The NFT market staged a dramatic recovery in July 2025, with total market capitalization surging 94% to $6.6 billion, reversing a year-long downtrend. This resurgence was primarily driven by Ethereum-based collections, with CryptoPunks reclaiming market leadership through a 53% floor price jump and a landmark $5 million sale. Pudgy Penguins contributed significantly with $20 million in weekly trading volume.
Weekly NFT trading volumes spiked 51% to $136 million, indicating revitalized institutional interest. Jason Yanowitz, Co-founder of Blockworks, observed: "NFTs are moving like there are NFT treasury vehicles on the horizon," suggesting structural market shifts. CryptoPunks' floor price rose from 40.9 ETH to 47.5 ETH during the rally, while analysts highlighted their cultural significance. Sara Gherghelas of DappRadar noted: "They’re still the gold standard of Web3 clout... that status is trending."
The growth signals renewed confidence in high-value digital collectibles, with Ethereum maintaining its dominance as the primary settlement layer. Historical patterns suggest potential volatility, but institutional engagement and emerging financial vehicles point toward sustainable momentum for Ethereum-based NFT ecosystems.