July's NFT Rally: $574M in Sales Marks a Turning Point Amid Shifting Market Dynamics

NFT trading activity reached a fever pitch in July, with the sector clocking $574 million in sales volume—a robust 47.6% surge from June and the second-strongest performance of 2025, trailing only January’s $679 million peak. Despite a modest 9% decline in transaction count, dipping from 5.5 million to 5 million trades, the market displayed a critical shift: the average transaction size ballooned to $113.08, marking a six-month high that signals growing trade quality over quantity.

A Market of Concentrated Buyers and Emboldened Sellers

The buyer-seller dynamics paint an intriguing picture. Unique buyer participation slipped 17% to 713,085 wallets, while seller accounts expanded 9% to reach 405,505—a divergence that underscores increasing consolidation among purchasers and fresh supply injections. This trend reflects a maturing market where serious collectors are accumulating premium assets while new participants enter as liquidity providers.

NFT market capitalization surged dramatically, climbing from $6.6 billion on July 24th to a commanding $8 billion-plus, representing a 21% rally that validates growing institutional and retail conviction in the sector.

Ethereum Maintains Iron Grip While Alternative Chains Splinter

Ethereum’s NFT dominance proved unshakeable, generating $275 million in trading volume—a 56% month-over-month explosion. CryptoPunks ignited the market with $69.2 million in trading intensity, followed by Pudgy Penguins ($55.5 million) and Polygon-native Courtyard NFTs ($23.8 million). Among blue-chip collections, Pudgy Penguins emerged as the clear winner with its floor price climbing 65.44%, substantially outpacing BAYC and MAYC in performance metrics.

The Tale of Two Trends: Winners and Losers

Divergent blockchain fortunes characterized the month. Cardano’s NFT ecosystem exploded upward with a stunning 102% sales increase, demonstrating renewed interest in the platform’s digital collectibles segment. Conversely, Polygon experienced a sharp 51.1% pullback, while BNB Chain contracted even more severely, sinking 54%—suggesting capital rotation away from these ecosystems toward Ethereum and emerging alternative networks.