Ethereum’s price reached $4,201.46 on August 9, 2025, marking a 7.84% increase in the previous 24 hours [1]. This surge stands in stark contrast to the broader NFT market, where participation has plummeted. According to data from CryptoSlam, NFT buyers dropped by 89.83% to 73,900, while NFT sellers fell by 91.14% to 42,878 [3]. Total NFT sales declined 11% to $134.9 million, despite Ethereum’s price rally [3].

Ethereum remains the leading blockchain in NFT sales, with $58.5 million in volume, although this represents a 23.43% drop compared to the previous week. Meanwhile, wash trading on the network has fallen by 61.64% to $5.5 million, suggesting reduced speculative activity [3]. Polygon (POL) climbed to second place with $17.8 million in sales, a 56.90% increase, while Bitcoin and BNB Chain also saw shifts in market share [3].

A notable highlight of the week was the sale of CryptoPunks 1021 for 720 ETH ($2,569,908), marking a new high-water mark for the collection [3]. However, the broader CryptoPunks collection saw a 43.68% decline in sales to $11.4 million, with drops in transaction volume, buyers, and sellers [3]. Pudgy Penguins, on the other hand, showed a modest 12.76% recovery, maintaining relative stability amid the downturn [3].

The drop in buyer and seller counts is not limited to Ethereum. Across major blockchains, buyer participation has fallen drastically, with Polygon seeing the largest decline at 97.43%. BNB Chain followed closely with a 95.64% drop, and Bitcoin with 94.41% [3]. These figures underscore a broader trend of reduced activity across the NFT space.

Institutional interest in Ethereum has grown, with over 18 publicly listed firms now holding more than $500 million in ETH each [2]. Arthur Hayes, a prominent figure in the crypto industry, has also re-entered the market by purchasing Ethereum, despite previously forecasting a drop to $3,000 [4]. This institutional and individual re-entry highlights a shift in sentiment, with some analysts noting that 2025 is witnessing a more legitimate and mainstream adoption of crypto compared to earlier cycles [5].

The divergence between Ethereum’s price surge and declining on-chain activity raises questions about the sustainability of the rally. While macroeconomic factors and speculative trading are driving the price upward, the Ethereum network’s core use cases—such as NFTs and DeFi—appear to be losing momentum [3]. This suggests that the current price increase may be driven more by external capital flows than by fundamental improvements in network usage.

As Ethereum continues to climb, the market remains cautious. The decline in network participation highlights the risks of overreliance on speculative sentiment and raises doubts about whether Ethereum can maintain its leadership in the smart contract space [3].

Source:

[1] Cryptocurrency Live News & Updates : Ethereum’s Rally (https://m.economictimes.com/crypto-news-today-live-09-aug-2025/liveblog/123195194.cms) [2] ETHUSDT_531FEB.USD trade ideas (https://www.tradingview.com/symbols/ETHUSDT_531FEB.USD/ideas//page-7/?asset=base) [3] https://en.coinotag.com/ethereum-price-surge-contrasts-with-nft-market-decline-as-participation-drops-significantly/ [4] Arthur Hayes Rebuys ETH Amid Price Rally and Swears … (https://cryptoadventure.com/arthur-hayes-rebuys-eth-amid-price-rally-and-swears-off-profit-taking/) [5] The crypto bros are back: ‘The hubris never really left’ (https://www.straitstimes.com/life/the-crypto-bros-are-back-the-hubris-never-really-left)