On April 16, NFT marketplace Foundation announced it is in the process of shutting down following the collapse of a “rescue” deal with digital art platform Blackdove. This marks another high-profile failure as the NFT market continues its struggle to recover in the post-boom era.
The decision comes as an increasing number of NFT platforms face pressure from prolonged declining liquidity, shrinking revenues, and competition that is increasingly concentrated among a few major players. Foundation, once positioned as a curated marketplace for artists, has been unable to find a suitable buyer to continue operations.
NFT Platforms Are Struggling in a Shrinking Market
Foundation’s closure clearly reflects the structural issues of the current NFT market, where transaction volumes have plummeted compared to the 2021-2022 peak.
During the boom period, total monthly NFT trading volume across the market once reached billions of dollars. Currently, this figure has dropped by more than 90% according to data from Token Terminal, reflecting a significant weakening in demand.
NFT trading volume by project. Source: Token Terminal
As liquidity decreases, users and capital tend to concentrate on a few large platforms, making it difficult for smaller or niche marketplaces to sustain operations. For curated platforms like Foundation — which rely heavily on primary sales and the artist community — the decline in speculative demand has created even greater pressure.
In this context, many platforms have been forced to pivot their models, seek acquisition partners, or accept closure.
Falling Volume and Revenue Are Breaking the Model
The prolonged slump in trading activity has directly undermined Foundation’s business model, which relied almost entirely on transaction fees.
Data from Token Terminal shows that the platform’s revenue has plummeted from approximately $20.5 million in 2021 to just about $90,000 in 2025, and around $4,500 as of Q1 2026—representing a decline of over 99% from its peak.
Foundation trading volume by month. Source: Token Terminal
Trading volume has also plummeted following the same trend. From levels of $15–20 million per month during the peak period, volume now fluctuates between only $30,000 and $100,000 per month, reflecting a clear weakening of both demand and liquidity.
Despite once achieving hundreds of millions of dollars in trading volume during its growth phase, the prolonged decline has made the fee-based model difficult to maintain under current market conditions.
Foundation’s Failed Rescue Deal With Blackdove
Amidst these difficulties, Foundation sought to maintain operations through an agreement to sell the platform to Blackdove, a company specializing in digital art distribution and experiences. According to Kayvon, co-founder of Foundation, the deal was signed earlier this year, with the expectation that the buyer would continue to operate the platform.
However, after an initial operational handover and the completion of further due diligence, Blackdove concluded that building its own marketplace was more aligned with the company’s strategic direction.
— kayvon (@saturnial) April 15, 2026
On April 16, the Foundation also confirmed that the buyer is no longer able to continue operating the platform. They stated that under current market conditions, they do not see any other suitable buyers to pursue. Parts of Foundation’s infrastructure have already been decommissioned, making a transfer increasingly unfeasible.
The collapse of the deal effectively closes the platform’s final option to continue operating under a new owner.
What Happens to Users
Foundation stated that user assets remain secure because the platform operates on a non-custodial model, with NFTs stored directly on the blockchain and unaffected by the shutdown.
In a recent post, the team said they would temporarily bring the platform back online to allow artists to delist their active NFT listings. According to the Foundation, this infrastructure restart process takes only about 15–20 minutes.
For NFTs currently held within the marketplace’s contracts, Foundation stated they are working to provide a solution that allows users to delist and withdraw assets before the final shutdown.
Additionally, metadata and media data for NFTs issued by Foundation will be maintained for at least one year. Users are also advised to proactively back up data through third-party services to ensure long-term accessibility.
What It Signals for the NFT Market
Foundation’s closure highlights the growing trend of centralization in the NFT market, with most trading activity concentrated on a few dominant platforms like OpenSea and Blur.
As liquidity thins and the user base consolidates, smaller marketplaces face significant hurdles in attracting both artists and collectors — making their business models unsustainable. Even platforms with a former standing, like Foundation, struggle to survive without sufficient volume.
The failure of the Blackdove deal also demonstrates that efforts to “save” these platforms are not always feasible in the current market climate.
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