Ethereum News Today: NFT Market Cap Surges 23% in 24 Hours Driven by Ethereum Price Increase

The non-fungible token (NFT) market, which has been in a state of decline for some time, is showing signs of recovery as daily capitalization and trading volumes surge. In a surprising turnaround, the NFT sector added over $1 billion in market capitalization within just 24 hours, driven by rising Ethereum prices and renewed cultural interest.

According to data from a crypto analytics platform, the NFT market cap jumped from $5.1 billion to $6.3 billion in a single day, reflecting a sharp 23% increase. Daily trading volume saw an even more dramatic spike, rising by 287% to $37.4 million. This sudden burst of activity has sparked speculation across the crypto ecosystem that an NFT revival - possibly the beginning of a new cycle - is underway.

Among the standout performers were legacy collections like CryptoPunks and Pudgy Penguins. CryptoPunks saw a 16% jump in floor price, reaching 47.5 ETH - approximately $179,000 - amid $14 million in sales volume over the past 24 hours. Pudgy Penguins, known for their cultural virality and recent expansion into toy licensing, also surged, with floor prices climbing 15% to 16.6 ETH. The collection registered $5.7 million in trading volume and $3.2 million in daily sales. The movement marks a clear return of interest to established blue-chip NFT projects.

Other prominent Ethereum-based collections also gained traction. Infinex Patrons and Bored Ape Yacht Club saw floor price increases above 9%, signaling broader market momentum beyond a few isolated projects. A particularly notable outlier was the ultra-exclusive YOU THE REAL MVP collection from Memeland - a 420-piece drop that recorded a staggering 1,280% spike in floor price, reaching 69 ETH.

The sudden NFT surge is happening against the backdrop of Ethereum’s recent bullish performance. ETH has climbed over 55% in the past month, touching $3,814 over the weekend—its highest price since December 2023 - before a slight retreat on Monday. Yat Siu, chairman of a Web3 investment giant, drew a direct parallel between ETH performance and NFT market activity, noting that the previous NFT bull cycle in late 2021 also coincided with Ethereum’s price surge. "If NFTs on ETH roar back, we will reach new all-time highs beyond the pure financial plays," he posted on social media.

Other market observers suggested that new institutional interest in Ethereum - especially as it gets increasingly integrated into corporate treasuries - could be indirectly driving NFT revival, as ETH-priced assets become more appealing amid rising demand. Jason Yanowitz, co-founder of a blockchain media company, speculated that the activity could hint at upcoming treasury-based NFT investment vehicles. "NFTs are moving like there are NFT treasury vehicles on the horizon," he commented, suggesting a return of structured financial products tied to NFT performance.

Beyond pure speculation, analysts are emphasizing the cultural foundations of NFTs as a key driver of their long-term value proposition. Unlike fungible tokens or financialized altcoins, NFTs are often viewed as markers of identity, community, and digital ownership. "NFTs are the backbone of the Ethereum cultural economy," said Siu. "Much more than just financial, it’s about culture, status, and ultimately belonging." This narrative may be regaining momentum as Web3-native social platforms, metaverse experiences, and even gaming applications seek to re-integrate NFTs as badges of participation and community affiliation.

The NFT market has been in a prolonged downturn since peaking in early 2022, when collections like Bored Ape Yacht Club and Otherside dominated headlines with multi-million dollar sales. Monthly volumes have collapsed from highs of over $4 billion in early 2022 to under $500 million earlier this year. Speculation-driven enthusiasm evaporated as broader macroeconomic conditions turned bearish, and a series of scandals - including the collapse of FTX and fraud investigations involving NFT founders - further dampened trust in the space.

However, 2024 saw the emergence of niche NFT use cases, including ticketing, identity, gaming assets, and brand loyalty programs. While these did not ignite a major bull run, they helped preserve developer momentum and maintain a base layer of engagement from committed communities.

While it’s too early to call this a full-fledged NFT bull run, the current price action and trading volumes show a marked departure from the stagnation of previous months. Analysts note that sustained upward movement in Ethereum prices, coupled with broader crypto legislative clarity - such as the recent GENIUS Act - may help reinvigorate digital asset markets across the board. Meanwhile, infrastructure improvements such as the growth of Ethereum Layer 2s, integration with major social platforms, and more user-friendly wallets may create an environment conducive to mass adoption of NFTs beyond just speculative traders.

The next few weeks will be crucial in determining whether this surge is a short-lived reaction or a foundation for a longer-term rebound.