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The non-fungible token (NFT) marketplace X2Y2 has announced its decision to shut down after three years of operation, signaling a shift toward artificial intelligence-driven crypto solutions. The team plans to discontinue the platform on April 30 and focus on a new AI-based project aimed at creating long-term utility and value within the crypto space.
X2Y2’s Market Position and Transition
Despite not being the top player in the NFT industry, X2Y2 managed to secure a spot among the leading marketplaces. Over the past year, the platform recorded $53.6 million in trading volume, ranking fourth behind Blur, OpenSea, and Immutable. However, the competitive landscape of NFT trading has evolved, and X2Y2’s leadership believes that marketplace network effects alone are not enough to sustain long-term success.
With this in mind, the team has opted for a strategic pivot, moving away from NFT trading and toward an AI-powered platform that seeks to generate value across different market conditions. Although specific details about the project remain scarce, X2Y2 hinted at an AI-driven system that could enable permissionless yield generation, appealing to users in both bull and bear markets.
The Changing Landscape of NFTs
The shift in focus aligns with broader trends in the NFT industry. According to Haru Sethi, president of the NFT-centric Unique Network on Polkadot and Kusama, the market is moving beyond speculative trading. She argues that the next phase of NFT adoption will be driven by real-world utility in areas like gaming, AI, fan engagement, and digital content authentication.
Sethi pointed to examples such as Mythical Games, which raised $75 million in 2021 and has since integrated NFTs into its gaming ecosystem. Similarly, a report from DappRadar highlights that blockchain gaming reached 7.4 million daily active wallets in 2024, reinforcing the idea that NFTs must be embedded in real-world applications rather than existing purely as speculative assets.
The Future of Utility-Driven NFTs
Experts in the space, including Rarible co-founder Alexander Salnikov, believe that NFTs remain one of the most powerful tools in the crypto industry. However, for long-term sustainability, platforms must prioritize strong use cases over market speculation. Successful projects will integrate NFTs into broader ecosystems, whether through gaming, digital identity, or AI-backed applications.
While X2Y2’s next project remains a mystery, its decision to move toward AI suggests that the industry is entering a new phase—one that emphasizes continuous value creation rather than short-term trading hype. Whether AI-powered crypto solutions can redefine market dynamics remains to be seen, but the shift signals a growing recognition that the NFT industry must evolve beyond its early speculative phase.