Daily non-fungible token (NFT) trading volumes on OpenSea, the world’s largest nonfungible NFT marketplace, plunged approximately 99 percent from its record high of US$405.75 million on May 1.

According to data from DappRadar, only US$ 5 million worth of NFTs exchanged hands through the platform on 28 August compared to $405.75 million users traded on May 1 when its daily volume reached all-time highs.

Meanwhile, OpenSea’s user and their transactions also drop dramatically, suggesting that the value and interest in these blockchain-based novel digital asset have diminished in recent months as result of crypto winter.

The massive decline in daily volumes of OpenSea comes at a time when it is cutting 20% of its workforce, citing the company’s need to adapt to current market conditions.

“We need to prepare the company for the possibility of a prolonged downturn,” said OpenSea’s CEO Devin Finzer.

The massive decline in NFT trading volumes coincided with drastic drops in value of stocks as investors are selling off risky assets over fears that soaring inflation would force the U.S. Federal Reserve to aggressively raise interest rates and drive the economy into a recession.

NFT’s floor price, the minimum price of an NFT, also down significantly.    

Top collections have also been experiencing severe downturns in both volumes and number of sales. For example, the popular Bored Ape Yacht Club NFTs have experienced a approximately 15% drop in trading volumes in the past 30 days along with a 32% drop in sales.

Its floor price has dropped by 53% to 72.5 ETH on Aug. 28 versus a high of 153.7 ETH on May 1.

Similarly, the floor price of CryptoPunks, another top NFT collection, dropped almost 20% from its July high of 83.72 ETH.

In addition, search volumes related to NFTs have also experienced a severe decline according to report NonFungible.com, a website that tracks the performance of NFT market, as it has dropped to levels seen in September 2021 and roughly 80% from their peak.