NFT Market Surpasses $2B Mark as Blue-Chip Collections Lead Rally

The NFT market has seen a significant rebound, surpassing the $2 billion mark for the first time since early Q1. This growth is largely driven by blue-chip collections such as Bored Ape Yacht Club and Pudgy Penguins.

Bored Ape Yacht Club floors have risen 81% over the past month, while Pudgy Penguins has broken above 5 Ethereum (ETH) and gained more than 20% on the week. However, global NFT sales have fallen to $175 million in April from $304 million in February, with a significant decline in active users and total transactions.

The surge is also attributed to the success of Telegram-native collectibles on the TON blockchain, which pulled $39.8 million in NFT trading volume in March. Telegram Gifts accounted for $23.09 million, or 58% of TON's NFT volume, followed by Telegram Numbers and Telegram Usernames.

Analysts caution that wash trading still represents about half of total NFT volume, with aggregate trading profits remaining negative. The sector's prior cycle peaked above $15 billion in 2021 and 2022, but the current market cap is well below those highs at around $2 billion.