NFT Trading Plunges After SVB Collapse: DappRadar
• The collapse of Silicon Valley Bank caused NFT trading volumes to plummet, with daily sales count dropping 27.9% and the lowest number of active traders since November 2021.
• USD Coin’s depeg had traders turning away from the NFT market, resulting in decreased activity.
• Despite this, blue chip NFTs such as Bored Apes Yacht Club and CryptoPunks showed resilience with only slight drops in floor prices.
SVB Collapse Chills NFT Trading Volumes
The collapse of Silicon Valley Bank last week had a massive impact on nonfungible token (NFT) trading volumes, as traders feared the repercussions of a major United States bank going under. According to data aggregation platform DappRadar, NFT trading volumes dropped from $68 million to $36 million on March 12 following SVB’s collapse on March 10. This dip was accompanied by a 27.9% drop in daily NFT sales count between March 9 to March 11, with just 11,440 active traders recorded on March 11 – the lowest figure since November 2021.
USD Coin Depeg Moves Trader Attention Away From NFT Market
The depeg of USD Coin – which dropped as low as $0.88 – moved trader attention away from the NFT market, resulting in decreased activity among traders who were uncertain about what would come next. As a result “NFT traders became less active” according to Dappradar’s report.
Resilience Among Top-Tier NFTs
Despite the trading chills caused by SVB’s collapse and USD Coin’s depeg, top-tier blue chip NFTs remain resilient investments amidst disruption in the market. The floor prices of collections such as Bored Apes Yacht Club (BAYC) and CryptoPunks only slightly fell – 2% for BAYC from 68.4 ETH to 67 ETH – showing that these valuable digital assets are reliable investments even during turbulent times like these.
Impact On Secondary Markets
It is unknown how much secondary markets have been affected by the events surrounding SVB’s collapse and USD Coin’s depeg; however it is safe to assume that there will be some degree of decline due to investor uncertainty and hesitance when it comes to investing their money into digital assets amidst financial instability across markets worldwide..
The resilience demonstrated by top-tier blue chip NFTs shows that they remain reliable investments even during uncertain times such as these; however more research needs to be done into how secondary markets have been impacted by recent events surrounding Silicon Valley Bank’s collapse and USD Coin’s depeg before any definitive conclusions can be drawn about their performance going forward..