NFT Market Explodes in July: Why Ethereum's Surge Is Reshaping the Landscape

The NFT sector witnessed a powerful rebound in July, with trading volume soaring to $574 million—the second-strongest performance of 2025, trailing only January’s record $678.9 million. The month-over-month jump from June’s $388.9 million represented a substantial 47.6% uptick, signaling renewed investor appetite despite broader market headwinds.

Market Structure Shifts: Fewer Buyers, Bigger Bets

While transaction volume declined from 5.5 million to 5 million—a 9% retreat—the average sale price climbed to $113.08, the highest in half a year. This divergence reveals a crucial market dynamic: consolidation. The number of unique buyers shrank 17% to 713,085, while unique sellers expanded 9% to 405,505, suggesting institutional players and serious collectors are increasing position sizes while casual participants exit.

The NFT sector’s total market capitalization expanded to $8 billion, reflecting a robust 21% gain from $6.6 billion measured on July 24.

Ethereum’s Dominance Reflects ETH’s Price Explosion

The surge in Ethereum-based NFT valuations directly correlates with ETH’s exceptional performance. The token vaulted from approximately $2,400 on August 1 to above $3,900—a stunning 62% rally. Currently trading above $3,800, Ethereum’s strength propelled all top 10 NFT collections by market cap into Ethereum’s ecosystem.

CryptoPunks commandeered the top ranking with $69.2 million in 30-day volume, followed by Pudgy Penguins at $55.5 million. The Polygon-based Courtyard collection rounded out the podium at $23.8 million. Pudgy Penguins delivered the most impressive narrative, posting a 65.44% floor price surge that outpaced both CryptoPunks and established blue-chips like the Bored Ape Yacht Club and Mutant Ape Yacht Club.

Blockchain Distribution: Ethereum Pulls Away

Ethereum captured $275.6 million in NFT sales, marking a 56% month-on-month expansion and cementing its dominance. Bitcoin emerged as the second-largest venue with $74.3 million, while Polygon managed $71.6 million despite experiencing a sharp 51.1% monthly contraction.

The blockchain rankings reveal notable disparities in momentum. Cardano posted the most explosive growth at 102%, demonstrating emerging strength in the layer-one space. Solana’s 8% increase suggested steady but unspectacular activity. BNB Chain contracted 54% month-over-month, indicating significant pullback in its NFT ecosystem.

The overall trajectory underscores Ethereum’s gravitational pull in the NFT space, driven by both technological factors and macro asset price movements. As July demonstrated, blockchain ecosystems remain tightly coupled to their native token valuations, creating pronounced ripple effects across collections and trading patterns.