• The California Department of Financial Protection and Innovation shut down Silicon Valley Bank earlier this month, causing unease among startups and the non-fungible token (NFT) space.
• NFT trading volume has dropped by 51% since the beginning of March, with sales count falling by nearly 16%.
• NFT traders are becoming less active as market participants question the stability of stablecoins.
• Proof, the NFT collective behind the popular collection Moonbirds, shared that the company had some funds invested in the bank, causing Moonbirds to lose about 18% of its value over the weekend.
• Despite the fiscal fiasco, several top-tier NFTs have remained strong, including blue-chip NFT issuer Yuga Labs, Bored Ape Yacht Club (BAYC), and CryptoPunks.

The article reports on the negative impact of the shutdown of Silicon Valley Bank on the NFT space, with trading volume and sales count dropping significantly. NFT traders are also becoming less active due to concerns about the stability of stablecoins. However, the article also notes that some top-tier NFTs have remained strong despite the fiscal fiasco. Overall, the sentiment of the article is negative.