The crypto and NFT industry was shaken last week when Silicon Valley Bank (SVB) was seized by California state regulators due to liquidity concerns. The Federal Deposit Insurance Corporation (FDIC) has since stepped in to help bank customers access their funds, but the incident has had a profound impact on non-fungible token (NFT) trading activity and volume.
According to Dappradar’s latest report released Wednesday, there were only 12,000 active NFT traders on Saturday March 11 – the day after SVB’s collapse – a number not seen since November 2021. On that same day there were 33,112 single NFT trades -the lowest of 2023 thus far- indicating an overall decrease in interest for digital asset trading following the bank’s closure. Overall from beginning of March until now ,NTF trading volumes have dropped 51%, with sales declining at an even steeper rate of 66%.
This news comes as no surprise considering many investors who held digital assets from companies exposed to SVB made moves quickly offload their assets before any further losses occurred . It is likely that these numbers will continue dropping over time if more measures are not taken soon by both state and federal authorities alike .
In light of this situation it is important for crypto investors and enthusiasts alike be aware about potential risks associated with holding digital assets within banks or other financial institutions which may be susceptible similar situations like what happened with Silicon Valley Bank . Taking steps such as diversifying investments across multiple exchanges can help mitigate risk while also helping ensure your funds remain secure during times uncertainty or market volatility.
