• The recent collapse of the Silicon Valley Bank (SVB) and the USD Coin (USDC) de-peg halted the hype around Non-Fungible Tokens (NFTs).
• Defi’s transaction volume exceeded $58B during Mar. 11-12, while Mar. 11 recorded least active NFT traders since November 2021.
• Uniswap (UNI) and 1inch Network (1INCH) recorded significant increases in Unique Active Wallets (UAW) counts and trading volumes respectively due to the SVB crash and USDC de-peg.
U.S. Banking Turmoil Halts NFT Hype
The recent collapse of the Silicon Valley Bank (SVB) and the USD Coin (USDC) de-peg has led to a halt in Non-Fungible Token (NFT) hype, which had been steadily increasing over the past few months.
DeFi Thrives Amidst U.S. Banking Turmoil
On Mar. 11-12, Defi’s transaction volume exceeded $58B resulting in an increase of 23% from 1.3 million transactions to 1.6 million transactions, according to DappRadar’s report on March 17th 2023 at 11:15 am UTC . After the SVB crash and USDC de-peg, Total Value Locked in DeFi fell 9.6%, however it stabilized after USDC reserves were made available publically on 13th Mar leading to a 13% spike in TVL value up to $81 billion from $71 billion as mentioned in report by DappRadar on March 17th 2023 at 11:14am UTC .
Unique Active Wallets Interacting with DeFi Protocols
The number of unique active wallets interacting between DeFi protocols saw a 13% increase between 8th -11th March growing from 421,026 wallets to 477,094 wallets as reported by DappRadar’s report on March 17th 2023 at 11:14 am UTC . Among all DeFi protocols Uniswap( UNI ) saw highest increase with 24 % growth rate , where its trading volume increased 96% growing from 734 million dollars on 10th march to 14 billion dollars on 11 th march as reported by DappRadar’s report on March 17th 2023 at 11:14 am UTC . Whereas exchange 1inch Network(1INCH ) recorded 304 % increase in its trading volume increasing from 855 million dollars 10 th march to 3 billion 46 million dollars 11 th march , also seeing an increment of 11 % in its UA W count from 21600 users 10 th march to 24100 users out of which 67000 are only for Uniswap .
NFT Market Resilience
The NFT market has been showing a great resilience throughout coldest winter season for crypto history fully recovering all pre Luna crash levels by February 2021 as reported by Dappradar’s reports published earlier this year but after SVB collapse NFT sphere is witnessing some decline with decrease in activity since November 2021 as reported by Dappradar’s report released today .
Conclusion
Despite U S banking turmoil halting NFT hype , Decentralized finance is thriving with increases seen both in Unique active wallet count & Trading volumes with some protocols like Uniswap & 1inch Network recording impressive figures as reported by dappradar’s reports today .