Top NFT Art Projects Were Not Significantly Impacted By Silicon Valley Bank's Failure.

The failure of Silicon Valley Bank had little impact on blue-chip NFT art initiatives like CryptoPunks, Bored Ape Yacht Club, or Bored Ape Yacht Club.

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The market has been growing this year after a rocky 2022, when non-fungible token projects witnessed a 97% decline in trading volume. According to a Mar. 16 analysis by DappRadar, a company that observes and examines decentralized applications, the recent failure of multiple U.S. banks, including Silicon Valley Bank, hasn't had much of an impact on well-known NFT projects such as the Bored Ape Yacht Club and CryptoPunks.

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"Blue chip collections have shown to be an useful asset class during the recent financial and banking crises, sustaining their value amid market instability. Sara Gherghelas, an expert at DappRadar, wrote in an email to MarketWatch, "This is particularly true for collection like CryptoPunks, that have been recognised as commodities and assets in their own right.

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The floor price of CryptoPunks has been consistent throughout the last six months, matching the stability of stablecoins. The growing consumer appreciation of the worth and utility of NFT collections is also a result of the NFT market's maturation.

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The cost of the least expensive work of art in a museum is known as the floor price.

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After the failure of Silicon Valley Bank and the demise of symmetric encryption Signature and Silvergate Banks, digital asset investments—long seen as risky—have done well. This is especially true after the collapse of cryptocurrency exchange FTX in November 2022. Earlier this week, Bitcoin BTCUSD, 2.42%, had its highest three-day showing since October 2019. Investors in bitcoin have long hailed it as an alternative to banks and other traditional financial institutions.

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Pedro Herrera, Head of Research at DappRadar, stated that it is evident that the NFT market has no correlation to the capital and cryptocurrency sectors. They continue to be mostly affected since blue-chips have established themselves as the norm in this developing market and as a result produce their own externalities. analogous to how art responds to economic hardship. On the other hand, it's also crucial to remember that the teams driving blue-chip companies are developing into top web3 brands, making them vulnerable to additional systemic dangers.

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Yet, not all digital tokens are succeeding. From the beginning of March, the overall volume of NFT trading has plummeted by 51%, and revenues have decreased by 15.88%. Due to stablecoin volatility, NFT traders are less active; on Saturday, there were the fewest traders since November 2021 and the fewest traders overall since 2023.