Hyperspace shuts down NFT marketplace on Solana

Hyperspace, a multi-chain non-fungible token marketplace and launchpad, is shutting down its platform on Solana.

The project announced this on Sept. 3, noting that the decision to shut down its NFT marketplace on Solana (SOL) was a difficult one. Hyperspace plans to fully sunset the Solana offering by September 17, 2024, and has advised users to delist their NFTs before this date.

In addition to removing website support for Solana NFTs, the platform will also sunset its application programming interface. This will begin on Sept. 17, as the Hyperspace team posted on X.

“While it’s a difficult decision to make, we’re proud of having been a part of this vibrant ecosystem since Solana summer first started and we’re excited for all that’s to come.”

Hyperspace Avalanche and Sui NFT marketplaces

Hyperspace launched in 2021, entering the market just as the NFT boom followed the Covid pandemic. The platform boasted backing from some of the biggest crypto venture capital firms in the industry, including Dragonfly, Pantera, and Coinbase Ventures.

Despite a slowdown in NFTs in late 2021 and 2022, Hyperspace quickly grew. Apart from Solana, the NFT marketplace is shutting down on Sui (SUI).

Are NFTs dead?

In the broader digital collectibles market, projects such as CryptoPunks, Bored Ape Yacht Club, Pudgy Penguins, and Art Blocks remain top NFTs by sales and volume.

However, the NFT market has failed to see any meaningful recovery since the broader crypto market’s slump during the 2022 bear market.

A recent report suggests that nearly 96% of NFT projects are dead, with 43% of holders currently at a loss. Declines in volume amid this collapse have impacted NFT marketplaces and aggregators, including market leaders OpenSea, Magic Eden, LooksRare, and Blur.

The bear market aside, regulatory issues are also likely to be a major factor. Recently, the U.S. Securities and Exchange Commission issued a Wells Notice to OpenSea over allegations of offering unregistered securities.