Cryptocurrency exchange Bybit is pulling the plug on its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering services effective April 8, 2025, amid a spectacular industry-wide collapse in digital collectible trading.
The once-booming NFT market has withered dramatically, with daily trading volumes plummeting from a robust $113.6 million in December 2024 to a mere $5.34 million in 2025—equivalent to dropping from a mansion to a studio apartment in the digital real estate world.
The closure comes in the wake of February’s devastating security breach that cost Bybit $1.4 billion—the largest crypto heist on record. This digital smash-and-grab, attributed to North Korean hackers, left the exchange scrambling to address security protocols and manage liquidity concerns.
Think of it as trying to renovate your kitchen while the house is on fire—priorities had to shift.
Market conditions have turned brutally unfavorable for NFT platforms. High-profile collections that once commanded eye-watering prices have crashed spectacularly, with Bored Ape Yacht Club values tumbling 90% from their peak.
The number of active NFT trading wallets has shrunk from over 500,000 during the market’s heyday to fewer than 20,000 in 2025—about the same attendance as a minor league baseball game.
Bybit isn’t sailing this sinking ship alone. Kraken, X2Y2, RTFKT, and LG Art Lab have all shuttered their NFT operations, citing similar concerns.
Centralized platforms are increasingly losing market share to decentralized alternatives, which operate with fewer regulatory hoops to jump through.
Regulatory headwinds have further complicated matters, with Know Your Customer requirements increasing compliance costs just as profits were evaporating.
The company’s decision also reflects its intention to refocus on core operations, a strategic move to concentrate resources on more profitable services like spot and futures trading.
It’s like being asked to install an expensive security system on a business that’s barely breaking even.
CryptoPunks has seen its floor price drop to 42.59 ETH, representing a 66% decline from its peak of 125 ETH in August 2021.
Users have been advised to transfer their digital assets to private wallets before the April shutdown date.
Alternative platforms like OpenSea, Blur, and Magic Eden await those still interested in trading digital collectibles in a market that’s shifted dramatically from speculation toward utility-based applications.
The exodus from traditional NFT marketplaces highlights how DeFi innovations are reshaping the financial landscape beyond conventional crypto exchange services.
