NFT Trading Volumes Plunge After Silicon Valley Bank Collapse

Non-fungible tokens, or NFTs, have been a hot topic in the crypto and art worlds lately, with some NFT artworks selling for millions of dollars. NFTs are unique digital assets that are authenticated on a blockchain, giving them a certain level of rarity and value. However, the collapse of Silicon Valley Bank has had a significant impact on the NFT market, with trading volumes and sales counts plummeting.

Silicon Valley Bank is a major US bank that provides banking and financial services to technology and life science companies. Its collapse on March 10 sent shockwaves through the financial industry and caused fear and uncertainty among traders, including those in the NFT market. The drop in NFT trading volumes from $74 million to $36 million, as reported by DappRadar, shows how much the market was affected by the bank’s collapse. This decline in trading volume was accompanied by a 27.9% drop in daily NFT sales count between March 9 and March 11.

The decrease in NFT trading volumes and sales counts is a cause for concern, as it indicates a lack of confidence in the market. Traders are understandably worried about the potential repercussions of a major US bank going under, and this has led many to flee the market altogether. The low number of active NFT traders on March 11, at just 11,440, was the lowest recorded since November 2021, which further illustrates the impact of the bank’s collapse.

This setback for the NFT market comes at a time when the industry has been gaining significant attention and traction. The market for NFTs has exploded in recent months, with artists, musicians, and athletes all jumping on the bandwagon. However, the NFT market is still relatively new, and events like the collapse of Silicon Valley Bank serve as a reminder of its volatility.

It is worth noting that the NFT market is not the only one affected by the collapse of Silicon Valley Bank. The bank’s clients in the technology and life science sectors are also feeling the impact, as they may have difficulty accessing funds and financing. The bank’s collapse may also have wider implications for the broader financial industry, as it raises questions about the stability of the banking system.

Despite the recent setback, there is reason to believe that the NFT market will recover. The market has shown resilience in the face of previous challenges, and it is likely that traders will return once the dust settles. However, the industry will need to address the concerns raised by the collapse of Silicon Valley Bank and work to build confidence and stability in the market.

In conclusion, the collapse of Silicon Valley Bank has had a significant impact on the NFT market, with trading volumes and sales counts dropping sharply. This setback serves as a reminder of the volatility of the NFT market and raises concerns about its stability. However, the market has shown resilience in the face of previous challenges, and it is likely that it will recover in due course. The industry will need to address the concerns raised by the bank’s collapse and work to build confidence and stability in the market moving forward.


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Bitcoin’s Social and Trading Volumes Hit a 5-Week High as Address Activity Surge to a 3-Week High

As Bitcoin (BTC) continues testing the $40K waters, its social and trading volumes go through the roof, as acknowledged by Santiment.

The on-chain metrics provider explained:

“How did Bitcoin recover to $40K out of the blue? 3 of our key leading metrics all skyrocketed! BTC’s social and trading volumes hit a 5-week high, and address activity hit a 3-week high. When this trio jumps in unison, good things typically happen.”


Bitcoin’s address activity is also not being left behind because it hit a record-high in the last three weeks. Recently, the number of daily active BTC addresses surged by 44.1%.

Therefore, Bitcoin daily active addresses tend to be correlated with the price action, given that investors often follow the price rather than use the asset. 

Heating Bitcoin futures markets

According to data analytic firm IntoTheBlock:

“Alongside the return to $40K, Bitcoin futures markets are heating up once again. Funding rates are once again neutral or positive across several major exchanges, pointing to a majority of long positions being opened over the past few days.”


BTC funding rate recently flipped over to positive as 2.1 million returned to be profitable. The crypto community had been waiting with bated breath to see Bitcoin’s next move as low volatility continued engulfing this market.

Is Institutional money back?

Jan Wuestenfeld, an on-chain analyst, believes that a negative correlation between the dollar index (DXY) and Bitcoin could signal a return of institutional money in the BTC market. He pointed out:

“The USD index (DXY) and Bitcoin’s price have started to show a negative correlation again. This negative correlation has been there this bull-run until the beginning of this year and then did break down. Of course too early to tell, but it might be an indication that inst. money is back.”


Given that 325,000 BTC was previously purchased at this level with significant resistance expected around $42K, the current upward momentum will continue to be observed. 

Image source: Shutterstock


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Bitcoin and Ethereum Trading Volumes Go Through the Roof

Bitcoin (BTC) and Ethereum (ETH) have ushered in the new year in style after making record-breaking moves. The leading two cryptocurrencies are putting the crypto space in the limelight by showcasing the huge potential in this sector.

Bitcoin and Ethereum trading volumes go through the roof

New data by Santiment reveals that history has been made as BTC nearly hit the $35,000 price with Ethereum soaring past the $1,000 mark. The on-chain data provider noted

“As history has been made with $34.8k BTC and $1,030 ETH seemingly out of nowhere, trading volume highs have also been made for the top two market cap assets in crypto over the past couple of days.”

With both Bitcoin and Ethereum prices going through the roof, their trading volumes have tagged along as they have surged to record highs. The Ethereum price has continued to surge to $1090 and is currently at this level at the time fo writing.

Fingers kept closed

Before the new year set in, crypto traders had kept fingers closed that BTC’s price could break the $30,000 price after the leading cryptocurrency hit a record high of $29,200 on Dec 31. Their quest was answered two days later because Bitcoin sailed past the $30,000 threshold for the first time in its history and jumped as high as $34,800 even though it has corrected to $32,900 at the time of writing. 


Ethereum has also been enjoying a rollercoaster ride thanks to a booming decentralized finance (DeFi) sector and the launch of the much-anticipated ETH 2.0, which triggered the transition to a proof-of-stake consensus mechanism from the present proof-of-work. For instance, open interest for Ethereum Futures soared to an all-time high of $2.21 billion late last month.  


Vitalik Buterin, the Ethereum founder, has noted that the explosion of BTC and ETH prices has been triggered by the fact that gold is lame. Bitcoin billionaire Tyler Winklevoss echoed his sentiments in September as he acknowledged that BTC was 10X better than gold because it was beating the latter at its own game.


With the two leading cryptocurrencies kickstarting the year on a high, time will tell what they have in store in 2021. 

Image source: Shutterstock


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Bitcoin (BTC) $ 43,704.71 0.71%
Ethereum (ETH) $ 2,228.83 2.79%
Litecoin (LTC) $ 72.58 1.66%
Bitcoin Cash (BCH) $ 245.02 2.67%