Things change fast in the cryptocurrency industry. In the span of seven days, the market shifted completely, with the sentiment escaping the fear zone. The total capitalization also soared, adding a whopping $165 billion in the process. But what happened? Well, let’s dive in.

Silicon Valley Bank's parent company SVB Financial Group (SIVB) has filed for Chapter 11 bankruptcy protection.

Silicon Valley Bank's parent company SVB Financial Group (SIVB) has filed for Chapter 11 bankruptcy protection.

Silicon Valley Bank has officially filed for Chapter 11 bankruptcy in New York, according to market sources.

Below, we’ll look at a few data points that explain what happened over the weekend and what could be in store for crypto in the near future.

Making sense of what was happening over the weekend.

Nonfungible token (NFT) trading volumes took a massive beating following the collapse of Silicon Valley Bank (SVB) last week as traders fled the markets fearing the repercussions of a major United States bank going under. According to a March 16 report from data aggregation platform DappRadar, NFT trading volumes were hovering between $68 million to $74 million in the lead-up to SVB’s collapse on March 10, then fell to $36 million on March 12. The dip was accompanied by a 27.9% drop in daily NFT sales count between March 9 to March 11. (Cointelegraph)

Here’s a simple explanation to the differences between the collapse of SVB and the 2008 Financial Crisis. The biggest risk for SVB lies in its high concentration in the technology industry.

Silicon Valley Bank’s (SVB) collapse has had a “limited impact” on the European Union but authorities must still “stay alert” to events as they unfold, European Commissioner Mairead McGuinness has said. Despite McGuinness’ reassuring remarks, stocks of Europe’s largest banks still plunged by as much as 10% on March 15.

The United States’ Federal Deposit Insurance Corporation (FDIC) has reportedly asked potential rescuers of some failed U.S. banks to not support any crypto services.