Kraken, a centralized exchange, announced the closure of its NFT marketplace amid a downturn in the digital collectibles market. Users will no longer be able to list, bid, or sell after November 27, 2024. Withdrawals will remain available until February 27, 2025.

The NFT platform was launched in November 2022 but failed to meet growth expectations due to an oversaturated market. Throughout 2024, 98% of NFT collections saw little or no trading, and most new NFT drops lost significant value quickly.

In addition, NFT holders have faced losses averaging 44.5% since 2023, with the average NFT lifespan now just over a year. Kraken plans to reallocate resources towards listing new tokens and exploring new developments.

Despite the decline, reports of increased NFT activity on platforms like Telegram, along with the minting of Patron NFTs by Vitalik Buterin, show potential signs of recovery in the NFT sector.