Trading volumes for non-fungible tokens (NFTs) took a big hit after the Silicon Valley Bank (SVB) collapse last week as they fled the market, fearing the repercussions of major US bank failures.
According to information on March 16 report According to data aggregation platform DappRadar, NFT trading volume hovered between $68 million and $74 million leading up to the SVB collapse on March 10, but hit $36 million on March 12. I fell into
This drop resulted in a 27.9% drop in daily NFT sales from March 9th to March 11th.
11,440 NFT traders were also “active” on March 11, the lowest number recorded since November 2021, according to DappRadar.
The depeg of USD Coin (USDC), which fell to $0.88, has turned traders’ attention away from the NFT market, the report explains.
As a result, “NFT traders have become less active,” explains Dappradar.
Despite the slowdown in trading, the floor prices of collections such as Bored Apes Yacht Club (BAYC) and CryptoPunks fell only slightly, leaving the market value of ‘good’ NFTs virtually unaffected.
“Recovery was rapid, demonstrating the resilience of these top-notch NFTs,” said DappRadar. “Blue-chip NFTs remain a stable investment in a turbulent market.”
BAYC and CryptoPunks could attribute the stable lowest price to Yuga Labs, the company behind the collection, confirming that it had “very limited exposure” to SVB. according to To co-founder Greg Solano.
Related: 74% of survey participants say they buy NFTs for status
However, the lowest price for the Moonbirds collection has dropped a significant 35.3% from 6.18 ETH to 4 ETH on OpenSea following news that PROOF (the team behind NFT) had a hefty sum. exposure to SVB.
This was partially caused by one Ethereum address selling off about 500 Moonbirds NFTs, suffering losses ranging from 9% to 33%, DappRadar explained.
A total of 700 Ether (ETH) was lost due to the sale on the NFT marketplace Blur.