Bybit shuts doors on NFT marketplace as interest wanes

Bybit announced plans to shut down its NFT Marketplace, Inscription Marketplace, and Initial DEX Offering (IDO) product pages to “streamline offerings and enhance user experience.”

The exchange is the latest platform to exit a digital collectibles market that has seen demand, trading volume, and user activity sharply decline over the past two years.

The closure will take effect on April 8 at 16:00 UTC. Users have been advised to transfer assets from their Bybit web3 wallets before the deadline.

NFT trading volume collapse

The shutdown follows a broader trend of waning institutional interest in NFTs. Kraken recently shut down its own NFT marketplace, while LG Electronics has discontinued its NFT platform, LG Art Lab, after three years of activity.

Data from blockchain analytics firm DappRadar shows that trading volumes for top NFT collections have plummeted more than 95% since the market’s peak in 2021. The number of active wallets engaging in NFT trades has fallen from over half a million to less than 20,000 as of 2025.

Total NFT sales fell to $1.5 billion during the first quarter, down from $4.1 billion in the same period last year — a 63% year-over-year drop. Sales in March alone were down 76% compared to the prior year.

Collections once synonymous with NFT hype, such as Bored Ape Yacht Club, no longer command significant trading volumes, though a few projects have bucked the trend.

Pudgy Penguins saw a 13% sales increase in the first quarter, reaching $72 million, while Doodles benefited from a recent partnership with McDonald’s to hit $32 million in quarterly sales.

Security concerns

Bybit’s retreat also comes amid lingering concerns following a major security breach in late February.

The exchange was targeted by North Korea-linked hackers who stole an estimated $1.4 billion in digital assets. Much of the stolen crypto has yet to be recovered, adding pressure on the exchange to reevaluate risk exposure and operational focus.

Bybit’s pivot illustrates the challenges facing NFT marketplaces, from diminishing demand and falling volumes to mounting security risks. While some niche collections remain active, the broader picture paints a sobering view of a sector once thought to be the future of digital ownership.