TLDR
- NFT market sales had their second-best month of the year in July, bringing in more than $574 million.
- Ethereum was the top chain for sales, with Pudgy Penguins and CryptoPunks as the top collections of the month.
- The total market cap of the NFT market is currently over % $7 billion, but was nearly $8 billion before the ETH price started to fall.
With so much regulatory news, good things happening for the industry, and DeFi popping off and closing in on all-time highs, no one has really been talking about the NFT market. But that changed with last month’s numbers. July turned out to be a scorching month for the NFT market, and we’re not just talking about the summer weather.
Non-fungible token sales exploded to more than $574 million according to the website CryptoSlam, marking the second-highest monthly volume of the year. The NFT space has been through quite the rollercoaster over the past couple of years. After the initial hype died down, many people wrote off digital collectibles as a passing fad.
For crypto newcomers, this resurgence offers valuable lessons about market cycles and the importance of understanding what drives value in digital assets. Ready for all the details? Good. Because it’s time to get after it.
Breaking Down July’s Impressive Numbers
The $574 million figure represents more than just raw sales volume — it reveals changing patterns in how people buy and sell NFTs. While the total number of transactions actually dropped from 5.5 million to 5 million (a 9% decrease), the average sale value climbed to $113.08, reaching its highest point in six months.
The trend suggests something fascinating: buyers are getting pickier and focusing on higher-value assets. Instead of scooping up cheap NFTs in bulk, collectors are making more deliberate, expensive purchases. Think of it like the difference between buying fast fashion versus investing in designer pieces — people are choosing quality over quantity.
The buyer and seller dynamics paint an even clearer picture. Unique buyers dropped to 713,085 (down 17% from June), while unique sellers increased to 405,505 (up 9%). This imbalance suggests market consolidation, where fewer participants are making larger, more strategic purchases.
Ethereum’s Continued Dominance
Even if you’re new to the crypto world, you’ve probably heard of Ethereum — the blockchain that powers most NFT transactions. July reinforced Ethereum’s position as the king of digital collectibles, with Ether-based collections completely dominating the top 10 NFT collections by market capitalization.
Ethereum’s native currency, Ether (ETH), had quite the month itself. The token surged to over $3,900, and ETHA, BlackRock’s ETH ETF, hit $10 billion in AUM. This rally directly influenced the valuations of Ethereum-based NFT collections, creating a rising tide that lifted all boats.
The blockchain recorded $297.6 million in NFT sales during July, marking a 56% growth over 30 days. To put this in perspective, Bitcoin came in second with $77 million, while Polygon rounded out the top three with $61 million.
Star Performers: CryptoPunks and Pudgy Penguins Lead the Pack
According to NFT Price Floor, two collections stood out as the month’s biggest winners: CryptoPunks and Pudgy Penguins. CryptoPunks, often considered the grandfather of NFT profile pictures, led trading volume with over $75 million in total value traded over 30 days. These pixelated characters continue to command respect and high prices in the NFT world.
Pudgy Penguins actually outperformed the legendary CryptoPunks in terms of growth. The adorable penguin collection saw a remarkable 48% increase in floor prices during July. Floor price, by the way, refers to the cheapest available NFT in a collection — think of it as the entry-level price to join that particular club.
This performance eclipsed other well-known “blue-chip” collections like Bored Ape Yacht Club (BAYC) or Mutant Ape Yacht Club (MAYC). For context, blue-chip NFTs are considered the most established and valuable collections, similar to how blue-chip stocks represent stable, high-quality companies.
NFT Sales and the Rest of the Market
If you’re just starting to explore the crypto space, July’s NFT surge offers several important takeaways. First, it demonstrates that digital assets can experience growth even after periods of decline. The NFT market’s recovery from its previous lows shows the value in understanding market cycles rather than making decisions based on short-term price movements.
Second, the fact that buyers are moving toward higher-value purchases suggests that successful NFT investing requires research and strategy, not just throwing money at the cheapest available options. The most successful participants are those who understand what they’re buying and why certain collections hold value.
The overall NFT market capitalization now sits at over $7.1 billion, with ETH’s drop in price contributing to the short-term decline. However, at one point, before the most recent tariff news, it was sitting right at $8 billion.
The Broader Blockchain Landscape
July’s results also highlighted the multi-chain nature of the NFT ecosystem. While Ethereum dominated, other blockchains showed interesting patterns.
Cardano displayed the most growth at 102%, while Solana posted modest 8% gains. However, not every blockchain experienced positive momentum — Polygon’s sales volume fell 51.1% from the previous month, and BNB Chain decreased by 54%.
These variations remind newcomers that the crypto space includes multiple competing platforms, each with its own strengths, weaknesses, and communities. Success in one area doesn’t guarantee success across the board, which is why diversification and research remain crucial.
NFT Lessons for New Investors
July’s NFT market surge provides valuable insights for anyone considering entering the digital asset space. The market’s recovery demonstrates resilience and continued interest in digital ownership concepts. However, the shift of buyers toward higher-value purchases and fewer overall participants suggests that success requires education, patience, and strategic thinking.
For new users, the key takeaway isn’t necessarily to rush into NFT purchases, but rather to understand how these markets work and what drives value. Also, NFTs aren’t dead. They are a completely different market.
Comparing crypto to NFTs is like comparing US stocks to FOREX. It’s an apples-and-oranges kind of thing. Factor in different popular collections being housed on different blockchains, and we’re looking at an asset class that’s completely unique. While we don’t report on this stuff often, it’s still fun to watch an emerging market within our favorite emerging market.
About the Author
