SVB Collapse Drags Down NFT Trading Volume by 51%: Report
Following the California Department of Financial Protection and Innovation’s shutdown of Silicon Valley Bank earlier this month, startups remain uneasy about their future. Likewise, the non-fungible token (NFT) space is struggling to make sense of the banking crisis.
According to a report by DappRadar on Thursday, NFT trading volume has dropped by 51% since the beginning of March. The sales count has also taken a hit, falling by nearly 16%.
NFT traders are additionally becoming less active, as market participants increasingly question the stability of stablecoins. On March 11, the day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of traders was at approximately 12,000, a figure not seen since November 2021. Single NFT trades totaled 33,112 that day — the lowest daily tally in 2023.
Read Also: Mark Cuban Has One ‘Big Question’ After US Government Saves SVB, Signature Bank Depositors
Shortly after news of SVB’s collapse, Proof, the NFT collective behind the popular collection Moonbirds, shared that the company had some funds invested in the bank. Moonbirds lost about 18% of its value over the weekend.
DappRadar also noted that several top-tier NFTs have remained strong throughout the latest fiscal fiasco. Floor prices of blue-chip NFT issuer Yuga Labs, including those of Bored Ape Yacht Club (BAYC) and CryptoPunks, slightly dipped. Following a minor dip below $100,000 on March 11, the NFTs recovered quickly.
Read Next: Regulator Knew Days Before SVB Collapse That $620 Billion In Losses Lurked In Financial System