After three dynamic years operating in the fast-evolving world of NFTs, X2Y2 has decided to close its marketplace doors and redirect its vision toward a new frontier: artificial intelligence. The announcement came on March 31, revealing that the platform will officially shut down on April 30. In a statement that captures the ambition of this shift, the X2Y2 team expressed its conviction in the growing synergy between AI and blockchain:
“It’s a pivot. Over the last 12 months, we’ve been diving deep into AI—hands down the biggest paradigm shift we’ll see in our lifetimes—and how it can transform crypto. We’re building something new.”
This strategic pivot comes after a year in which X2Y2 recorded $53.6 million in trading volume, according to data from Token Terminal. Though dwarfed by leading marketplace Blur’s $3 billion in the same period, X2Y2 maintained a respectable fourth-place spot behind Blur, OpenSea, and Immutable. Yet, this ranking hasn’t been enough to sustain its presence in a market that’s undergoing profound transformation, both technologically and philosophically.
From Marketplaces to Meaningful Utility
The closure of X2Y2 inevitably raises questions about the trajectory of the NFT sector. However, industry voices argue that rather than signaling a collapse, this development is part of a broader evolution. Charu Sethi, president at NFT-centered Unique Network—a blockchain built atop Polkadot and Kusama—offered a nuanced interpretation of this shift. Speaking with Cointelegraph, she emphasized the maturation of NFT technology from speculative collectibles to indispensable tools across various domains:
“The speculative phase focused on collectibles and trading is over, but NFTs are now entering their next growth era as core infrastructure enabling massive opportunities in gaming, AI, fan engagement and content authentication. Real-world implementation is key.”
Sethi underscored examples that illustrate this transition. For instance, Mythical Games has issued a considerable volume of NFTs on Polkadot to power in-game assets, a move backed by a significant $75 million fundraising round in 2021. Similarly, a recent report by DappRadar showed that the blockchain gaming industry reached a striking 7.4 million daily unique active wallets in 2024—evidence that user engagement in applications beyond trading is burgeoning.
In Sethi’s view, X2Y2’s exit from the NFT trading scene highlights a key limitation: relying solely on network effects and speculative momentum is insufficient for long-term viability. The future of NFTs, she believes, lies in integrating tokens into tangible, ongoing use cases:
“Platforms should pivot toward utility-driven models that incentivize consistent user engagement, whether through gaming, sports fandom or AI-backed applications. Successful platforms will create ecosystems where NFTs are part of an ongoing value cycle, not just speculative trading assets.”
An Industry Finding Its Maturity
This perspective is echoed by Alexander Salnikov, co-founder of NFT platform Rarible, who characterizes the current moment not as a downturn but as a natural phase in the larger cycle of innovation. In his view, the decline in speculative fervor is not the end, but a reset—one that paves the way for more grounded, functional applications of the technology:
“NFTs remain one of the most powerful primitives in crypto, and the next wave will be led by projects that focus on strong use cases, whether in gaming, digital identity or brand engagement.”
It’s an assessment that resonates with the changing mood in the NFT space. With the speculative bubble largely deflated, platforms now have the chance to redefine themselves around enduring value rather than fleeting hype.
Charting a Decentralized Future with AI
As X2Y2 moves forward, details about the new AI-based project remain limited, though the team has planted a few intriguing seeds. In its announcement, the company urged readers to envision a future characterized by “yields in a permissionless way, powered by AI.” Although still somewhat abstract, this hints at a decentralized platform that enables users to generate profits consistently across both bull and bear markets—a bold ambition in an industry often criticized for its volatility.
In describing their next venture, the team articulated a shift in intention that aims to reframe how value is pursued in the decentralized ecosystem:
“This isn’t just another project; it’s our shot at creating real, long-term value in crypto for the broader community we’re proud to serve.”
Of course, the timing is notable. Earlier in February, market data indicated that tokens associated with AI agents had plunged by as much as 90% from their 2024 highs. However, this downturn may mirror the early trajectory of other crypto innovations, likely following the familiar arc from initial excitement through a correction, and eventually, toward a revitalized phase of meaningful application. The early days of initial coin offerings (ICOs) provide a valuable analogy, many faltered or failed, but the survivors laid strong foundations for much of today’s crypto infrastructure.
X2Y2’s decision to leave the NFT marketplace behind and lean into AI represents not a retreat, but an evolution. It reflects a broader rethinking within the blockchain community – away from frenzied speculation and toward a future where technologies like NFTs and artificial intelligence converge to foster truly decentralized, sustainable ecosystems. Whether this pivot proves to be visionary or premature remains to be seen. But in embracing transformation, X2Y2 joins those pushing the boundaries of what’s next in crypto.
