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.
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.
Last weekend, the markets were shaken by the possibility of a systemic crisis in the banking industry.
USDC’s instability sent shockwaves across the industry; DeFi’s transaction volume crossed $58B across all protocols.
Read the preliminary reporthttps://t.co/10lZhiXurJ pic.twitter.com/JhaiPok540
— DappRadar (@DappRadar) March 16, 2023
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.
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.
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.
Cryptopunks are the real Stablecoin in this market pic.twitter.com/xlgG74Eubc
— 0xPajke (@0xPajke) March 11, 2023
Meanwhile, Moonbirds and PROOF suffered heavy damage because of their exposure to SVB.
2/5: In the spirit of transparency, here’s everything we know about the situation with SVB:
Proof holds cash at SVB, however…
We’ve thankfully diversified our assets across ETH, stablecoins, as well as fiat—so financially and operationally, we’re going to be OK.
— PROOF (🥃,🦉) (@proof_xyz) March 10, 2023
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.”