NFT Market Cap Surges 94% to $6.6B in July Driven by CryptoPunk $5M Sale and TON Blockchain Growth

The NFT market experienced a dramatic resurgence in July 2025, with the market capitalization surging 94% to $6.6 billion, the highest level since early 2025 after months of consecutive quarterly declines. Weekly trading volumes spiked 51% to $136 million, driven by a 40% jump in average NFT prices to $146, while sales volume rose just 7%, signaling a shift toward high-value assets and the revival of blue-chip collections [1]. A CryptoPunk NFT sold for $5 million, marking a 53% increase in the collection’s floor price and reaffirming its status as a Web3 benchmark. The market’s recovery was anchored by top-tier projects, with Pudgy Penguins outperforming the Bored Ape Yacht Club in market capitalization, posting a 539% floor price increase since its 2021 mint and gaining 7% in the week.

Moonbirds saw a 600% surge in trading volume and a 60% floor price increase following a partnership with Towns and an acquisition by Orange Cap Games. Art Blocks also saw a 156% rise in average sale prices after introducing Collector Profiles and platform upgrades on July 10. Profile picture (PFP) NFTs dominated 37% of total trading volume, outpacing Real-World Assets (11%), while Sports, Music, and Fashion NFTs lagged. The market’s rebound mirrored historical patterns, with PFPs and Art categories leading recoveries through fewer but higher-value trades, a contrast to the volume-driven activity of earlier cycles [1].

Telegram NFTs fueled optimism as Snoop Dogg’s collection generated $12 million in sales within 30 minutes, with TON blockchain’s NFT market cap reaching $200 million. Telegram founder Pavel Durov announced blockchain minting and secondary market capabilities within 21 days, spurring activity like Crystal Eagles’ $100-per-piece sales and Statues of Liberty’s sell-out in under five minutes. Bored Ape Yacht Club’s plans to launch sticker packs on Telegram added credibility to the TON ecosystem, with Pudgy Penguins and Doodles also exploring similar moves. Regulatory clarity further bolstered confidence: SEC Commissioner Hester Peirce confirmed most NFTs, including those with royalty mechanisms, do not qualify as securities. A Ninth Circuit Court ruling affirmed NFTs can be trademarked under the Lanham Act, reinforcing their commercial utility as membership passes and source-identifying assets [1].

The market’s trajectory follows a cyclical pattern, with blue-chip collections stabilizing during downturns and surging upon broader adoption. While Gaming NFTs cooled after a strong Q2, the focus shifted to platforms like Telegram, which now accounts for $8 million in daily NFT trading. Analysts note the current recovery hinges on institutional validation, with legal and regulatory developments critical to sustaining momentum.

Source: [1] [NFT Market Cap Surges to $6.6B in July as CryptoPunk Sells for $5M – Are NFTs Back?] [https://cryptonews.com/news/nft-market-cap-surges-to-6-6b-in-july-as-cryptopunk-sells-for-5m-are-nfts-back/]