LG Electronics will shut down its NFT platform, LG Art Lab, on June 17, marking a retreat from its digital art ambitions amid a steep downturn in the NFT market. The company cited a need to “shift focus and explore new opportunities” in a notice published earlier this month.
Launched in September 2022 during the height of NFT speculation, LG Art Lab allowed users to browse, purchase, and display digital art through LG smart TVs. Transactions were completed via LG’s Wallypto crypto wallet, with prices ranging from under $60 to over $3,800. A single-edition piece by artist Amadon once sold for more than the company’s high-end 77-inch OLED TV.
The closure arrives as NFTs suffer a dramatic decline in market value. According to CoinGecko, the global NFT market cap has dropped to $3.5 billion, far from projections that it could reach $223 billion by 2031.
Prominent NFT collections have lost much of their value: Cryptopunks’ floor price has fallen 69.3% from 125 ETH in August 2021 to 38.4 ETH. Bored Ape Yacht Club is down 91.7% from its 2022 peak of 153.7 ETH to 12.67 ETH. Doodles, once priced at 23.95 ETH, now trade for just 3.05 ETH—a drop of 87.3%.
Even collections that have recently gained traction, like Pudgy Penguins, remain deeply underwater. The collection’s floor price has fallen 73% since December 2024, declining from 36.33 ETH to 9.79 ETH.
LG’s decision follows other major withdrawals from the sector. Crypto exchange Kraken shuttered its NFT marketplace on February 27, citing a redirection of resources. RTFKT, a Nike-owned digital fashion and NFT brand, also ceased operations in January after significant losses across its collections.
At launch, LG Art Lab operated on the Hedera network, a blockchain alternative using hashgraph technology. In 2024, it expanded to Ethereum in an apparent bid to broaden its user base. However, as of March 10, purchases have been disabled on the platform. According to LG, any assets listed for resale will be automatically transferred to users’ personal wallets by April 30. Manual withdrawals are also available. Customer support will remain active until July 18.
The company did not provide specific metrics on Art Lab’s user base or transaction volume. It emphasized that while the platform is closing, its “passion for digital art and innovation remains strong.”
LG’s previous forays into emerging tech included a 2023 partnership with metaverse companies Oorbit and Pixelynx, integrating AI-driven multiplayer games and virtual concerts into its smart TVs. The company has not clarified whether these digital initiatives will continue following Art Lab’s shutdown.
