X2Y2 NFT exchange will close to focus on an AI-powered cryptocurrency project that aims to generate value sustainably and is utility-based.
After three years of operation, the non-fungible token (NFT) marketplace X2Y2 announced closing.
X2Y2 NFT Exchange Announces Closure
A March 31 announcement states that X2Y2 will close on April 30 and that the team will concentrate on an artificial intelligence project. The group expressed its excitement for the quickly expanding industry:
It’s a turnabout. We have spent the past 12 months studying artificial intelligence (AI), which is, without a doubt, the most significant paradigm shift that will occur in our lifetimes and how it can change cryptocurrency. We are constructing something new.
According to data from the Token Terminal, X2Y2 NFT Exchange saw $53.6 million in trading volume during the previous year. This places the protocol in fourth place, behind Blur, OpenSea, and Immutable, despite being a far cry from market leader Blur, which has a $3 billion trading volume.
According to Charu Sethi, president of the NFT-focused Polkadot and Kusama chain Unique Network, the decision does not indicate a downturn in the NFT market. She stated:
“As core infrastructure enabling massive opportunities in gaming, AI, fan engagement, and content authentication, NFTs are now entering their next growth era, but the speculative phase focused on collectables and trading is over.”
Implementation In the Real World is Crucial-Sethi
Sethi cited projects like Mythical Games’ issuance of numerous NFTs on Polkadot for in-game integration after raising $75 million in 2021. In 2024, the blockchain gaming industry reached 7.4 million daily unique active wallets, according to a DappRadar report, which she also cited.
“X2Y2’s experience demonstrates that NFT platforms cannot rely exclusively on marketplace network effects,” Sethi said. Instead, companies should focus on building communities and market resilience by building NFTs into real-world applications. She said that the key is in valuing utility over speculation.
“Platforms should pivot toward utility-driven models that incentivize consistent user engagement, whether through gaming, sports fandom or AI-backed applications,” Sethi said. “Successful platforms will create ecosystems where NFTs are part of an ongoing value cycle, not just speculative trading assets,” she added.
According to Rarible NFT marketplace co-founder Alexander Salnikov, who spoke to Cointelegraph, the apparent downturn is merely a phase of a broader NFT market cycle. His remarks supported Sethi’s, who also stated that utility is crucial and that NFTs are still among the most potent crypto primitives. Projects concentrating on compelling use cases—whether in gaming, digital identity, or brand engagement—will drive the next wave.
A New Pivot
The announcement contained very little information about the project that the X2Y2 team is working on. Still, the firm suggested that readers imagine yields in a permissionless way, powered by AI.
The new platform will reportedly allow users to earn profits throughout bear and bull markets and entire market cycles in a somewhat decentralized variation on AI-powered trading.
The announcement follows early February reports that tokens tied to artificial intelligence agents were down by as much as 90% from 2024 highs. Still, recent reports suggest that the rise of AI-driven crypto agents may be following a familiar trajectory that mirrors the initial boom, bust and resurgence of ICO-era projects.
