Mattel has announced it will halt new releases of its Hot Wheels Virtual Garage NFTs, marking a major retreat from the once-hyped digital collectibles space. The company confirmed there will be no additional series or feature drops for the foreseeable future, and it is currently evaluating the long-term future of its digital collectibles program.

Despite the pause in new content, current users can still access their Hot Wheels NFT collections, participate in the Mattel Digital Collectibles Marketplace, and engage with the community via Discord through at least 2025. Existing redemptions will be honored, and buying, selling, and trading of NFTs on Mattel’s platform remains active. However, NFT transfers to external wallets or marketplaces are not supported, though Mattel said it is exploring options to enable this in the future.

The decision comes as the broader NFT market continues to collapse. According to market data, NFT sales plummeted 63% in Q1 2025 compared to the same period last year, falling from $4.1 billion to just $1.5 billion.

Mattel’s move mirrors Nike’s recent shutdown of its RTFKT NFT marketplace, which triggered a lawsuit from holders alleging financial damages. Meanwhile, FIFA is bucking the trend by expanding its NFT strategy, announcing a new Ethereum-compatible blockchain to support its digital collectibles launched during the 2023 Club World Cup.

Mattel’s Hot Wheels NFT series began in November 2021 and reached its tenth and final series in December 2024. While the company has not ruled out a return to NFTs, the future of the Hot Wheels Virtual Garage now remains uncertain amid the digital asset downturn.