Foundation, one of the more prominent Ethereum-based non-fungible token (NFT) markets that emerged during the 2021 boom, is shutting down after the sale that was intended to keep it afloat fell apart.
Kayvon Tehranian, founder and CEO of the Foundation, traveled to X on Wednesday announce market closure following the failed takeover of digital art distribution platform Blackdove.
While Tehranian did not mention Blackdove directly, he stated that the original purpose of the sale was to ensure the platform would continue to operate under up-to-date ownership. “This is no longer possible,” he said, adding that the Foundation is unable to bring the market back online.
The foundation later said the site would return briefly so users could delete NFTs, in a message signed by the Blackdove team.
The market shutdown highlights the continued decline in NFT trading activity since the 2021 boom, as lower liquidity has left fewer independent markets able to survive.
The foundation has grown during the boom in 2021
The foundation launched in early 2021, capping a massive year for tokenized digital art, with some NFTs selling for $69 million each.
According to for Blackdove, the platform has delivered over $230 million in core sales to artists worldwide, hosting NFT sales for artists like Jen Stark, James Jean, and Reuben Wu.
The foundation also became a venue for the presentation of digital art by American whistleblower Edward Snowden, whose NFT song “Stay Free” sold for approximately 2,200 Ether (ETH) in 2021, which was worth approximately $5 million at the time.
As broader NFT activity cooled thereafter peak in 2022, platforms like Foundation faced decreasing liquidity and fewer sustainable transaction flows. Blackdove initially announced the acquisition of Foundation in early 2025 along with the platform announcing transfer of ownership a year later.
The consolidation of the NFT market is deepening
The Foundation’s closure adds to a growing list of NFT platforms that have recently shut down or stopped trading digital art, with the sector’s market capitalization falling to pre-hype levels seen in 2021 since February 2026.
Mint Blockchain, an NFT-connected infrastructure network built on Ethereum, as well announced on Friday to cease operations and instruct users to withdraw assets.
This year alone, at least two other NFT platforms have announced they are going out of business, including Gemini exchange-backed Nifty Gateway and social NFT platform Rodeo.
MakersPlace closed last year due to withering NFT activity, while X2Y2 closed and moved away from NFTs. Cryptocurrency exchange Bybit also shut down its NFT platform due to a decline in trading volume.
Related: Yuga Labs settles lawsuit against artists accused of copying its NFTs
According to DefiLlama, OpenSea remains the dominant NFT market despite the broader economic downturn, accounting for over 73% of all activity in the sector at press time, with competition from rivals such as Blur.
Despite the pointed decline in NFTs, some industry figures, including Animoca Brands CEO Yat Siu, predicted that the sector could recover and reach up-to-date record highs.
