Silicon Valley Bank (SVB) has been the backbone of many startups and venture capital funds around the world. Its failure marks the biggest bank failure since the 2008 financial crisis. While the cryptocurrency market has been largely unaffected, the same cannot be said for the Non Fungible Token (NFT) space.
According to the latest edition of the DappRadar report, NFT traders have become “numbed” in response to the banking turmoil in the US.
The NFT space in banking chaos
The NFT industry has followed a steady upward trajectory for most of 2023. In fact, while mainstream adoption of NFTs has also surged, sales have hit record highs as the broader market recovers. However, the collapse of SVB and the de-pegging of USDC, one of his largest stablecoins, has been felt in the NFT market.
Since early March, NFT trading volume has fallen by 51%. Sales numbers also took a hit, dropping nearly 16%. Dapp Radar Said NFT trader activity has slowed as market participants questioned the stability of stablecoins. The number of such traders on March 11th was recorded at 12,000, a level not seen since November 2021. This was accompanied by his 2023 low of 33,112 daily trades.
Despite the low activity of NFT traders, the data aggregation platform says volume has not been impacted in the same proportion. This may be attributed to three consecutive months of surpassing volume.
Blue-Chip NFTs are unaffected
Top NFTs remained resilient throughout the event. Floor prices for quality NFTs such as Bored Ape Yacht Club (BAYC) and CryptoPunks were largely unaffected. After dipping just below $100,000 on March 11, the numbers quickly recovered.
Other fine collections such as Azuki and Art Blocks were also unharmed. Meanwhile, Moonbirds and the Proof ecosystem have been hit hard by the exposure to Silicon Valley banks. Proof previously said the potential loss would not affect the security of the client’s assets or the project’s roadmap.
However, since the news spread, Moonbirds have lost 18% of their value. After that, the lowest price recovered and climbed to $6,207 (about 4 ETH).
Yuga Labs, meanwhile, revealed “very limited exposure” to the collapsed bank. This means that project finances will not be significantly impacted by fallout.
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