Following the closure of the California Department of Financial Protection and Innovation by Silicon Valley Bank earlier this month, Startups are worried about their future. Likewise, the non-fungible token (NFT) space is struggling to understand the banking crisis.

according to a report by DappRadar on Thursday, NFT trading volume is down 51% since early March. Sales have also taken a hit, falling nearly 16%.

NFT traders are also becoming less active as market participants increasingly question the stability of stablecoins. On March 11th, the day after Federal Deposit Insurance Corp. took control of Silicon Valley Bank, the number of traders was around 12,000, a number not seen since November 2021. Individual NFT trades on the day totaled 33,112 – the lowest daily number in 2023.

also read: Mark Cuban has a ‘big question’ after the US government bailout of SVB, Signature Bank Depositors

Shortly after the news of the collapse of the SVB provethe NFT collective behind the popular collection moon birds, informed that the company had invested some funds in the bank. Moonbirds lost about 18% of its value over the weekend.

DappRadar also noted that several top-tier NFTs have remained strong during the recent fiscal fiasco. Floor prices of blue chip NFT issuers Yuga Laboratoriesincluding that of Bored Ape Yacht Club (BAYC) and CryptoPunks, slightly submerged. After a small dip below $100,000 on March 11, NFTs quickly recovered.

continue reading: The regulator knew days before the SVB collapsed that $620 billion in losses lurked in the financial system

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