DappRadar: The collapse of banks in Silicon Valley has led to a significant impact on NFT trading volume

On March 17th, according to a report by DappRadar on March 16th, before the collapse of the Silicon Valley bank on March 10th, NFT trading volume hovered between $68 million and $74 million, and then fell to $36 million on March 12th. From March 9 to March 11, the daily sales volume of NFT decreased by 27.9%.

Interpretation of this information:

The recent report by DappRadar suggests that the NFT (Non-Fungible Token) trading volume had been consistently hovering around $68 million to $74 million before the collapse of the Silicon Valley bank on March 10th. However, in just two days after the incident, the trading volume sharply plunged to $36 million on March 12th, which is quite a significant drop in just two days.

Moreover, according to the report, the trading volume of NFT decreased by 27.9% during the three-day period from March 9th to March 11th. While the report doesn’t provide any specific reason for this drop in trading volume, it can be speculated that the collapse of the Silicon Valley bank might have played a significant role in it. The collapse has caused a sense of uncertainty and unpredictability in the market, which in turn has caused the traders to stay cautious and refrain from investing blindly.

The current market situation has made it quite imperative for the NFT trading platforms to restore the confidence of their users and bring back the lost momentum. They need to take necessary measures to ensure the safety and security of the traders’ investments, which can further strengthen the users’ trust and lead to increased trading volumes.

Despite the recent drop in trading volume, experts believe that the future of NFT still seems promising. It is still a relatively new concept that is rapidly gaining traction, and several big players like NBA, Christies, and Sotheby’s are already investing in the NFT world. This proves that the NFT is not just a fleeting trend but has the potential to become a significant part of the modern economy in the long run.

In conclusion, the recent report clearly indicates a sharp drop in NFT trading volume post the collapse of the Silicon Valley bank. While the reasons behind the drop are unclear, it is vital for the NFT trading platforms to regain the users’ trust to revive the lost momentum. Despite the recent slump in the trading volume, it is still believed that NFT has the potential to become a significant part of the modern economy, and it is just a matter of time before the NFT market picks up the pace.