Non-fungible token (NFT) trading volumes took a major beating following the collapse of Silicon Valley Bank (SVB) last week, as traders fled the markets fearing the repercussions of the failure of a major U.S. bank. USA.
According to a March 16 report From data aggregation platform DappRadar, NFT trading volumes ranged from $68 million to $74 million in the run-up to SVB’s collapse on March 10, then fell to $36 million on March 12.
The drop was accompanied by a 27.9% drop in the daily NFT sales count between March 9-11.
11,440 NFT traders were also “active” on March 11, the lowest number recorded since November 2021 according to DappRadar.
The report explained that the unpegging of USD Coin (USDC), which hit as low as $0.88, took traders’ attention away from the NFT market:
As a result, “NFT traders became less active,” Dappradar explained.
Despite the trading chills, the market value of “blue-chip” NFTs was not materially affected, with the floor prices of collections like Bored Apes Yacht Club (BAYC) and CryptoPunks only falling slightly.
“The recovery was quick and showed the resilience of these top-tier NFTs,” said DappRadar. “Blue-Chip NFTs remain a steady investment in a disrupted market.”
BAYC and CryptoPunks constant low prices can be attributed to the company behind the collections, Yuga Labs, confirming that it only had “super limited exposure” to SVB, according to co-founder Greg Solano.
Related: 74% of survey participants say they buy NFTs for the state
However, the minimum 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 NFTs, had a considerable exposure to SVB.
This was partially triggered by an Ethereum address selling almost 500 Moonbirds NFTs for losses ranging from 9% to 33%, DappRadar explained.
The NFT Blur market sell-offs totaled a loss of 700 Ether (ETH).
