A study on the aftermath of the Silicon Valley Bank failure and its effects on non-fungible token trading activity and volume was published on Wednesday by blockchain analytics platform Dappradar.

Due to worries about liquidity, California state authorities seized Silicon Valley Bank on March 10 and turned it over to the Federal Deposit Insurance Corporation (FDIC). On March 13, the FDIC said that it will assist bank clients in getting access to their money as the oversight body tries to sell the bank that is bankrupt at auction. Numerous investors made efforts to dump their holdings of digital assets from businesses that had exposure to the bank.

The day after the bank was shut down on Saturday, March 11, just 12,000 active NFT traders were recorded, the lowest level since November 2021, according to Dappradar. Moreover, there were 33,112 fewer single NFT deals on Saturday than there had been overall in 2023.

According to Dappradar, NFT trading volumes have decreased by 51% since the beginning of March, while revenues have decreased by around 16%.

Not all NFT collections, nevertheless, were affected in the same way. Bored Ape Yacht Club and CryptoPunks, two projects from NFT juggernaut Yuga Labs, had a minor decline in floor pricing on Saturday but rapidly rebounded. One Twitter user likened CryptoPunks to USDC and said that it was more reliable than the stablecoin, which had lost its peg to the dollar following the bankruptcy of SVB.

According to Sara Gherghelas, a research analyst at DappRadar, Yuga Labs' success has been boosted by both its capacity to foster community and its investment in CryptoPunks. The firm claimed to have little exposure to SVB, yet its token holders did not react much to the news.

Gherghelas said:

“They have a very clear roadmap, the team is visible, and they decided to deliver a good project after the Ape ecosystem, they keep building, they are showing that if you're part of their community, they have so many perks and benefits.”

Not all collections were spared by the SVB bankruptcy. Proof, the NFT collective behind the well-known collection Moonbirds, tweeted shortly after the news emerged on March 10 to reveal that the firm had some assets invested in SVB, which caused some concern among holders.

While the announcement of Proof's exposure to SVB increased project uncertainty, according to Gherghelas of CoinDesk, many were compelled to sell due to the company's recent failings. The community is unsure about the company's capacity to fulfill its commitments after it postponed its Proof of Conference scheduled for May.

“People, users and consumers are becoming pickier and they don't want hype, they want the perks, the benefits and the utility behind that NFT collection,”

said Ghergelas.

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