NFT Market Takes a Hit After Silicon Valley Bank Collapse

• After the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of active NFT traders dropped to 12,000- its lowest mark since November 2021.
• According to DappRadar, NFT trading volume has fallen 51% and sales declined 16% since the beginning of March.
• Projects from NFT issuer Yuga Labs saw their floor prices dip slightly but quickly recovered on Saturday.

Collapse Of Silicon Valley Bank Tanked NFT Trading Volumes

The day after the Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of active NFT traders dropped to 12,000 – its lowest point since November 2021 according to DappRadar. Furthermore, in just a week’s time (since the beginning of March), overall NFT trading volume fell by 51%, with sales declining about 16%.

Yuga Labs Collections Not As Affected

Despite this overall decrease in activity within the market, projects from NFT issuer Yuga Labs seemed not as affected by this downturn. Bored Ape Yacht Club and CryptoPunks collections saw only slight dips in their floor prices with quick recoveries on Saturday – one Twitter user even comparing CryptoPunks’ stability to that of USDC (the stablecoin which lost its peg due to SVB’s collapse).

Animoca Brands Co-Founder & Executive Chairman Yat Siu Reacts To This Report

Animoca Brands co-founder and Executive Chairman Yat Siu had his own take on this report, discussing his outlook for the NFT market and broader state of Web3. He also gave insights into Animoca backing Nuqtah – Saudi Arabia’s first ever NFT marketplace platform.

Nuqtah & Saudi Arabia’s First Ever NFT Marketplace Platform

Nuqtah is a blockchain-based platform that allows users from all over Saudi Arabia (and MENA region) access to buy, sell and trade various types digital assets such as artworks, music and games – essentially creating an open market for non-fungible tokens within Saudi Arabia itself. Animoca Brands was able to back this project financially through strategic investments – ultimately allowing Nuqta entrepreneurs in Saudi Arabia access to resources they wouldn’t normally have outside sources or mentorships.

Outlook For The Future Of The Market

Though short term trends are hard to predict given recent events surrounding Silicon Valley Bank’s collapse – animists like Siu remain optimistic about long term prospects for both Animoca Brands and other players involved in the industry thanks to strong fundamentals behind non-fungible tokens themselves and increasingly accessible infrastructure for developers/users alike worldwide.