X2Y2 NFT Marketplace Closes After Three Years To Focus On AI

X2Y2, a notable NFT marketplace, is shutting down its operations on April 30 after three years. The team revealed a pivot into artificial intelligence (AI), describing the decision as the most significant technology shift in a lifetime. Despite its closure, X2Y2 generated $53.6 million in trading volume over the past year, placing it fourth among leading platforms behind Blur, OpenSea, and Immutable.

A Pivot to AI

In a March 31 announcement, X2Y2 explained it’s venturing into AI-driven solutions for crypto, hinting at a new platform that promises “yields in a permissionless way, powered by AI.” The pivot underscores X2Y2’s ambition to provide real, long-term value and remain relevant amid the rapidly evolving blockchain landscape. They envision enabling users to earn returns across both bull and bear cycles in a more decentralized, AI-powered trading environment.

End of a Market Cycle?

Industry insiders don’t interpret X2Y2’s closure as an indication of broad NFT market decline. Charu Sethi, president at Unique Network (a Polkadot and Kusama chain focusing on NFTs), called it a natural progression in the NFT space. She notes that while the speculative hype around collectibles is waning, NFTs are evolving into core infrastructure for sectors such as gaming, AI, fan engagement, and content authentication.

Alexander Salnikov, co-founder of Rarible, similarly sees it as part of a normal NFT market cycle. He asserts that NFT projects must pivot towards stronger use cases—gaming, digital identity, brand engagement—instead of relying on speculative trading alone.

Real-World Utility Takes Center Stage

Sethi and Salnikov both emphasize that future NFT success will rest on real-world usage over speculation. The next wave of NFT adoption will see:

• Strong in-game integration (e.g., Mythical Games)
• Daily active usage in blockchain-powered gaming and apps
• Utility-driven models where users benefit from continuous value, not just flips for profit

Sethi highlights the 7.4 million daily unique active wallets reached by the blockchain gaming sector in 2024, as reported by DappRadar. She stresses that NFT platforms need to foster resilient communities by tying tokens to tangible use cases—a strategy that counters the pitfalls of short-term speculation.

AI-Driven Future

Although X2Y2’s announcement offers scant detail on its exact AI solution, the team positions it as a “permissionless” yield platform harnessing machine intelligence. The shift follows a broader trend of AI tokens rising and falling dramatically, reminiscent of previous crypto cycles. If X2Y2 succeeds in bridging AI and decentralized finance (DeFi), it could spotlight how data-driven approaches reshape crypto trading.

As X2Y2 NFT marketplace closes, the pivot to AI highlights a broader movement toward utility-based models in crypto. Observers maintain that NFTs, though past their initial speculation-driven phase, remain a robust technology with game-changing potential. By integrating AI, X2Y2 aims to create a fresh value layer for users and stands as an example of how crypto platforms may reinvent themselves to align with evolving market demands.