NFT trading volumes plummeted after last week’s Silicon Valley Bank (SVB) collapse as traders exited the market fearing the fallout from a major U.S. bank.
Before SVB collapsed on March 10, NFT volume fluctuated between $68 million and $74 million before falling to $36 million on March 12, according to a March 16 report from data aggregation platform DappRadar.
Between March 9 and March 11, daily NFT sales fell 27.9%.
NFT transaction volume and sales across all networks from March 1st to 13th. Source: DappRadar
According to DappRadar, there were only 11,440 “active” NFT traders on March 11, the lowest number recorded since November 2021.
USDC closed in losses as low as $0.88, causing traders to flee the NFT market, the report said.
As a result, “NFT traders became less active,” Dappradar explained.
Despite the trading disruption, the market value of blue-chip NFTs has not been significantly affected, with collectibles such as Bored Apes Yacht Club (BAYC) and CryptoPunks seeing only modest drops in reserve prices.
Since the collapse of SVB, the base price of BAYC NFT has dropped by 2%, from 68.4 ETH to 67 ETH. Source: OpenSea
“The recovery has been quick, showing the resilience of these top NFTs. NFT Blue-Chip remains a stable investment in a chaotic market,” DappRadar said.
According to co-founder Greg Solano, the steady base price of BAYC and CryptoPunks can be attributed to Yuga Labs, the team behind the collection, confirming that it has “very limited exposure” to SVB.
However, after the news broke that PROOF (the team behind the NFT) got a lot of exposure from SVB, the base price of the Moonbirds series dropped a massive 35.3% from 6.18 ETH to 4 ETH on OpenSea.
Moonbird’s base price since SVB collapsed. Source: OpenSea
DappRadar said this was sparked in part by Ethereum addresses selling nearly 500 Moonbirds NFTs for between 9% and 33%.
The sell-off in the NFT Blur market resulted in a total loss of 700 Ether.
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As reported by Cointelegraph