By Philip Maina
5 hours agoSat Mar 18 2023 08:32:45
Reading Time: 2 minutes
- A report by DappRadar has revealed that the NFT market suffered from the collapse of Silicon Valley Bank
- DappRadar notes that the traded amount dropped from $72 million to $36 million
- The number of daily NFT sales also dropped by close to 28%
A report by DappRadar has indicated that the recent troubles at Silicon Valley Bank (SVB) also affected the NFT market. The data aggregator noted that the trading volume across the market dipped by roughly 50% moving from a high of $70 million to a low of $36 million between March 9 and 12. The number of daily NFT sales also dropped by around 28% within approximately the same timeframe.
Trader Numbers Dropped to November 2021 Lows
According to the report, on March 11, when SVB’s troubles gripped the crypto and NFT market, only close to 11,440 NFT traders were traversing the collectibles market, making it the lowest number in over a year and four months.
Notably, the value of popular virtual artworks such as Bored Apes remained largely intact despite the ongoing turmoil in the market, with DappRadar noting that these types of collectibles are a good investment especially during a volatile period.
With most of the leading NFTs being from Yuga Labs, the collectibles’ strength during the market shakeup may be due to Yuga’s disclosure that they had a negligible exposure to the collapsed bank.
NFT Floor Price Drops by 35%
Other NFT projects whose developers had significant connections with SVB felt market’s instability between March 9 and 12. For example, Moonbirds NFTs recorded a 35% drop in floor price after its developer PROOF disclosed a huge investment in SVB.
Apart from SVB woes, Signature Bank’s collapse and USD Coin decoupling from a 1:1 peg to the US dollar also contributed to a drop in NFT trading and sales volume. Although the crypto and NFT markets have recovered from the two banks’ collapse, these markets aren’t out of the woods yet as U.S. regulators mull over the next steps.