Digital art platform to wind down services, reflecting broader challenges in the NFT market.

On Jan. 17, MakersPlace, a digital art platform founded in 2018, announced its decision to shut down. The platform operated as an NFT marketplace, allowing artists and collectors to create, buy, and sell digital artworks. However, ongoing challenges in the NFT industry and difficulties in securing additional funding prompted the decision.

As part of the shutdown, MakersPlace has disabled new account creation, token imports, and minting effective immediately. While no new exhibitions or events will be held, existing artworks will remain available for purchase for a limited time.

The company has pledged to assist artists and collectors in transferring their assets, ensure employees receive severance payouts, and return unused funds to investors.

As MakersPlace prepares to wind down operations, it has advised users to transfer their assets from the platform’s custodial wallets to their wallets. The company plans to introduce an upgraded transfer feature in February 2025, with the current transfer deadline set for June 2025.

This closure comes amid a turbulent period for the NFT market. According to a DappRadar report, NFT trading volumes in 2024 experienced sharp declines, dropping from $5.3 billion in the first quarter to $1.5 billion in the third, before recovering slightly to $2.6 billion in the fourth.

In 2024, NFT trading volumes decreased by 19% and sales fell by 18% compared to 2023, making it one of the lowest-performing years for NFTs since 2020.

Non-fungible tokens are digital assets that use blockchain technology to verify ownership of unique items such as art, music, or collectibles. While the technology gained widespread attention and adoption in 2021, recent trends have highlighted its volatility and the challenges of sustaining market momentum.