SVB saga saw NFT sales drop to November 2022 low
The number of NFT traders actively trading on March 11 was only 11,440, the lowest amount reported since November 2021.
This decline in traders can be attributed to fear that the implications of a central United States bank failing might have been instilled in investors, leading to the trading volumes of nonfungible tokens suffering a tremendous hit after the failure of Silicon Valley Bank last week.
According to a study published on March 16 by the data aggregation platform DappRadar, trade-in nonfungible tokens (NFTs) were between $68 million and $74 million in the days leading up to the collapse of SVB on March 10. Still, it dropped to $36 million the next day.
Throughout the week from March 9 to March 11, the daily sales of nonfungible tokens saw a reduction of 27.9%.
According to the study published on March 16 by the data aggregation platform DappRadar, the amount of trade in nonfungible tokens (NFTs) was between $68 million and $74 million in the days leading up to the collapse of SVB on March 10. Still, it dropped to $36 million the next day.
Throughout the week from March 9 to March 11, the daily sales of nonfungible tokens saw a reduction of 27.9%. DappRadar also reveals that the number of NFT traders who were “active” on March 11 was only 11,440, the lowest amount recorded since November 2021.
The research states that the depeg of the USD Coin, which caused the cryptocurrency price to fall to as low as $0.88, diverted trader focus away from the NFT market.
Dappradar noted that because of this, NFT traders were less active.
Who got hit by the collapse?
Nevertheless, after the discovery that PROOF, the team behind the NFTs, had significant exposure to SVB, the floor price of the Moonbirds collection on OpenSea dropped significantly by 35.3%, from 6.18 ether to 4 ether, bringing the total price of the collection to a new all-time low.
According to DappRadar, this was primarily caused by one Ethereum address selling approximately 500 Moonbirds NFTs for losses ranging from 9% to 33%.
The buy-and-sell transactions on the NFT marketplace Blur resulted in a total loss of 700 ether.
BAYC dominated despite the general decline
The market value of “blue chip” NFTs was not considerably influenced by the trading chills, with the floor pricing of sets such as the Bored Apes Yacht Club (BAYC) and CryptoPunks just modestly decreasing. This was even though trading chills occurred.
According to DappRadar, the recovery was swift, illustrating the robustness of these top-tier NFTs. Blue-Chip NFTs remain a stable investment in an industry that is being disrupted.
According to the BAYC and CryptoPunks co-founder Greg Solano, the company behind the collections, Yuga Labs, has confirmed that they only had minimal exposure to SVB. This may be a contributing factor to the stable floor pricing of both of these collections.