Cryptocurrency exchange Binance has shutdown its non-fungible token (NFT) platform following a prolonged downturn in the market for digital art.
NFTs are digital art that contain a unique digital identifier recorded on a blockchain that certifies ownership and authenticity. They can also include digital baseball cards and comic books.
The NFT market peaked during the Covid-19 pandemic and saw annual trading volumes of more than $50 billion U.S. in 2022.
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But the market today generates about $5.5 billion U.S. in trading volumes following a prolonged downturn that has seen prices for NFTs collapse.
Binance said in a statement that users must withdraw transferable NFTs from its exchange before midnight on July 3 of this year or they will no longer be able to access those assets.
The exchange has directed users to transfer eligible NFTs to Binance Wallet or another external crypto wallet.
Privately held Binance had previously reduced its NFT offerings starting in 2024 when it became clear that the market was unlikely to recover.
Several other NFT businesses have shutdown in recent years, including platforms such as Nifty Gateway, Kraken NFT, and X2Y2.
As a private company, Binance’s stock does not trade on a public exchange.
