On March 16, DappRadar launched a report stating that the current failure of Silicon Valley Financial institution has had a severe influence on the transaction quantity of NFT. Earlier than the financial institution collapsed on March 10, NFT transaction quantity was hovering between $68 million and $74 million.

Nevertheless, on March 12, it dropped to simply $36 million. Moreover, the variety of NFT gross sales per day fell by 27.9% between March 9 and 11.

In keeping with DappRadar, there have been solely 11,440 “energetic” NFT merchants on March 11, the bottom quantity since November 2021.

Regardless of the decline in buying and selling exercise, the market capitalization of “blue chip” NFTs akin to Bored Apes Yacht Membership (BAYC) and CryptoPunks has not been materially affected, with solely a slight drop in ground costs.

The information is a blow to the NFT market, which has been rising steadily over the previous 12 months. Many business consultants have predicted that NFTs would be the way forward for artwork and collectibles, and so they have seen nice success, particularly with the rise of digital artwork.

The collapse of Silicon Valley Financial institution highlights the necessity for a extra secure and safe monetary infrastructure within the NFT market.

Because the business continues to evolve, it’s essential that members take steps to make sure the steadiness and security of the market to forestall comparable incidents sooner or later.

Regardless of current setbacks, the NFT market stays optimistic about its future prospects.