In yet another blow to the faltering digital art industry, LG Electronics has announced the shutdown of its NFT marketplace, Art Lab. On June 17, 2025, the platform that enabled customers to purchase, sell, and view NFTs on LG smart TVs will formally shut down. According to the announcement, which was made on the soon-to-be-defunct website, the corporation intends to concentrate on other commercial prospects.
The ruling coincides with a general waning of interest in non-fungible tokens (NFTs), which gained enormous traction in 2022 but have since seen difficulties like market saturation, falling values, and waning customer demand. Many NFT marketplaces have shut down in recent years as a result of these problems.
NFT Market Struggles Lead to Industry-Wide Closures
The most recent NFT platform to cease operations is LG Art Lab. Quidd, an NFT marketplace owned by Animoca Brands, closed its doors in January 2025. MakersPlace, a digital creative portal, also closed its doors. In a similar vein, GameStop shut down its NFT marketplace in early 2024 as a result of declining trading volumes and corporate layoffs. The business opened its NFT marketplace in July 2022, at the height of NFT trading.
The decline in the NFT sector has been particularly evident since the peak trading period in November 2022. Although some industries, such as gaming and virtual real estate, continue to explore NFT applications, the overall market has seen a sharp contraction.
LG Art Lab’s Shutdown Timeline and User Transition
According to LG Art Lab’s official notice, users will no longer be able to make purchases starting March 10, 2025. The company has assured customers that their NFTs will be automatically transferred to their respective wallets by April 30, allowing them to resell their digital assets on alternative platforms like OpenSea. Users also have the option to manually transfer their artworks to their own wallets before the shutdown.
Despite providing no direct reason for the closure, LG Electronics cited a strategic shift in focus as its primary motivation. “As the NFT space continues to evolve, we believe it is the right time to shift our focus and explore new opportunities,” the company stated. While Art Lab’s operations will cease on June 17, customer support will remain available until July 18.
The Rise and Fall of LG Art Lab
LG Art Lab, which was introduced in September 2022, was marketed as a cutting-edge platform for incorporating digital art into customers’ living spaces. The marketplace, which started out on the Hedera blockchain before moving to Ethereum, offered a variety of digital artworks at prices ranging from $59.82 to almost $4,000. The Wallypto cryptocurrency wallet from LG Electronics made transactions easier and made it easier to obtain and view NFTs on smart TVs.
Future of NFTs: A Sector in Decline or Transformation?
While the NFT market has struggled, some niches within the space—such as gaming and virtual real estate—continue to explore new applications. However, major investment losses, such as the Australian Open’s Artball program, which saw token values drop by up to 90%, highlight the volatility and uncertainty surrounding NFTs.
LG’s decision to close Art Lab reflects a broader industry trend, where companies are reconsidering their investments in digital collectibles. As the sector continues to evolve, it remains to be seen whether NFTs will experience a resurgence or continue their downward trajectory.
