The recent collapse of Silicon Valley Bank (SVB) and US dollar currency (USDC) has halted the hype around non-fungible tokens (NFTs) while benefiting activity on decentralized finance (DeFi), a recent DappRadar report revealed.
During the weekend in March. 11-12, DeFi transaction volume exceeds $58 billion across all platforms – while Mar. 11 has the lowest number of active NFT traders since November 2021, according to a DappRadar report.
in March. 11, following the collapse of SVB and the unpegging of USDC, the total value locked (TVL) in DeFi fell to $71.61 billion from $79.28 billion – marking a decline of 9.6%. The number of deals also increased by 23% to 1.6 million from 1.3 million.
After SVB’s USDC reserves were made available to the public in March. On September 13, the DeFi market also stabilized and DeFi TVL led the growth to $81.15 billion, registering a 13% increase.
The number of unique active wallets (UAW) that interact between DeFi protocols increased by 13% between March. March 8 to March. 11, rising to 477,094 from 421,026.
Of all the DeFi protocols, Uniswap (UNI) has become the one that has recorded the largest increase in UAW numbers – while 1inch (1INCH) network wins in terms of trading volume.
Uniswap’s UAW rose to 67,000 in March. 11 from 54,000 in March. 10, representing an increase of 24%. Its trading volume also recorded a 96% increase, growing to $14.4 billion on March 3. 11 from $7.34 billion in March. 10.
On the other hand, the 1-inch network recorded a 304% growth in its trading volume, which rose to $3.46 billion on March 3. 11 of the $855 million recorded in March. 10. The number of UAW exchanges also grew to 24,100 from 21,600 in one day – an increase of 11%.
The NFT market has grown at an impressive rate over the past few months. The NFT field maintained its resilience during the coldest winter in crypto history and managed to fully return to pre-Luna crash levels in February.
However, the NFT field has been hit by the US banking turmoil. NFT trading volume has recorded a 51% decrease since the beginning of March, dropping to 128,000 currently from 156,000 in February.
The number of active NFT traders was recorded at 12,000, the lowest level since November 2021. It also recorded the lowest number of trading in a single day of the year, with 33,112 transactions.
Interestingly, the banking turmoil did not affect the NFT trading volume as much as it did the trader activity. The report justified this discrepancy by saying that Ethereum (ETH) NFT whales continued farming in Blur Season 2.