Kraken Closes NFT Marketplace Amid Market Challenges | Airdrop Alert Pro

Centralized exchange Kraken will cease operations NFT market Allocate resources to upcoming projects. After November 27, 2024, users will no longer be able to list, bid, or sell items.

However, withdrawals will remain valid until the market is completely closed on February 27, 2025.

Kraken’s NFT platform fails to achieve expected growth

Kraken notified users of the decision via email earlier today statement. Kraken’s NFT platform, which launched in November 2022, faces challenges as the digital collectibles market softens. Over the past few years, the landscape has become extremely saturated.

Throughout 2024, 98% of NFT collections have experienced Little or no trading activity. Only 0.2% of new NFT drops generate a profit, while most lose more than 50% of their value within a few days.

On average, NFT holders lost 44.5% Since 2023. The average lifespan of an NFT is now 1.14 years, significantly shorter than the 2.85 years of a typical crypto project. Nearly one-third of NFT schemes failed last year, the highest failure rate ever recorded in the industry.

Therefore, Kraken’s decision comes as no surprise. It’s obvious why the exchange decided to reallocate its resources to other key developments.

The U.S.-based cryptocurrency exchange recently announced plans to optimize its policies and 19 new coins listed. This also includes “Trump” coin inspired by Donald Trumpand other popular Meme Coin.

During the downturn, there were also signs of recovery. Telegram reports 400% surge in NFT activity In the third quarter of 2024, NFTs will be integrated into gaming platforms (e.g. Hamster fighting. Until September, every day wallet The transfer amount exceeded one million.

Additionally, there was recently an address associated with Ethereum co-founder Vitalik Buterin 400 Patron NFTs minted on Base. This has sparked new discussions about the potential renaissance of NFTs as the industry looks for new use cases.