<p>The cryptocurrency market always spins with both good and bad news, the non-fungible token field is not an exception. Although legendary names keep engaging themselves with NFTs by introducing collections like what the Starbucks coffee brand is doing recently, the overall performance of these digital assets is not as good as expected. Since the big boom at the end of 2021 and the beginning of 2022, NFTs’ global sales volume, in fact, experienced a serious downswing. Meanwhile, some iconic NFT collections fell harshly in value which prompted controversial questions about their long-lasting viability. There must have been various possible explanations for the phenomenon and advice for NFTs lovers. Let’s find out with <a href="https://www.builder.news/" alt="Builder.news" title="Builder.news" target="_blank" rel="" class="">Builder.news</a>.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3410dde771bfa8e6023f659fee92.jpg" alt="NFT market plunge" title="NFT market plunge and reasons" width="600" height="334"></p><h2>NFT statistics saw drastic downswings</h2><p>Sales of NFTs surged at the beginning of the year, unfortunately, the market's negative tendencies, which were more severe in the second week of May, did little to increase the amount of NFT projects that were sold in the next months. August has become the month with the lowest NFT trading volume this year and a whole year back. If this trend continues we will see more bleeding in the market, many people will lose interest and leave the NFTs market until something new comes along and brings a new wave of market participation.</p><p>All areas of the NFT market are seeing a significant drop. According to DappRadar, a top-notch reporting and tracking Dapp, the emerging Solana-based marketplace - <a href="https://www.builder.news/crypto-insights/magic-eden-more-than-just-an-nft-marketplace" alt="Magic Eden - More than just an NFT marketplace" title="Magic Eden - More than just an NFT marketplace" target="_blank" rel="" class="">Magic Eden</a> had a volume on August 30th was $2.76M, which was showing a drastic plunge from $7.04M in May 2022. It unmistakably demonstrates a volume drop of roughly 59%.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3410dde778b7a8e6023f659fee92.jpg" alt="Magic Eden NFT trading volume on DappRadar" title="Magic Eden NFT trading volume comparison" width="600" height="634"></p><p>The biggest NFT marketplace - <a href="https://www.builder.news/crypto-insights/how-to-use-opensea" alt="How to use OpenSea NFT marketplace" title="An ultimate guide on how to use OpenSea NFT marketplace" target="_blank" rel="" class="">OpenSea</a> showed the same decreasing trend as its rising rival where trading volume dropped from $34.37M to $12.31M in 4 months between May and August 2022.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3410dde77c8ba8e6023f659fee92.jpg" alt="OpenSea NFT trading volume comparison on DappRadar" title="OpenSea NFT trading volume comparison" width="600" height="632"></p><p>The negative market signals are applicable to other popular NFT marketplaces such as LooksRare. The volume of LooksRare in August 2022 was $13.51 million, down from $30.55 million in July 2022 exhibiting a loss of about 56%.</p><p><em><strong>&gt;&gt;&gt; Read more:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/5-questions-about-the-merge-impact-on-nfts-Su6fH" alt="The merge impacts on NFTs" title="5 questions about The Merge impact on NFTs" target="_blank" rel="" class=""><em><strong>5 questions about The Merge impact on NFTs</strong></em></a></p><h2>Feasible explanations for the down in NFTs trading and value</h2><h3>Well awareness of scammers</h3><p>There are many dubious blockchain ventures, but the <a href="https://www.builder.news/sub-category/nft" alt="NFTs updates and insights on Builder.news" title="NFTs updates and insights" target="_blank" rel="" class="">NFT sector</a> is especially rife with fraudulent practices. The fact that shady developers selling basic assets on marketplaces makes up a sizable chunk of the NFT market. Given the relative simplicity of putting up a website and selling false works of art or sports memorabilia, this presented a golden opportunity for scammers. Additionally, the market is reacting appropriately. One of the main causes of the price decline's sharp decline was the lackluster response to dubious NFT market operations. People are just not using these fundamental markets, and the market is not growing.