NFTs are a good investment option at present. Almost every investor is trying out this aspect as the returns are quite promising. In addition, you may improve your trading skills by using a reputable trading platform like Such Limmercoin app
But, as per certain reports, NFT sales are falling at quite the lowest rates in recent times. This massive fall is after the fall of SVB in the 1st week of March. But why is there a sudden decrease in sales? Learn through this blog below!
What Is Influencing NFT Sales?
DappRadar carried out a study this year. The report of this study reflects that NFT sales are falling all of a sudden. And this is a huge downfall that this market is facing after a long time!
The major reason behind this rapid decrease is the downfall of SVB or Silicon Valley Bank. It shows that there is a close link between the downfall of both SVB and NFT sales. After passing the control of SVB on FDIC, there is a dramatic decrease in NFT trades too.
More Details By This Report
This report also shows that this sharp decrease is on 11 March this year. The previous day, that is on 10 March, FDIC took charge of Silicon Valley Bank.
On this day, the number of active NFT investors counted about 11,440 only! This is the lowest since November 2021.
DappRadar published this data on 16 March which shows how the NFT sales faced a massive downfall. The traders exited this market with the fear of getting impacted by the downfall of SVB.
Fall In Trades In This Market
The total number of trades in this market was about 11,440, which is the lowest amount since last year! With the start of this month, the trading amount has been falling more than 51%. Also, the sales fell by over 15.88%, which is a massive rate!
This major downfall is after the SVB crisis. Before this collapse, the trades were ranging from 68 million USD to 74 million USD! And on 12 March, out of the blue, the trades came down to 36 million USD!
Besides that, this fall also came along with a 27.9% fall in regular NFT sales.
Which NFTs Are Not Influenced By This Aspect?
Although NFT markets are facing the consequences of the SVB crisis, all types of NFTs are not under its influence.
The major type of NFTs which are not touched by this collapse is Blue-chip ones! These NFTs, line BAYC or CryptoPunks are out of this crash’s impact. After the announcement of stopping operations by SVB, these NFT sales are minutely affected.
After the announcement, the minimum price of BAYC came down to 67.99 ETH from 71.3 ETH. In the case of CryptoPunks, this reduction came from 66.99 ETH to 64.99 on that very same day. But in comparison, this decrease seems quite lower than other types of NFT.
More Comparative Views
While comparing the blue-chip NFTs with other kinds, it is noticeable that these are daily less severe falls. A Twitter user made a similar comparison to highlight the difference.
This handle compares USDC and CryptoPunks. It points out that USDC was less stable than CryptoPunks because USDC lost its pegged value with the SVB crisis.
The main reason behind the low impact of this crisis on both these types of coins is that they have a limited amount of exposure to SVB. This means that any result on this bank will have quite a lower effect on CryptoPunks or BAYC.
ETH Whale Sells Huge Amount of NFTs
Following all these events and the SVB crisis, an ETH whale sells over 500 Moonbird NFTs. But this whale sold these NFTs at a loss of about 9-33% on average! In this group, the whale sold over 200 of these NFTs for a loss of about 32%.
A collective like Moonbirds is facing severe harm as it is exposed to SVB. After the spread of this news, this NFT group lost over 18% value.
Despite the huge popularity of NFTs, investors are exiting this market in the fear of loss following the SVB crash. But there are some NFT groups too, that are least affected by these kinds of crashes. To learn more about this market, join Bitcoin Smart today!