Digital art platform MakersPlace, a key player in the NFT marketplace since its launch in 2018, has announced its decision to cease operations, citing the ongoing struggles within the NFT industry. The platform, known for allowing artists and collectors to create, buy, and sell digital artworks as non-fungible tokens (NFTs), has faced mounting challenges, including difficulties securing additional funding.
Effective immediately, MakersPlace has disabled new account creations, token imports, and minting capabilities. No new exhibitions or events will be hosted, although existing artworks will remain available for purchase for a limited time.
In preparation for the shutdown, MakersPlace has committed to assisting artists and collectors in transferring their digital assets and ensuring employees receive severance payouts. Additionally, the company will return unused funds to investors.
The platform has urged users to move their assets from its custodial wallets and will introduce an upgraded transfer feature in February 2025. The deadline for asset transfers is set for June 2025.
This closure comes amidst a challenging period for the NFT market. A report from DappRadar revealed a significant drop in NFT trading volumes in 2024, from $5.3 billion in the first quarter to $1.5 billion by the third quarter. While the market saw a slight recovery in the fourth quarter, total trading volumes decreased by 19% compared to 2023, marking one of the weakest years for NFTs since their rise in 2021.
The decline in market activity underscores the volatility and challenges facing NFTs, which use blockchain technology to authenticate ownership of digital assets like art, music, and collectibles. Despite initial enthusiasm, the NFT space has struggled to maintain momentum as market dynamics shift.
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