Solana NFT Apocalypse: Formfunction to Shut Down Marketplace
The platform has not disclosed the reason for the closure, but Solana’s NFTs have not performed at their best lately.
On March 15th, form-function announced that it would “shut down” on March 29th, stating that it “cannot continue to operate.” The company said it made the decision after “many discussions and careful consideration.”
We have some sad news to share today – Form function will be retired on Wednesday, March 29th.
This was a very difficult decision. However, after much discussion and careful consideration. We have concluded that the Forms feature cannot continue to operate.
We’re proud of what we’ve built on our mission to help creators make a living. We are grateful for the support, and love we’ve found in this community.
To all the creators and collectors who have used Fofu over the past year-you really made our platform shine.
The popular NFT marketplace Formfunction has announced its decision to shutter amid a slump in the Solana NFT market. The platform’s team informed its users through a Medium blog post, stating they were “unable to sustain the business due to the decline in demand for Solana NFTs.“
Formfunction, which focused exclusively on Solana-based NFTs, was launched earlier this year with the claim of providing collectors and artists with a “simple, seamless platform to transact with each other.”
However, the platform’s fortunes dwindled as the Solana network struggled with congestion and sky-high gas fees, leading to a decrease in the number of transactions and users, particularly in the NFT space.
In their blog post, the Formfunction team acknowledged their difficulties and the challenging market environment that led to their decision to shut down the platform. “It’s been a tough ride for us, the NFT market on Solana has been over-crowded, and numerous projects are struggling to retain value,” they wrote.
The team also credited the community for supporting the platform and the artists, thanking them for their contributions and for helping make Formfunction a memorable experience.
They further clarified that while the platform stopped operations, users could still access their wallets and withdraw all funds before November 30th.
This news comes when the entire NFT market has been experiencing a slowdown, with ETH-based NFTs also feeling the heat. Solana, in particular, has seen a significant decrease in the number of active addresses and daily transactions, which has affected the prices of its NFTs.
Despite these challenges, Solana remains optimistic about the future of NFTs on the platform and has been exploring new approaches to enhance scalability and reduce gas fees.
Formfunction’s closure highlights the struggles of Solana’s NFT market and the challenging environment of the wider industry. While the future may seem uncertain, the community remains hopeful that trends will change and the market will recover.
Solana NFT daily buyers have also slowed over the past 12 months. According to CryptoSlam data, his unique daily buyers hover around 7,000, almost half the average number in early 2022.