Kraken Consolidates NFT Operations for Pursuit of Novel Ventures
In a recent announcement, Kraken, a prominent crypto exchange company, has revealed that it will be closing its Non-Fungible Token (NFT) marketplace by February 27, 2025. This decision comes amidst a broader trend where major exchanges are discontinuing NFT marketplace operations, often due to significant declines in trading volumes and a strategic refocus on core asset trading offerings.
Over the past two weeks, the NFT transaction volume on Kraken saw a spike following Donald Trump's election win, reaching $83 million and $63 million, excluding wash trading. However, the industry as a whole has been experiencing a decline for the last five months, following a rally in Q2 2024. In the week ending November 11, 2023, the NFT transaction volume on Kraken was over $83 million, and in the week ending November 18, it fell to $63 million, again excluding wash trading.
The Kraken NFT marketplace, operational for about two years since its beta launch in November 2022, peaked at approximately $243 million in March. Since then, the weekly non-wash trading NFT transaction volume has fallen to just over $26 million in the week ending October 28, according to a Dune dashboard prepared by Holdobby, a tool used to track NFT transaction data.
Kraken representatives have informed clients about the changes and will support them as they move their NFTs to their Kraken Wallet or a self-custodial wallet of choice. From November 27, users will no longer be able to list, bid, or sell items on Kraken's NFT marketplace, but they will still be able to withdraw their assets.
With the shutdown of the NFT marketplace, Kraken is looking to the future. The company is focusing on strengthening its regulated multi-asset trading platform. Key areas include the integration of traditional financial services such as futures and equities trading (notably through the $1.5 billion NinjaTrader deal), expanding U.S.-regulated crypto futures access via CME, reintroducing on-chain staking options, and enhancing its margin trading capabilities with increased leverage up to 10x on BTC, ETH, SOL, XRP, and DOGE pairs.
Kraken is also reportedly planning a potential initial public offering (IPO) in 2026, contingent on favorable market conditions. This move signifies Kraken's commitment to continuing its growth and innovation in the crypto space.
Sources:
- The Block
- CoinDesk
- Cointelegraph
- Decrypt
- Despite the forthcoming closure of Kraken's NFT marketplace, the company is focusing on expanding its regulated multi-asset trading platform, integrating traditional financial services and boosting margin trading capabilities.
- The best news for finance enthusiasts in the technology sector is Kraken's potential initial public offering (IPO) in 2026, subject to favorable market conditions, indicating the company's ongoing commitment to crypto innovation.
- Resourceful news outlets like The Block, CoinDesk, Cointelegraph, and Decrypt have reported on Kraken's strategic shift away from NFT trading, preferring to allocate resources toward traditional financial services and enhancing its core trading offerings.
