After a prolonged downturn, the NFT market has regained momentum, reaching a capitalization of $28.4 billion, according to CoinMarketCap. This marks a 40% jump from July, fueled largely by Ethereum’s rally past $4,700.
Because many NFTs are priced in ETH, the cryptocurrency’s appreciation has magnified valuations across major collections. Analysts note this linkage underscores Ethereum’s role as the backbone of digital collectibles, amplifying both gains and risks.
The renewed strength comes after NFTs’ meteoric rise in 2021 and subsequent collapse, which left many investors questioning the sector’s long-term viability. Recent data, however, suggest a potential structural rebound.
Iconic Collections Lead the Charge
Legacy collections continue to anchor the market’s recovery:
- CryptoPunks remain the top collection with a market capitalization of $2.4 billion.
- Bored Ape Yacht Club (BAYC) trails closely, but faces fresh competition.
- Pudgy Penguins recently outpaced BAYC in weekly volume, posting $8.7 million compared to BAYC’s $6.3 million.
This resurgence has given long-term holders the chance to recover losses accumulated during the downturn. Some analysts believe the price spike could spur profit-taking among investors who purchased during the 2021 peak.
Sales data reinforce the momentum: NFT transactions in July reached $574 million, the second-highest monthly total in 2025 and up 47.6% from June. While the number of individual trades dipped to 5 million, the average sale price jumped to $113, the highest in six months.
These figures indicate a consolidation toward higher-value assets, suggesting buyers are prioritizing scarcity and prestige over sheer transaction volume.
Signs of Sustainable Revival
The market’s recovery is supported not only by rising Ethereum valuations but also by evidence of healthier trading patterns. July’s sales momentum and elevated price levels reflect a shift from speculative flipping to more targeted investment.
Broader trends to watch:
- ETH dominance: Ethereum-based NFTs continue to capture the bulk of activity.
- Higher price points: Buyers are increasingly focusing on premium collections.
- Market confidence: Sustained volumes hint at more durable demand.
While risks remain — particularly if Ethereum’s rally falters — the sector’s rebound has rekindled optimism. With iconic collections regaining value and new entrants gaining traction, NFTs appear poised for a more measured, utility-driven phase of growth in 2025.
