NFT Marketplace X2Y2 Announces Suspension of Operations, Token Tanks

Coinspeaker
NFT Marketplace X2Y2 Announces Suspension of Operations, Token Tanks

Non-fungible token (NFT) marketplace X2Y2 has announced that it will shut down operations on April 30, 2025, marking the end of a three-year journey that once saw it rise to the second-largest NFT marketplace after OpenSea.

The platform, which amassed a cumulative trading volume of $5.6 billion, said that declining NFT trading volumes, despite a brief surge in November, and network issues affected X2Y2’s user base and operations.

Addressing the Community

X2Y2’s founder TP addressed the community, recalling the platform’s journey since its beta launch on February 6, 2022.

He acknowledged the marketplace’s past success, including its peak as the second-largest NFT platform and its impressive trading volume.

2/ What a ride it’s been. We peaked as the 2nd largest NFT marketplace behind OpenSea, reached $5.6B in trading volume, and even today stand as the 3rd largest in the space. I’m immensely grateful to our amazing community who made this possible. pic.twitter.com/0b0MWIWc2f

— TP | X2Y2 (@tp_x2y2) March 31, 2025

However, he noted that despite the team’s efforts, the sharp decline in NFT trading activity and the loss of network effects made it clear that continuing operations was no longer viable.

While the platform will shut down, its smart contracts will remain functional, allowing users to access them if needed.

A Pivot to AI-Powered Crypto Innovation

Instead of viewing this as an end, TP emphasized that X2Y2’s closure marks the beginning of a new focus.

Over the past year, the team has been exploring AI’s role in decentralized finance and plans to build a new project centered on permissionless yield generation powered by AI.

The goal is to create a sustainable, long-term value proposition rather than following short-lived market trends.

5/ We’re building something new: yields in a permissionless way, powered by AI. It’s decentralized, innovative, and designed to create value cycle after cycle – not just riding trends.

— TP | X2Y2 (@tp_x2y2) March 31, 2025

The founder urged the community to stay engaged, assuring them that the team’s next initiative will be built with innovation and longevity in mind.

Impact on the X2Y2 Token

Following the announcement, the X2Y2 token dropped 6.54% in the past 24 hours, reaching $0.001541.

Over the past year, it has suffered a significant 90% decline and now ranks 3836th on CoinMarketCap. The 20-day Exponential Moving Average (EMA) at $0.0017545 presents immediate resistance for the X2Y2 token.

TP acknowledged that the token’s value was closely tied to the NFT marketplace’s vision, and the shutdown would inevitably impact its price.

While recognizing the challenges, he maintained that the shift toward AI-driven solutions would ultimately create greater long-term value for the community.

As per the chart above, it is clear that the Relative Strength Index (RSI) has entered oversold levels for the X2Y2 token while the gradient of the line suggests further downside.

On the other hand, the price action of the altcoin is breaking out of the lower end of the Bollinger Bands (BB), losing crucial support. If the lower Band at $0.0015853 isn’t reclaimed soon, X2Y2 faces the risk of further downside.

The End of an Era for X2Y2

X2Y2’s closure is indicative of broader struggles in the NFT sector, which has seen declining interest and liquidity in recent years.

Rather than continuing to fight for relevance in a shrinking market, the team has chosen to pivot toward AI and decentralized finance.

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NFT Marketplace X2Y2 Announces Suspension of Operations, Token Tanks