NFT market activity shrank dramatically in 2025, with monthly sales falling to $320 million in November from billions during the 2021 boom. This trend underscores a sector-wide correction as hype fades. Nifty Gateway's shutdown exemplifies how even established platforms struggle in this environment.
The Evolution of Nifty Gateway
Gemini acquired Nifty Gateway in 2019 to bolster its CeFi offerings with trading. The platform quickly became a hub for digital art, enabling over $300 million in peak sales.
At its height, Nifty Gateway hosted exclusive drops from artists and celebrities, driving NFT adoption. However, declining interest has eroded its viability.
According to CoinDesk, the site facilitated massive transactions during the 2021 surge but now faces closure as volumes collapse.
Key Milestones in Operations
Launched in 2018, Nifty Gateway pioneered curated NFT collections in CeFi ecosystems. It integrated fiat payments, appealing to mainstream users.
By 2022, regulatory scrutiny intensified, impacting NFT classifications as potential securities. This added operational complexities for platforms like Nifty.
Reasons Behind the Wind Down
Gemini states the closure sharpens focus on its super app, diverting resources from underperforming NFT services. The platform enters withdrawal-only mode immediately.
Prolonged market downturns have slashed NFT trading by over 50% in 2025, per Statista reports. High-value collectors sustain some activity, but mass adoption stalls.
Yat Siu of Animoca Brands notes that wealthy crypto holders still drive NFT markets, with $300 million in recent 30-day sales. Yet, this fails to offset broader declines.
Impact of regulation on CeFi and NFTs
actions, like the Impact Theory case, treat certain NFTs as securities, heightening compliance costs for CeFi platforms. This regulatory shift discourages innovation in digital assets.
Uncertainty around blockchain rules hampers NFT growth, as operators navigate potential lawsuits. Analysts predict stricter CeFi oversight in 2026, accelerating consolidations.
According to a World Economic Forum report, global crypto regulations aim to protect consumers but may stifle decentralized features in NFTs.
Market Trends Influencing the Decision
projections for 2026 vary, with some forecasts showing growth to $86 billion amid utility-focused tokens. However, 2025 saw an 11% revenue drop to $608 million.
Gaming and real-world asset NFTs gain traction, shifting from art speculation. CeFi entities like Gemini pivot to these trends for sustainability.
The Block reports that NFT trading across chains contracted in 2025, reflecting investor caution in volatile markets.
Community and Expert Reactions
Users express concern over the short withdrawal window, emphasizing self-custody lessons. This event highlights risks in centralized NFT storage.
Experts warn that similar shutdowns could follow if regulation tightens further on CeFi platforms. Diversification becomes key for holders.
What Users Should Do Next
Account holders must transfer assets by February 23, 2026, to avoid losses. Gemini provides instructions for seamless migrations to other wallets.
Prioritize platforms with strong regulatory compliance to mitigate future disruptions in markets.
Future Outlook for NFTs and CeFi
Despite downturns, NFTs evolve toward practical uses like memberships and events. CeFi integration with DeFi could revive interest by 2026.
Regulatory clarity might boost confidence, per Blockchain Council insights, fostering mainstream adoption.
This Nifty Gateway closure signals maturation in the NFT space, urging stakeholders to adapt. It underscores the need for robust strategies in CeFi amid market and regulatory fluxes.
