Being an asset class, the market sentiment can never be predicted. With events like SVB collapsing, the crypto market saw a ripple effect for the same. Starting from the de-pegging of the USDC stablecoin, and now the lowest NFT trading volume record since November 2021. The NFT sector has been going strong in 2023, with sale volume reaching record highs and the sector seeing a rise in mainstream adoption. However, incidences like the change in value of a token or the effect of one big incident on other tokens, or similar things are a common appearance for any asset class.
The Non fungible tokens or NFTs took a huge dip in its trading volumes soon after the collapse of Silicon Valley Bank (SVB) last week. This incident led to the traders leaving the markets thinking the results that a major United States bank going under can bring to the space.
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According to the data from DappRadar, a data aggregation platform, the NFT trading volume has gone down by 51% from the beginning of March 2023, with the sales count decreasing by 15.88%. In value, the NFT trading volumes have been hovering between $68 million to $74 million during the time, leading up to SVB’s collapse on March 10, 2023. The value then fell to $36 million on March 12, 2023.
During the time period from March 9,2023 to March 11, 2023, the NFT sales saw a drop by around 27.9%; in daily NFT sales count along with a significant drop in daily active users. According to data, about 11,440 NFT traders were “active” on March 11, 2023.
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Interestingly, as data showed a low NFT trader activity, the NFT volume was not affected in that same ratio. Experts are of the though that result might be because of the Ethereum NFT whales continuing their farming activity for Blur Season 2.
Another interesting data to see, with the ongoing trading chills the market value of the “blue chip” NFTs did not experience material impact. This is because the floor prices of the collections such as the Bored Apes Yacht Club or BAYC and CryptoPunks only saw a slight dip.
CryptoPunks more stable than most stablecoins in the last 6 months pic.twitter.com/qVdMCLTFOr
— seedphrase (@seedphrase) March 11, 2023
The floor price of BAYC NFTs saw a 2% dip and 68.4 Ether (ETH) to 67 ETH since the SVB collapse incident took place.
DappRadar commented, “The recovery was quick, showing the resilience of these top-tier NFTs. Blue-Chip NFTs remain a steady investment in a disrupted market.”