qerranews 
The non-fungible token (NFT) market is undergoing a significant transformation, with declining trading volumes forcing major players to reassess their positions. In a recent move, cryptocurrency exchange Bybit announced that it would be shutting down its NFT and Inscription marketplaces, as well as its initial decentralized exchange offering initiative, on April 8 at 4:00 pm (UTC).
This decision aligns with Bybit’s broader strategy to streamline its services, responding to a market shift from speculative trading toward more utility-based applications of NFTs. The announcement follows a similar move by X2Y2, another major NFT marketplace, further emphasizing the overall downturn in NFT trading activity.
The Changing Landscape of NFTs
Charu Sethi, president of NFT-focused Polkadot and Kusama chain Unique Network, highlighted this transition, noting that the speculative phase of NFTs—where collectors and traders drove the market—has ended. Instead, NFTs are evolving into a tool for applications in gaming, artificial intelligence (AI), fan engagement, and content authentication.
Despite this shift, the market’s numbers reveal a significant drop in interest. Over the past year, daily NFT trading volume has fallen by approximately 70%, from over $18 million to just $5.34 million. The decline becomes even starker when compared to the peak trading volume on December 17, 2024, which exceeded $113.6 million—marking a 95% drop.
Weak Investor Interest and Struggling Projects
The decline in speculative interest is evident across various projects. For example, Gutter Cat Gang (GCG) recently experienced a rocky launch of its GANG token on Apechain. The launch, attributed to a “technical issue” by a third party, was met with skepticism from some observers who pointed to a lack of investor interest. Reports indicate that the token sale raised only 3.66 Ether (ETH), or around $6,800—falling drastically short of its $1 million target.
Furthermore, an NFT market report from late March showed that overall NFT sales in the first quarter of 2025 dropped by 63% year-over-year. However, not all projects have struggled. Certain collections, including Doodles, Milady Maker, and Pudgy Penguins, have managed to defy market trends and continue performing well.
The Future of NFTs
While Bybit’s exit from the NFT space is a reflection of declining speculative interest, it does not necessarily spell the end for NFTs. Instead, the industry is evolving toward practical applications, integrating NFTs into broader digital ecosystems. Gaming, AI, and content verification could represent the next wave of NFT adoption, shifting the focus from hype to real-world use cases.
As the market recalibrates, projects that offer tangible value rather than mere speculation may emerge as the future leaders of the NFT space.