For the Love of the Game

(Market Commentary)

Banks, regulatory bodies, and financial institutions. The news has been coming fast and furious on multiple fronts since Friday, following the collapse of Silicon Valley Bank, Signature Bank, and Silvergate Bank. 

One might expect the NFT markets to react strongly, so let’s take a look and see how the past few days played out.

Whether spooked by one of crypto’s favorite stablecoins, USDC, depegging from the dollar, (along with Coinbase pausing USDC trading), or being worried about deeper financial issues in the crypto industry, NFT traders mostly decided to sit on the sidelines this past weekend. 

The Global Sales Volume Index reflects that March 11th saw the 3rd fewest total NFT transactions so far this year. 

March 11th saw the 3rd fewest NFT transactions of the year – Source

As of Monday, USDC repegged to $1 USD, and trading of the stablecoin resumed on Coinbase. 

Source

The Forkast 500 NFT Index, which tracks the performance of the global multi-chain economy, reflects that the overall NFT market is down less than 2.3% since Friday. Seemingly, any major impact to NFTs has been avoided.

Source

This doesn’t mean there were no casualties from the tumultuous weekend in banking and crypto. Moonbirds had their wings clipped and saw their floor price fall to just above 4 ETH on Sunday. Kevin Rose’s passion project disclosed that they held cash at Silicon Valley Bank, but failed to clarify how much. In a space where transparency is valued, it’s obvious that this was the catalyst for the sell-off.

Source

Moonbirds floor price – Source

The weekend slowdown ushered in discounted NFTs almost across the entire NFT space. With the US government now guaranteeing depositors money at Silicon Valley Bank, traders regained their confidence in NFTs, (and their ability to cash out) and have been buying up some attractively priced collectibles for some much-needed jpeg therapy.  

Source

Forkast 500 NFT Index – Source

The general NFT markets look rather resilient following the scare of last week, but most would agree, there’s probably more turmoil to come. The true test for how important some NFT projects really are has arrived, and we’ll soon find out if holders can weather the sustained storm that is now on our shores.

MEGA GMs

— Yehudah Petscher

News Headlines

⚡️Meta ends support for NFTs on Facebook and Instagram.

⚡️Car maker, Nissan racing to NFTs with the filing of 4 new trademarks

⚡️Close to 20 crypto games coming to Fortnite’s Epic Games’ store

⚡️Animoca Brands and Planet Hollywood launching new NFT Club in LA

⚡️NFT-related complaints skyrocketed in China last year

⚡️Digital art gallery opened in South Carolina by iconic NFT artist Beeple

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