NFT trading plummets after SVB crisis: Report

• NFT trading volumes took a massive hit after the collapse of SVB last week, according to a recent DappRadar report.
• There were only 11,440 active NFT traders the day after the FDIC took control of SVB, the lowest number since November 2021.

There were only 11,440 active non-fungible token (NFT) traders on March 11, the day after the Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank (SVB). It was the lowest number since November 20, 2021.

According to a report published on March 16 by decentralized app data aggregation platform DappRadar, NFT trading volumes took a massive hit following the collapse of SVB last week as traders fled the markets fearing the fallout from a major US bank failure.

On March 11, individual NFT trades were 11,440, the lowest daily total so far this year. Since the beginning of March, NFT trading volume has fallen 51%, while sales have fallen 15.88%.

Before SVB collapsed on March 10, NFT trading volume was between $68 million and $74 million; it then fell to $36 million on March 12. The drop was accompanied by a 27.9% drop in daily NFT sales during 9-11. March.

Blue-chip NFTs are not affected by the SVB crisis

Despite the general slowdown in NFT trading, the floor prices of blue-chip NFTs such as BAYC and CryptoPunks were barely affected.

It was on March 8 that SVG announced its decision to cease operations.

The floor price of BAYC NFTs fell from 71.3 ETH that day to 67.99 ETH on March 11 (a 5% drop).

Source: NFTPriceFloor

The floor price of CryptoPunk’s NFTs fell from 66.99 ETH that day to 64.99 ETH on March 11 (a 3% drop).

Source: NFTPriceFloor

The price drop has not been drastic, which shows the resilience of these top-tier NFTs.

A Twitter handle compared CryptoPunks to USDC, saying it was more stable than USDC, which lost its link to the US dollar after the collapse of SVG.

The NFT collective Moonbirds, on the other hand, were badly injured as a result of theirs exposure to SVB.

Moonbirds have lost 18% of their value over the weekend since the news broke. However, the floor price has risen slightly, reaching $6,642.83 (3.86 ETH).

Source: NFTPriceFloor

An Ethereum whale sold nearly 500 Moonbirds NFTs on March 11 for losses ranging from 9% to 33%. The address suffered losses from 9% to 33% when sold in lots, with 200 Moonbirds sold for a loss higher than 32%.

Yuga Labs, the collective behind BAYC and CryptoPunks has “super limited exposure” to the collapsed bank, so CEO Greg Solana; this meant that the fallout will have little effect on the company’s finances.

The DappRadar report added that the success of Yuga Labs has been boosted by the investment in CryptoPunks as well as the ability to create a community.