Figma Plunges 27.38% as $3.89B Trading Volume Ranks 16th Amid Market Volatility

On August 4, 2025, Figma (FIG) plunged 27.38% with a trading volume of $3.89 billion, marking a 44.02% decline from the previous day’s activity. The stock ranked 16th in market volume, reflecting heightened volatility amid mixed market sentiment.

Figma, a leader in collaborative design software, has solidified its dominance through real-time cloud-based tools and a freemium model. Founded in 2012 by Dylan Field and Evan Wallace, the company’s browser-centric platform democratized design workflows, enabling 95% of Fortune 500 firms to adopt its solutions. Strategic product expansions like FigJam and AI-integrated tools such as Figma Make and Dev Mode have further strengthened its ecosystem, driving cross-product adoption among 76% of customers.

Despite a failed $20 billion acquisition attempt by Adobe in 2023, Figma’s resilience and innovation have fueled 40% year-over-year revenue growth. Its 2025 IPO valuation exceeded $55 billion, underscoring investor confidence in its market leadership. However, concerns persist regarding AI’s impact on margins and the sustainability of its high valuation relative to early-stage profitability.

The strategy of purchasing the top 500 stocks by daily trading volume and holding them for one day generated a 166.71% return from 2022 to the present, outperforming the benchmark by 137.53%. This highlights the influence of liquidity concentration in volatile markets, where high-volume stocks experience amplified price movements due to institutional and algorithmic trading activity.