• The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of active NFT traders dropped to its 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.
• Projects from NFT issuer Yuga Labs, including Bored Ape Yacht Club and CryptoPunks, saw their floor prices dip slightly on Saturday but quickly recovered.

Silicon Valley Bank Collapse Causes Tanked NFT Trading Volumes

The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of active Non-Fungible Token (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 with trading volume having fallen 51% and sales declining about 16%.

Yuga Labs Projects Remain Stable Despite Collapse

Projects from NFT issuer Yuga Labs were largely unaffected by the collapse with their floor prices dipping slightly but quickly recovering. One Twitter user even 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 Co-Founder Reacts

Animoca Brands co-founder and Executive Chairman Yat Siu reacted to this report discussing his outlook for the NFT market and broader state of Web3 as well as insights into Animoca backing Nuqtah; Saudi Arabia’s first NFT marketplace platform.

Effects On The Long Term Outlook Of The Market

Though it is too soon to tell what long term effect this event will have on the market it is clear that short term effects have been drastic with trading volumes hitting an all time low in recent years due both directly and indirectly caused by this event further cementing Web3’s place in society as a reliable source of decentralized value exchange.

Conclusion

Overall while there may be some turbulence in the near future due to events like these it is important not lose sight of Web3’s potential for creating a trustless financial ecosystem that can offer greater security and stability than ever before seen throughout history .