NFT Trading Volumes Tanked After Silicon Valley Bank Collapse: Report
• The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank (SVB), NFT trading volumes tanked to their lowest point since November 2021, according to DappRadar.
• Single NFT trades totaled 33,112 on that day, the lowest daily tally so far this year. Trading volume overall has fallen 51% since early March, with sales declining about 16%.
• Despite the decline in volumes, projects from NFT issuer Yuga Labs still experienced price stability and even slight recovery soon afterward.
Collapse of SVB Tanked NFT Trading Volumes
The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank (SVB), the number of active NFT traders dropped to its lowest point since November 2021, according to a report by DappRadar. Single NFT trades totaled 33,112 on that day – the lowest daily tally so far this year – while trading volume overall has fallen 51%, with sales declining about 16%.
Yuga Labs Projects Seemed Unaffected by SVB Collapse
Despite the dip in overall volumes, projects from NFT issuer Yuga Labs still experienced price stability and even slight recovery soon afterward. This includes Bored Ape Yacht Club and CryptoPunks collections which maintained their floor prices despite the downturn in market activity following SVB’s collapse.
Animoca Brands Co-Founder Weighs In On Market Outlook
Animoca Brands co-founder and Executive Chairman Yat Siu reacts to this report and discussed his outlook for the NFT market and its broader state within Web3. He also provided insights into Animoca’s backing of Nuqtah – Saudi Arabia’s first ever marketplace platform for non-fungible tokens – which is launching later this month on March 31st.
Nuqtah – Saudi Arabia’s First Marketplace Platform For Non-Fungible Tokens
Animoca Brands recently announced their backing of Nuqtah – Saudi Arabia’s first ever marketplace platform for non-fungible tokens – set to launch later this month on March 31st. The platform will allow users from across the Middle East region to purchase or trade a wide variety of digital assets such as blockchain art or collectibles using cryptocurrency payments via an integrated wallet system for added security.
Outlook for Web3 & The Future Of The NFT Market
Looking ahead at what lies ahead for Web3 and especially within the non-fungible token space, Siu predicted that “we will see more liquidity entering these markets over time as more people adopt DeFi products like stablecoins.“ He further emphasized that “we need more retail investors entering these markets so that they can drive up demand and bring more value into these networks.“