The latest data from DappRadar shows that the recent downfall of Silicon Valley Bank and Circle’s USDC de-peg ended the hype around the non-fungible tokens (NFTs) while increasing activity in the Decentralized Finance (DeFi) space.
The data indicate that DeFi transaction volume reached $59 billion last weekend across all protocols, while the NFT market saw the lowest number of traders since September 2021.
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Last Saturday, after Silicon Valley Bank collapsed and USDC lost its dollar peg, the Total Value Locked in DeFi dropped from $79 billion to $71 billion, representing a decline of 9.5%. Further, the number of transactions increased by 22% from 1.2 million to $1.5 million.
However, after USDC issuer Circle disclosed that it had recovered the funds stuck in the collapsed bank on Monday, the DeFi market stabilized, causing a 13% increase in Total Value Locked, which skyrocketed to $81 billion.
Dappradar also noted an increase in unique active wallets interacting with various DeFi protocols. Those wallets grew from 421,013 to 477,095.
Before Silicon Valley Bank crashed, Uniswap’s count of unique active wallets was 54,123. By Monday, it had increased to 67,324. The exchange’s trading volume also increased by 96%, from $7.3 billion to $14.5 million.
Meanwhile, 1inch Network posted a 305% surge in its trading volume, growing from $860 million to $3.26 billion over the past weekend. Its unique active wallet count also increased from 21,600 to 24,200.
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In recent weeks, the NFT market has been showing signs of recovery, but it appears like the current US banking crisis might have halted the progress. Since the start of this month, the NFT market has only posted $158 million in total trading volume.
In addition, the number of active traders has also reduced to 12,000. On top of that, the NFT market recorded just 33,100 transactions last Saturday, marking the lowest number of trades in a single day this year.
It remains to be seen whether the much anticipated Blur ‘season 2’ token airdrop will help boost activity in the NFT market.