• NFT trading volumes took a massive hit following the collapse of SVB last week, according to a report published by DappRadar. On 11 March, there were only 11,440 active NFT traders – the lowest count since November 2021.
• Single NFT trades totaled 11,440 on 11 March and trading volume has dropped 51% since the beginning of March. Blue-chip NFTs have not been affected by the SVB crisis as much as other NFTs.
• The Moonbirds collective was severely harmed due to its exposure to SVB; its floor price fell 18% over the weekend but has risen slightly since then.

Impact of Silicon Valley Bank (SVB) Collapse on Non-fungible Token (NFT) Trading

Lowest Count Since November 2021

On 11 March, single non-fungible token (NFT) trades totaled 11,440, representing the lowest daily total so far this year according to a recent report published by decentralized app data aggregation platform DappRadar. This occurred after Federal Deposit Insurance Corporation (FDIC) took control of Silicon Valley Bank (SVB). There were only 11,440 active NFT traders on that day – the lowest count since 20 November 2021. As a result of this event, trading volume has dropped 51%.

Blue-Chip NFTs Resilient

Despite overall decline in NFT trading caused by the collapse of SVB last week, blue-chip tokens such as BAYC and CryptoPunks have proved resilient with their floor prices falling just 5% and 3%, respectively from 8-11 March. It is even suggested that CryptoPunks are more stable than USDC which lost its peg to U.S dollar following SVG’s downfall.

Moonbirds Collective Severely Harmed

The Moonbirds collective was severely impacted due to its exposure to SVB; its floor price fell 18% over the weekend but has seen slight increase since then with it hitting $6642.83 (3.86 ETH). An Ethereum whale sold nearly 500 Moonbirds for losses ranging from 9%-33%.

Impact On Collectives

The impact of this event goes beyond individual traders and can be seen across collectives too as Yuga Labs which stands behind BAYC and CryptoPunks had “super limited exposure” to collapsed bank in contrast with Moonbirds collective which clearly suffered major losses due to same event being exposed more heavily to aforementioned company’s failure .

Conclusion

Overall it can be seen how in wake of Silicon Valley Bank’s downfall , market responded accordingly with sharp drop in individual activity leading up to significant decrease in volumes causing negative impacts both on individual investors as well entire collectives .