On March 16, DappRadar released a report stating that the recent failure of Silicon Valley Bank has had a serious impact on the transaction volume of NFT. Before the bank collapsed on March 10, NFT transaction volume was hovering between $68 million and $74 million.
However, on March 12, it dropped to just $36 million. Additionally, the number of NFT sales per day fell by 27.9% between March 9 and 11.
According to DappRadar, there were only 11,440 “active” NFT traders on March 11, the lowest number since November 2021.
Despite the decline in trading activity, the market capitalization of “blue chip” NFTs such as Bored Apes Yacht Club (BAYC) and CryptoPunks has not been materially affected, with only a slight drop in floor prices.
The news is a blow to the NFT market, which has been growing steadily over the past year. Many industry experts have predicted that NFTs will be the future of art and collectibles, and they have seen great success, especially with the rise of digital art.
The collapse of Silicon Valley Bank highlights the need for a more stable and secure financial infrastructure in the NFT market.
As the industry continues to evolve, it is critical that participants take steps to ensure the stability and safety of the market to prevent similar incidents in the future.
Despite recent setbacks, the NFT market remains optimistic about its future prospects.