledged to overhaul its security infrastructure<\/strong>, with updated protocols<\/strong> and a renewed focus on user protection<\/strong>.<\/p>\n\n\n\n

Final Thoughts: An End or a New Beginning?<\/h2>\n\n\n\n

Bybit\u2019s NFT market closure is not necessarily a signal of the end\u2014but rather the beginning of a new chapter<\/strong>. As the NFT market contracts<\/strong>, industry players are repositioning, regulations are tightening, and technologies are evolving. The sector may be at a turning point, ready to reinvent itself for the next phase of digital ownership<\/strong>.<\/p>\n\n\n\n\n

    <\/ul>","protected":false},"excerpt":{"rendered":"

    Bybit, one of the world\u2019s leading cryptocurrency exchanges, has announced that it will close its NFT marketplace effective April 8. The move comes as part of a strategic decision to refocus on the company\u2019s core services, while also addressing growing security challenges and a broader NFT market downturn. A Sudden Move Reflecting Market Trends and …<\/p>\n","protected":false},"author":1,"featured_media":19757,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"googlesitekit_rrm_CAown96uCw:productID":"","footnotes":""},"categories":[309],"tags":[316],"class_list":["post-22286","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-web3new","tag-nft"],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts\/22286","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/comments?post=22286"}],"version-history":[{"count":0,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/posts\/22286\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/media\/19757"}],"wp:attachment":[{"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/media?parent=22286"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/categories?post=22286"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/metaverseplanet.net\/blog\/wp-json\/wp\/v2\/tags?post=22286"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}