SVB’s collapse engulfs NFT trading volume

One day after the collapse of Silicon Valley Bank, NFT trading activity also began to decline significantly, even reaching a bottom compared to November 2021.

SVB’s collapse engulfs NFT trading volume

As noted from DappRadara day after the Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank, there are only about 12,000 active NFT traders left.

This is a statistic not seen since November 2021, when Bitcoin peaked at $69,000. Single NFT transactions also only totaled 33,112 on March 12, which is the bottom of 2023.

NFT trading volume and sales in the first half of March 2023. Source: DappRadar

Compared to the beginning of March, NFT trading volume has decreased by 51%, sales have also plunged by nearly 16%. Amidst the volatility of stablecoins, investors tend to trade NFTs less often.

However, not all collections on the market are equally affected. Yuga Labs’ NFT projects, taking Bored Ape Yacht Club and CryptoPunks as examples, only slightly lowered their floor prices on March 11, but quickly recovered and kept their momentum up above the 7-day frame.

Floor price movements of top NFT collections on the morning of March 17, 2023. Source: NFT Price Floor

The @Seedphrase account on Twitter likens the price of CryptoPunks to being even more stable than stablecoins. Other blue-chip sets like Azuki and Art Blocks are mostly unaffected.

Meanwhile, Moonbirds and PROOF suffered heavy damage because of their exposure to SVB.

A major owner then sold 500 NFT Moonbirds, accepting a loss of about $1.1 million. Last month, Moonbirds creator Kevin Rose also confirm the cancellation of the event “PROOF of Conference” because it does not receive much attention from the community.

Combining the above information, Gherghelas – a researcher of DappRadar commented:

“People, users and consumers are becoming more picky and they want the real perks, benefits and convenience behind that NFT collection.”

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