Several South Korean retail giants, including Lotte and Hyundai, are exiting the non-fungible token (NFT) sector, marking a significant shift in their digital strategy.

The companies’ move follows a notable slowdown in the NFT market, prompting them to refocus their plans on their core business competencies.

According to a local South Korean news outlet, Lotte Home Shopping, the e-commerce arm of retail giant Lotte, announced it would end operations for its NFT shop platform.

Lotte launched its NFT services over the platform in May 2022. However, after just two years, the firm revealed on June 12 that it would shutter the NFT shop operations on July 2.

The platform, integrated into the Lotte Home Shopping mobile app, was initially part of the company’s strategy to develop a metaverse platform.

Lotte’s NFT Shop was distinct in its approach by using fiat KRW as the transaction currency to facilitate access for non-crypto users.

The company had expanded its NFT offerings by launching lines featuring its corporate character Bellygom and collaborating on projects with its virtual influencer Lucy and the hit 2022 horror movie “The Witch: Part 2. The Other One.”

Plans were also underway to enable secondary NFT sales on Opensea, the world’s largest NFT trading platform.

However, the recent closure signifies Lotte Home Shopping’s complete withdrawal from the NFT sector.

All remaining NFT business interests, including the Bellygom NFT, will be transferred to Daehong Communications, a crypto startup owned by the Lotte Group.

Hyundai Department Store is another major retailer that is stepping back from the NFT space. Launched in the same year as Lotte’s platform, Hyundai’s NFT wallet services offered customers various incentives such as discounts and free gifts. These services are now being discontinued as the company opts to exit the market.

Additionally, Shinsegae, another key player in the South Korean retail sector, has significantly reduced its NFT offerings. An industry insider revealed that many retailers had eagerly entered the NFT business but are now scaling down their operations as the market’s momentum wanes.

“Instead, they are focusing on strengthening the competitiveness of their core business areas,” the insider added.

Meanwhile, the latest trend of retail giants exiting NFT markets follows on the heels of South Korea’s shifting stance regarding NFTs.

Notably, the country’s top financial regulator is seeking to classify certain NFTs as virtual assets.

The move mandates that businesses issuing NFTs classified as virtual assets report them to the South Korean government body.

As Ethereum (ETH) retests the ,500 low amid the market-wide drop, CryptoQuant analyst ShayanBTC suggests the asset could face further declines if current trends in the futures market do not improve.

The recent market turbulence has driven multiple altcoins to their lowest levels in weeks. Notably, Ethereum recently slumped to the lower spectrum of the ,500 threshold for the first time in over three weeks, retesting the ,503 low earlier today. 

Amid the bearish conditions, investor anxiety has returned. Data from the futures market indicates that market participants have turned bearish, betting on steeper declines and a sustenance of the turbulence. 

In a recent analysis, ShayanBTC called attention to the Taker Buy Sell Ratio, which measures the aggressiveness of buyers versus sellers in the futures market. A ratio above one indicates that buyers are dominating, while a ratio below one suggests that sellers are more aggressive.

According to market data, the seven-day moving average of this ratio has been dropping recently, failing to climb above one. This downward trend indicates that most futures traders are selling Ethereum aggressively. 

Such behavior could be driven by speculation or profit-taking amid the current market conditions. ShayanBTC argues that the significant decline in this ratio serves as a bearish signal, suggesting that the downward trend in Ethereum’s price could continue if this selling pressure persists.

Meanwhile, despite derivatives volume spiking 131% to a record .8 billion, Ethereum’s long/short ratio, which measures the ratio of long (bullish) to short (bearish) positions, has witnessed a massive drop. This ratio has collapsed to 0.8921, suggesting a dominance of short positions, per Coinglass data.

Ethereum is currently trading at ,537 following a mild recovery from the ,503 floor price recorded earlier this morning. Despite a 3.58% drop today, the crypto asset trades above the 200-day EMA (,945) and 50-day EMA (,381).