Hyperspace Shuts Down NFT Marketplace on Solana
Hyperspace, a notable multi-chain non-fungible token marketplace, has announced the closure of its operations on the Solana (SOL) network. This decision was publicized on September 3, indicating the complete sunset will occur by September 17, 2024. Users are advised to delist their NFTs before this deadline as the platform plans to remove website support and application programming interface (API) for Solana NFTs starting September 17.
"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," the Hyperspace team mentioned in their announcement, expressing optimism for future endeavors.
Rise and Challenges of Hyperspace
Launched in 2021 amidst the NFT boom following the COVID-19 pandemic, Hyperspace quickly gained recognition and support from major crypto venture capital firms like Dragonfly, Pantera, and Coinbase Ventures. However, despite its initial success, the platform faces challenges that have led to the decision to shut down its operations on Solana as well as Sui (SUI).
Market Conditions Impacting Hyperspace
The decision to exit the Solana marketplace highlights the ongoing struggles within the NFT market. Although collections like CryptoPunks, Bored Ape Yacht Club, and Art Blocks continue to dominate in terms of sales and volume, the broader market has not seen significant recovery since the 2022 crypto slump. An alarming statistic from a recent report reveals that nearly 96% of NFT projects are no longer active, with 43% of holders experiencing losses.
Moreover, declines in trading volume have affected major NFT marketplaces such as OpenSea, Magic Eden, and Blur. Besides market conditions, regulatory issues also pose significant challenges. Recently, the U.S. Securities and Exchange Commission (SEC) issued a Wells Notice to OpenSea over allegations of offering unregistered securities, adding to the industry's hurdles.
