Generation Z has made reselling clothes and thrifting cool again.

On Wednesday, online marketplace Etsy (ETSY) announced it would buy clothing resale app Depop, a Generation-Z focused fashion resale company, for $1.63 billion. The acquisition is expected to bolster Etsy's market share for younger consumers and vintage clothing enthusiasts.

Etsy's move to buy Depop comes after startups ThredUp and Poshmark went public in 2021. Vinted, Europe’s largest secondhand fashion marketplace, had recently raised roughly $300 million (250 million euros) for a company valued at roughly $3.5 billion.

While Gen Zers have flocked to Depop, Etsy started in 2005 and generates roughly $600 million in revenue.

Founded in 2011, London-based Depop has become the popular place to post and style outfits made completely of "thrift finds." Depop has over 26 million users across 147 countries and 90% of its users are under the age of 26.

"This (Gen-Z) is an enormous demographic and it's the trendsetter demographic,” Etsy CEO Josh Silverman told analysts Wednesday.

New York-based Etsy has mostly attracted more of an older crowd, with people selling a “craft” or handmade products. The company's official website says it is part of a "one-of-a-kind community ... where people come together to make, sell, buy, and collect unique items."

Experts estimate that the second-hand clothing market in the U.S. will be worth $64 billion by 2024.

As of Wednesday at 2:14 p.m. ET, shares of Etsy were trading at $174.70, up $11.24, or 6.88%.