LG Electronics, a leading global consumer electronics company, has announced that it will shut down its NFT marketplace, LG Art Lab, on June 17, 2025. The platform, launched in September 2022 at the height of the NFT boom, allowed users to buy, sell, and display NFTs directly on their smart TVs. However, with the NFT market experiencing a prolonged downturn—where major collections have seen their value drop by over 70%—LG has decided to end this venture. This decision, reported by Decrypt on March 20, 2025, reflects broader trends in the digital asset market and raises questions about the future of NFTs in consumer technology. Here’s what the shutdown means for NFT enthusiasts and the industry.
What Was LG Art Lab
LG Art Lab was an innovative platform integrated into LG’s smart TVs running webOS 5.0 or later. It turned living rooms into digital art galleries, enabling users to buy and display digital artworks. Initially built on the Hedera network, it later expanded to Ethereum, allowing users to purchase and showcase high-quality NFTs using the Wallypto crypto wallet app. The platform also partnered with well-known artists like sculptor Barry X Ball to release exclusive NFT drops, mixing technology with creativity. LG launched the platform with the promise of a seamless way to engage with the booming NFT market, which was experiencing significant hype at the time.
However, the NFT market has since cooled off. Prices for major collections have dropped significantly. For example, CryptoPunks’ floor price fell by 69.3%, from 125 ETH to 38.4 ETH, and Bored Ape Yacht Club dropped by 91.7%, from 153.7 ETH to 12.67 ETH, according to data from CoinGecko. LG’s decision to shut down Art Lab aligns with this market contraction, as the company now shifts its focus to explore new opportunities in the evolving digital space.
Why Is LG Shutting Down Art Lab?
LG explained that the evolving nature of the NFT space led to its decision to close the platform. The company stated on its website: “As the NFT space continues to evolve, we believe it is the right time to shift our focus.” This follows a wider trend of companies moving away from NFT ventures due to decreasing interest and value. The global NFT market, once projected to reach $223 billion by 2031, now stands at just $3.67 billion, according to CoinGecko. Other companies, like Kraken, which shut down its NFT marketplace in February 2025, and Nike’s RTFKT, which halted operations in January, have also pivoted away from NFTs due to similar market challenges.
For LG, the shutdown marks the end of a three-year experiment that began during the NFT boom. Despite early success, the platform struggled to maintain momentum as the “crypto winter” dampened enthusiasm, prompting LG to reconsider its Web3 strategy.
What Happens to Existing NFT Holders?
LG has outlined a transition plan for users of the Art Lab platform. As of March 10, 2025, purchases on the platform will stop. Any assets listed for resale will automatically be transferred to users’ personal wallets by April 30, 2025. Users can also manually withdraw their NFTs before the June 17 shutdown. Customer support will remain available until July 18, 2025, to ensure a smooth transition. Ethereum-based NFTs from Art Lab can still be traded on other platforms like OpenSea, giving collectors a way to continue their activity.
Implications for the NFT Market in 2025
LG’s decision to exit the NFT space highlights the difficulties the industry is facing. While NFTs related to gaming and virtual real estate still have some demand, the broader market has not recovered from its peak in 2022. The closure of LG Art Lab suggests that tech giants may move away from consumer-facing NFT projects, though Samsung continues to operate its own NFT TV marketplace. This doesn’t mean NFTs are dead, but rather that niche sectors and innovative use cases may continue to drive future growth in the space.
Conclusion: A Turning Point for NFTs
LG’s plan to shut down Art Lab by June 2025 reflects the fading hype surrounding NFTs and represents a strategic shift for the company. As reported by Decrypt, this move highlights the market’s volatility, with top NFT collections losing over 70% of their value. For NFT enthusiasts, it serves as a reminder to adapt to a constantly changing landscape. Will NFTs make a comeback, or has this chapter closed? Stay informed as the digital asset space continues to evolve.
