Kraken shutting down its NFT marketplace just a year after its launch

• Kraken will shut down its NFT marketplace, transitioning to withdrawal-only mode in Nov. 27.
• Users can withdraw NFTs until February 2025, but can’t list or trade after Nov. 27.
• The closure follows declining NFT market volumes and Kraken’s focus on new ventures.

Kraken, one of the leading global cryptocurrency exchanges, has decided to shut down its NFT marketplace, just over a year after its official launch.

According to an email shared with users, the NFT marketplace, which debuted in beta in November 2022, will enter withdrawal-only mode on November 27, 2024, with full closure set for February 27, 2025.

Users will no longer be able to list, bid, or sell NFTs after November 27, but they can withdraw their assets to Kraken Wallets or self-custodial wallets until the final shutdown in February.

As the exchange shuts down the NFT marketplace, it has assured users that support will be available to help them transition their assets before the marketplace’s full closure.

Why is Kraken closing its NFT marketplace?

The closure of Kraken’s NFT platform marks a significant retreat from the once-booming NFT market. Launched with high hopes, the marketplace aimed to capitalize on the growing popularity of non-fungible tokens (NFTs), offering users the ability to buy, sell, and trade digital assets.

The NFT platform, notable for its lack of gas fees, had attracted a diverse range of NFT collections, reaching over 250 in total.

Kraken’s decision to close its marketplace is part of a broader trend among platforms reevaluating their positions in the sector.

Despite the initial enthusiasm, the NFT market has faced ongoing struggles throughout 2024. NFT trading volumes have failed to surpass $200 million per week since April 2024, with the market seeing a sharp decline from its 2022 peak.

In addition to the market downturn, Kraken has also faced increased competition from established NFT marketplaces like OpenSea and Blur.

So-callled news: @krakenfx is shutting down its NFT marketplace 😳

Wait, they had an NFT marketplace? 👀😂

How many of you are hearing about this for the first time?@KrakenNFT has never been in the NFT marketplace premier league, so this is probably the best decision! pic.twitter.com/0mNR1b524o

— Ofernan9000 (@Ofer_Nan) November 26, 2024

While the NFT market’s future remains uncertain, Kraken’s pivot suggests the company is preparing to focus on other innovative projects.

For many users, the closure signals the end of an era, with hopes that the NFT market may once again experience growth in the future.