</p><p><em><strong>&gt;&gt;&gt; Check out:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/top-nft-scams-and-how-to-spot-them-hOWve" alt="NFT scam" title="Top NFT scams and how to spot them" target="_blank" rel="" class=""><em><strong>Top NFT scams and how to spot them</strong></em></a></p><h3>Massive cryptocurrency sell-off</h3><p>According to CoinMarketCap, the worldwide cryptocurrency market has decreased from $1.02 trillion to $970.03 billion, a 15% decline since January 2022. Recently, all of the main cryptocurrencies have been trading in the red, putting even long-term investors to the test. The floor price of NFTs was directly impacted when the price of Ethereum fell by more than 50%.</p><h3>NFTs' lack of distinct use cases</h3><p>NFTs' key selling point is their practical use. Everything that is sold on a marketplace can subsequently be sold again. Even though it works fantastically for things like digital art, it is not particularly helpful for digital assets like footwear. They cannot be used in the way physical shoes be used once you sell them to others. It is difficult to imagine how NFTs can ever be valuable because there are no obvious use cases for them in the actual world. Because of this, almost all widely used NFTs are works of digital art. Because of this, almost all widely used NFTs are works of digital art. In the actual world, it is the only thing that makes sense. Furthermore, while controlled markets may contribute to the rise in the value of NFTs, they won't be worth anything if the blockchain project at its core fails.</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3410dde78103a8e6023f659fee92.jpg" alt="NFT use cases" title="NFT use cases" width="600" height="400"></p><p><em><strong>&gt;&gt;&gt; Find out:&nbsp;</strong></em><a href="https://www.builder.news/crypto-insights/decode-the-intrinsic-values-of-nfts-UNJLg" alt="NFT intrinsic values" title="Decode the intrinsic values of NFTs" target="_blank" rel="" class=""><em><strong>Decode the intrinsic values of NFTs</strong></em></a></p><h2>What way should NFT investors go?</h2><p>Before finding the possible solutions to the NFT fall in values and overall volumes, it is indispensable to clear out the question: “Whether declined NFT volumes mean negative?”. It does sound negative, however, it opens more opportunities for investors rather than giving them a chance to quit the market.</p><p>To experienced investors, it is a common practice in this cryptocurrency market that when prices go down, they tend to switch their investing strategies to different approaches since they show no interest in waiting for the profitable price again (not mentioning top valuable NFT collections such as <a href="https://www.builder.news/crypto-insights/legendary-nft-collection-bored-ape-yacht-club" alt="Bored Ape Yacht Club - The legendary NFT collection of all time " title="Bored Ape Yacht Club - The legendary NFT collection of all time " target="_blank" rel="" class="">BAYC</a>, <a href="https://www.builder.news/crypto-insights/cryptopunks-nft" alt="CryptoPunks NFT - Will the glory that started in 2021 last forever?" title="CryptoPunks NFT - Will the glory that started in 2021 last forever?" target="_blank" rel="" class="">CryptoPunks</a>, <a href="https://www.builder.news/crypto-insights/moonbirds-nft" alt="Moonbirds NFT: Owls don't sleep" title="Moonbirds NFT: Owls don't sleep" target="_blank" rel="" class="">Moonbirds</a>, Doodles,...).</p><p class="prosemirror-p-center"><img src="https://cdn.builder.news/news/11ed3410dde784c0a8e6023f659fee92.jpg" alt="NFT" title="NFT" width="600" height="400"></p><p>This strategy, yet, will be true for investors who have enough experience in the market, which is not available to market newcomers. However, either degens or safe investors should consider the current NFT market symptom a good time to take a rest and earn more insights on new hidden gems. The collections that perform well during the bear season will be extraordinary assets for investors to thrive and generate more profits.</p><p>Also, this time is regarded as a hatching period for the collections to create new trends. Investors, of course, do not want themselves to be late. So, why do not take this time to conduct research, cultivate knowledge and get ready for what’s coming next? Again, it is not easy to x100 profits from NFTs anymore cause there are too many introductions to the market. Safe steps might take time, however, it is worth the wait.</p><div class="pr-block-special"><strong>Disclaimer:</strong><br>This article is intended for and only to be used for reference purposes only. No such information provided constitutes advice or a recommendation that any investment or trading strategy is suitable for any specific name.</div>

Is the NFT market performing well in terms of trading volumes? What should investors do when there is an overall decrease in the values of NFTs? Check out now!

What does the recent NFTs market plunge mean to investors?