At a Glance
- Gemini is shutting down its NFT marketplace, Nifty Gateway, on February 26th.
- The decision follows a broader downturn in the NFT market, which has lost nearly 99% of its value since 2022.
- Competitors Coinbase and Kraken also exited the space in 2024, citing weak demand.
- Why it matters: The move signals a pivot toward integrated crypto services and reflects the broader collapse of the NFT boom.
Gemini, the crypto exchange founded by Tyler and Cameron Winklevoss, announced that its NFT marketplace Nifty Gateway will close permanently on February 26th. The platform has been in withdrawal-only mode since the announcement, allowing users to liquidate their holdings. Gemini said the closure will let the company focus on building a “one-stop super app” for its customers.
Gemini’s Decision
Gemini’s leadership framed the shutdown as a strategic refocus. The exchange had acquired Nifty Gateway in 2019, during a period when NFTs were a hot topic. The platform had grown alongside competitors that launched similar marketplaces: Coinbase and Kraken both entered the space in 2021-22 but shut theirs down in 2024.
> “This decision will allow Gemini to sharpen its focus and execute on the vision of building a one-stop super app for customers,” the announcement said.
Gemini’s statement highlighted the company’s intent to integrate NFT functionality into its broader product suite rather than maintain a standalone marketplace.
Market Trends
The NFT market peaked in 2021, with weekly sales exceeding $1 billion. By 2026, sales had fallen to less than $60 million in the first weeks of the year, according to data from The Block. The CryptoSlam 500 NFT Index, which tracks the largest projects across blockchains, has dropped 98.98% since its launch four years ago.
During the hype, high-profile NFTs such as CryptoPunks and Bored Apes Yacht Club fetched tens of millions of dollars. Celebrity endorsements from Tom Brady to Paris Hilton amplified the trend, but the market eventually turned frothy. OpenSea, the largest NFT marketplace, pivoted to a multi-chain crypto trading aggregator after the bubble burst.
Industry Reactions
Both Coinbase and Kraken closed their NFT marketplaces in 2024 amid a lack of demand. Coinbase’s exit followed a public denial of an upcoming shutdown the previous year. Kraken’s closure was announced with a statement that the platform would not pursue further NFT services.
Legal and regulatory scrutiny intensified during the downturn. An OpenSea employee was charged with insider trading and sentenced to three months in prison. Multiple lawsuits involving celebrities and memecoin rug pulls also surfaced, highlighting the risks associated with digital collectibles.
Remaining Use Cases
Despite the decline, a niche of hobbyists continues to trade and collect older NFTs. Projects like Rare Pepes, launched in 2016, still attract collectors who enjoy the novelty of digital art. The broader market now resembles a hobbyist community rather than a mainstream investment avenue.
Some platforms are attempting to restore credibility by embedding NFT images directly onto the Bitcoin blockchain using the Ordinals Inscriptions protocol. While this effort has sparked debate over network spam, it has yet to achieve the scale of the 2021-22 boom.
Key Takeaways
- Gemini’s closure of Nifty Gateway reflects a strategic shift toward integrated crypto services.
- The NFT market has contracted sharply, with weekly sales falling from $1 billion to $60 million.
- Competitors like Coinbase and Kraken have also exited the space, citing weak demand.
- Legal challenges and insider trading cases have added scrutiny to the sector.
- A small community of collectors remains active, but the mainstream hype has faded.
Gemini’s decision underscores the volatility of emerging crypto markets and the importance of adaptable business models in the face of rapid technological and regulatory change.
