[{"category":{"name":"Trending News","exported_url":"trending-news"},"id":"fee608bb-8c9d-457b-a167-588c4feab20a","updated_at":"2023-03-20T10:04:40.19798+00:00","account":{"firstName":"Akash","lastName":"Kashyap"},"description":"Following the downfall of Silicon Valley Bank, the count of active NFT traders plummeted to the lowest level since November 2021.","sapo":"On the day following the Federal Deposit Insurance Corp.'s takeover of Silicon Valley Bank last Saturday, a mere 12,000 active NFT traders were reported by DappRadar. This figure has yet to be witnessed since November 2021.","title":"NFT Trading Volume Dropped to Lowest Point After SVB Collapse","content":"

Following the downfall of Silicon Valley Bank, the count of active NFT traders plummeted to the lowest level since November 2021.

What is Happening?

On the day following the Federal Deposit Insurance Corp.'s takeover of Silicon Valley Bank last Saturday, a mere 12,000 active NFT traders were reported by DappRadar. This figure has yet to be witnessed since November 2021. That day, single NFT trades amounted to 33,112, marking the lowest daily total this year. From the start of March, NFT trading volume has decreased by 51%, and sales have dropped around 16%, according to DappRadar.

Nonetheless, not all non-fungible token collections experienced the same impact. NFT projects from Yuga Labs, such as Bored Ape Yacht Club and CryptoPunks, saw minor declines in their floor prices on Saturday, but they quickly bounced back. One Twitter user compared CryptoPunks and USDC, asserting that it was more stable than the stablecoin, which lost its connection to the U.S. dollar after Silicon Valley Bank's downfall. The bank's collapse resulted from selling a significant portion of its assets at a loss to accommodate a surge in customer withdrawal requests.

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Other Said What

DappRadar research analyst Sara Gherghelas attributed Yuga Labs' success to its investment in CryptoPunks and its ability to foster a community. Although the company claimed it had minimal exposure to Silicon Valley Bank, its token holders didn't make significant moves in response to the news. Gherghelas explained that Yuga Labs maintains a clear roadmap and a visible team and continues to develop quality projects following the Ape ecosystem. Members enjoy numerous perks and benefits by being a part of their community.

However, not every collection escaped the Silicon Valley Bank collapse unharmed. Shortly after the news emerged on March 10, Proof, the NFT collective responsible for the popular Moonbirds collection, announced via Twitter that they had some funds invested in the bank. This revelation sparked apprehension among holders.

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During the weekend, Moonbirds' value dropped by approximately 18%, as reported by DappRadar. A major holder sold 500 Moonbirds on Saturday, suffering losses ranging from 9% to 33%, which amounted to over 700 ETH or around $1.1 million.

Gherghelas explained that the news of Proof's exposure to Silicon Valley Bank contributed to the project's uncertainty, but the company's recent shortcomings also prompted holders to sell. Following the cancellation of its Proof of Conference scheduled for May, the community has grown doubtful about the company's ability to fulfil its promises.

Gherghelas emphasized that people, users, and consumers are becoming more selective and are looking for more than just hype. They seek the perks, benefits, and utility of an NFT collection.

Explore more crypto insights and trending news with our Blogchain.

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","tags":[{"tag":{"tag":"NFT","id_tag":"nft"}},{"tag":{"tag":"SVB","id_tag":"svb"}}],"image":{"fileName":"nft-dropped.jpg"}}]

NFT Trading Volume Dropped to Lowest Point After SVB Collapse

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