Key Takeaways:
- Immutable is closing its NFT marketplace on August 13 to support ecosystem growth.
- User assets will remain secure and accessible across compatible marketplaces.
- NFT sales volumes have significantly dropped, reaching a low of $429 million in July 2024.
YEREVAN (CoinChapter.com) — Immutable, a gaming and NFT blockchain, announced it will retire its NFT marketplace to concentrate on expanding its ecosystem through partnerships. This decision, effective from August 13, aims to support growth within the broader Immutable ecosystem rather than compete directly within the marketplace space.
Immutable Closes NFT Marketplace․ Source: Grow My Bag
In their announcement, Immutable emphasized that their marketplace was initially built to showcase the features of their software development kit (SDK). Despite its success, they believe the ecosystem will benefit more from supporting external marketplaces created with their tools.
“As a company, rather than compete, we would prefer to support these marketplaces and see the Immutable Ecosystem grow,”
Immutable wrote.
Immutable Guarantees Asset Security and Easy Access Across Marketplaces
The company assured users that their assets are secure and will remain accessible on the blockchain. These assets are tied to wallet addresses and will stay with users regardless of which marketplace or game they choose to use. This ensures users maintain control and access to their digital collectibles.
The network also highlighted that their marketplace uses a global order book. This feature allows similar listings to appear across different marketplaces using the same order book, providing continuity and ease of access for users. Immutable added that users need only connect their wallets to see their existing listings on any compatible marketplace.
NFT Sales Hit New Low in July 2024: CryptoSlam Reports
This strategic shift comes amidst a significant downturn in NFT sales volumes. In the second quarter of 2024, NFT sales saw a 45% drop compared to the previous quarter. The first quarter of 2024 recorded a volume of $4.1 billion, a sharp increase from the last quarter of 2023. However, this upward trend did not continue, with the second quarter recording only $2.24 billion in sales—the lowest since Q3 2023.
July 2024 further underscored this decline, marking the lowest sales volume for NFTs this year. According to CryptoSlam data, July saw a mere $429 million in sales.
Experts Optimistic About NFTs as Immutable Shifts Focus
Despite the current downturn, industry professionals remain confident in the future of NFTs. Randy Wasinger, founder of CryptoSlam, expressed his belief in the longevity of NFTs, stating that despite lower volumes, NFTs are “here to stay.”
Immutable’s decision to shut down its NFT marketplace reflects a strategic pivot to support the broader ecosystem. By enabling other marketplaces to thrive using their SDK, Immutable aims to drive growth within the NFT space, even amidst challenging market conditions.
