After three years of operation, NFT marketplace X2Y2 has announced it will cease operations by April 30, 2025, marking a significant shift as the team pivots to focus on artificial intelligence. The decision, shared in a March 31 statement, signals a new chapter for the company amid ongoing transformations in the crypto and digital asset landscape.
Describing the transition as a “pivot,” the X2Y2 team expressed enthusiasm about AI, calling it “the biggest paradigm shift we’ll see in our lifetimes.” The team emphasized their intention to build a new platform that integrates AI to create value in crypto markets. Though specific details remain scarce, the company teased a permissionless system designed to generate consistent yields across market cycles, indicating a move toward decentralized, AI-powered trading tools.
X2Y2, while not a dominant force in terms of volume, managed to secure the fourth-highest trading volume among NFT platforms over the past year, generating $53.6 million according to Token Terminal data. This placed it behind leaders Blur ($3 billion), OpenSea, and Immutable.
Despite the marketplace’s closure, industry experts insist this isn’t a sign of decline for the NFT sector. Charu Sethi, president at NFT-focused Unique Network, stated that NFTs are evolving beyond the speculative phase, finding real utility in areas like gaming, content authentication, and fan engagement. “The key is in valuing utility over speculation,” she said, noting projects like Mythical Games that integrate NFTs directly into gameplay.
Sethi added that marketplaces like X2Y2 must adapt by building ecosystems around utility and user engagement rather than relying solely on trading volumes. Her views were echoed by Alexander Salnikov, co-founder of Rarible, who said the industry is simply in a new phase of its growth cycle.
While AI-tied tokens have seen significant volatility, the X2Y2 team believes their upcoming platform could bring enduring value. “This isn’t just another project,” they stated, “it’s our shot at creating real, long-term value in crypto for the broader community we’re proud to serve.”
As NFT platforms evolve, X2Y2’s pivot may reflect a broader industry trend toward sustainable, utility-driven innovations powered by emerging technologies like AI.
