LG Shuts Down NFT Platform Art Lab After Three Years of Operation

Global tech giant LG Electronics has announced the closure of its NFT platform, LG Art Lab, after three years of operation.

Launched in September 2022, the platform allowed users to buy, sell, and display NFTs directly on LG smart TVs, aiming to integrate digital art into the home entertainment experience.

“After careful consideration, we have made the difficult decision to close the platform. We believe it is the right time to shift our focus and explore new opportunities,” the company said in a statement.

LG Art Lab Positioned as Gateway to Digital Collectibles Through Artist Collaborations

LG Art Lab collaborated with several digital artists, including renowned sculptor Barry X Ball, and positioned itself as a gateway for users to engage with the emerging world of digital collectibles.

However, the platform will now begin winding down operations, with NFTs automatically returned to user wallets by the end of April. The official shutdown date is set for June 17.

2023 is going to be an exciting year for LG Art Lab.
We’ve been working on exciting activations that you won’t want to miss.

Our goal is to provide Hedera with an exceptionally rich NFT ecosystem, bringing world renowned artists to your home on all LG smart devices! pic.twitter.com/nTsskAlxx3

— LG Art Lab (@LGArtLab) January 2, 2023

The closure comes amid a broader industry trend, as NFT platforms struggle to maintain relevance and user engagement in a significantly cooled market.

In recent months, Kraken shut down its NFT marketplace, and Nike’s NFT venture RTFKT announced its closure last December.

Once a booming sector, NFTs have seen a sharp decline in activity.

Weekly trading volumes have dropped below $100 million, a dramatic fall from the $3.24 billion peak in August 2021.

The post-COVID shift away from digital-first experiences and speculative trading has left many platforms reevaluating their long-term viability in the space.

NFT Trading Volumes Plunge Over 60% in February

As reported, NFT trading volumes plummeted by more than 60% in February, continuing a downward trend that began in early 2024.

According to DappRadar analyst Sara Gherghelas, NFT trading volumes reached $1.36 billion in December but dropped 26% in January before plunging another 50% in February.

“While NFTs had been showing signs of a comeback in recent months, their momentum has slowed since the start of the year,” she said.

The NFT market closed 2024 on a positive note with annual sales surpassing $8.83 billion, a 1.1% increase from 2023’s $8.7 billion, according to CryptoSlam data.

Ethereum and Bitcoin led the market, each generating $3.1 billion in sales, followed by Solana with $1.4 billion.

In total NFT sales, Ethereum remains dominant with $44.9 billion in all-time sales, trailed by Solana at $6.1 billion and Bitcoin at $4.9 billion.

Despite the slight recovery, 2024’s sales volumes were significantly lower than the market’s peak years.

NFT sales hit $15.7 billion in 2021 and soared to $23.7 billion in 2022, making 2024’s total a 43.9% and 62.8% decline from those peak periods.

The market’s resurgence began after a seven-month slump, with sales reaching their lowest point since 2021 in September.

However, a rebound emerged in the final quarter. October sales rose by 18% to $353 million, followed by a six-month high of $562 million in November.

December concluded the year strongly, achieving $877 million in sales—the fifth-highest monthly total of 2024.