Trending Topic: SVB Collapse Contributes To Significant Drop In NFT Trading Volumes

As one of the most valuable NFTs, it is unlikely not to find Bored Ape Yacht Club [BAYC] among the top collections with the most volume week-in and week-out. But the trend of the last 24 hours was not one of surging sales, but rather rising social attention.

Following the California Department of Financial Protection and Innovation's shutdown of  Silicon Valley Bank  earlier this month, startups remain uneasy about their future. Likewise, the non-fungible token (NFT) space is struggling to make sense of the banking crisis.

Blue-chip NFTs remained unaffected for the most part.

Three cases of bank collapse have recently occurred and impacted the NFT market. These banks include Signature Bank, Silvergate, and Silicon Valley Bank.

The recent collapse of the Silicon Valley Bank (SVB) and the USD Coin (USDC) de-peg halted the hype around Non-Fungible Tokens (NFTs) while benefitted the activity on Decentralized Finance (DeFi), as the recent DappRadar report revealed.

NFT trading volumes dropped from $74 million to $36 million after the collapse of Silicon Valley Bank. Daily NFT sales count also fell by 27.9% between March 9 and March 11, and active NFT traders hit a low of 11,440 on March 11, the lowest recorded since November 2021.

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

According to a recent report by DappRadar, the recent US banks' saga saw NFT sales drop by close to 50%. However Despite the drop the BAYC showed dominance as others plunged.

Only 11,440 NFT traders were active on March 11 which was the lowest figure recorded since November 2021.

The day after Silicon Valley Bank collapsed, the number of active NFT traders dropped to its lowest point since November 2021.