Silicon Valley Bank (SVB) Collapse Causes NFT Trading Volume to Plunge

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

    According to a March 16 report from data aggregator platform DappRadar, the day after the Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank, there were only about 12,000 active NFT traders left.

    As in the report, NFT trading volume fluctuated between $68 million and $74 million before SVB collapsed on March 10, then dropped to $36 million on March 12.

    The drop was accompanied by a 27.9% drop in daily NFT sales between March 9 and March 11.

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

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

    However, not all NFTs 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 recovery was quick, showing the resilience of these top-tier NFTs,” said DappRadar. “Blue-Chip NFTs remain a steady investment in a disrupted market.”

    The steady floor prices of the BAYC and CryptoPunks may be attributed to the team behind the collections, Yuga Labs, confirming it only had a “super limited exposure” to SVB, according to co-founder Greg Solano.

    Meanwhile, Moonbirds and PROOF suffered heavy damage.

    Accordingly, the floor price of the Moonbirds collection dropped a significant 35.3% from 6.18 ETH to 4 ETH on OpenSea, following the news that PROOF — the team behind Moonbirds — had exposure to SVB.

    Moonbird’s floor price since SVB’s collapse (Source: OpenSea)

    Most Popular

    Related Posts