The NFT world is crumbling hard, and LG just pulled the plug on its Art Lab platform.
After three years of trying to make digital art shine on smart TVs, they’re calling it quits. The official line?
“We believe it’s the right time to shift our focus and explore new opportunities.” Sounds like a nice way of saying this isn’t working out.
The party is over
LG Art Lab was launched in September 2022, right when NFTs were all the rage. It was a big move, letting users buy, sell, and display digital art directly on their TVs.
But now, it’s just another casualty in a market that’s lost its steam.
By April 30, all NFTs will be transferred back to users’ wallets, and the platform will officially shut down on June 17.
Market crash
This isn’t an isolated incident, unfortunately it’s part of a larger trend. Kraken closed its NFT marketplace in February, and Nike’s RTFKT shut down last December.
The NFT market has been in free fall since its peak in 2021. Remember when NFTs like CryptoPunks and Bored Ape Yacht Club were making headlines?
Now, weekly trading volumes are a fraction of what they used to be, less than $100 million compared to the $3.24 billion in August 2021.
Dormancy
The pandemic response fueled the initial NFT frenzy as people turned to digital experiences during lockdowns.
But since then, the market has faced challenges like oversaturation and declining consumer interest.
It’s not just LG, platforms like MakersPlace and GameStop have also bitten the dust.
The NFT market cap has plummeted by over 90% since 2021. That’s a harsh reality check for a sector that once promised so much.
So, what’s next for NFTs? Some experts believe they’ll make a comeback, but for now, it’s a tough sell.
The technology is still there, but the hype is gone. As LG and others shift focus, it’s clear that the NFT bubble has burst. It’s time to face the music, the NFT party is over, at least for now.
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