SVB Drags Down NFT Trading Volume
Silicon Valley Bank (SVB) served as the foundation for many startups and venture capital funds worldwide. Its demise represents the largest banking failure since the 2008 financial crisis. While the crypto market has been largely unaffected, the same cannot be said for the non-fungible token (NFT) space.
According to the most recent edition of the DappRadar report, NFT traders went “numb” in response to the US banking crisis.
However, the de-pegging of one of the largest stablecoins, USDC, and the collapse of SVB were felt in the NFT market.
NFT trading volume has decreased by 51% since the beginning of March. The number of sales also dropped by nearly 16%. DappRadar said NFT traders are becoming less active as market participants questioned the stability of the stablecoins. The number of such traders on March 11th was recorded to be 12,000, a level not seen since November 2021. This was accompanied by the lowest single-day trade count in 2023 – 33,112.
(With inputs from Shikha Singh)
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