• The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, active NFT traders dropped to its lowest point since November 2021.
• According to DappRadar, single NFT trades totaled 33,112 on that day and NFT trading volume has fallen 51% since the beginning of March.
• Despite this collapse, projects from NFT issuer Yuga Labs, including Bored Ape Yacht Club and CryptoPunks, saw their floor prices dip slightly on Saturday but quickly recovered.
Collapse of Silicon Valley Bank Tanked NFT Trading Volumes
The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, there were only 12,000 active NFT traders according to DappRadar – a number not seen since November 2021. Single NFT trades totaled 33,112 on that day; the lowest daily tally so far this year. Additionally, since the beginning of March there has been a 51% drop in overall trading volume and sales have decreased 16%.
Yuga Labs Projects Not Affected as Much
Not all collections of non-fungible tokens were affected in the same way though; projects from NFT issuer Yuga Labs including Bored Ape Yacht Club and CryptoPunks saw their floor prices dip slightly on Saturday but quickly recovered. One Twitter user compared CryptoPunks to USDC claiming it was more stable than the stablecoin which lost its peg to the U.S. dollar after Silicon Valley Bank’s collapse.
Animoca Brands Reacts and Discusses Web3 Outlook
Animoca Brands co-founder and Executive Chairman Yat Siu reacts to this report and discusses his outlook for the NFT market and the broader state of Web3 plus insights into Animoca backing Nuqtah Saudi Arabia’s first NFT marketplace platform.
First Public Apperance Since Assumption as CEO
Daniel Alegre is also featured in this article as he makes his first public appearance since assuming his position as CEO at Yuga Labs. Here he provides further insight into how his company has been affected by these changes in the market along with what actions they are taking next to secure their place within it going forward.
Although there have been drastic decreases in both active traders along with trading volumes within the world of non-fungible tokens due to Silicon Valley Bank’s collapse last week; there is still a wide range of opinions about what will happen next for both individual companies such as Yuga Labs along with Web3 overall from industry experts like Animoca Brands co-founder Yat Siu .