The non-fungible token (NFT) market is showing unmistakable signs of a breakthrough in July 2020, with art-related digital collectibles accounting for a staggering 71% of all NFT trading volume through mid-July. The surge comes as the broader cryptocurrency market experiences renewed enthusiasm, with Bitcoin holding steady above $9,200 and Ethereum trading at $239.60.
TL;DR
- Art-related NFTs represent 71% of total NFT trading volume through mid-July 2020
- The NFT market is entering a significant growth phase, led by gaming and collectible categories
- Ethereum at $239.60 continues to serve as the primary infrastructure for NFT minting and trading
- DeFi total value locked hits all-time high of $2.29 billion, boosting broader crypto ecosystem sentiment
- Chainlink (LINK) surges 35% in seven days, reflecting growing interest in blockchain utility tokens
Digital Art Leads the Charge
The dominance of art-related NFTs in the current market landscape marks a pivotal shift in how digital ownership is perceived. While gaming and collectibles have historically driven NFT transaction counts, the art category has now captured the lion’s share of total trading volume. Analysts note that since July 2020, the most exchanged NFTs belong to the Games and Collectible categories when measured by transaction count, but art-related tokens command significantly higher average sale prices.
The trend is particularly notable because it suggests that NFTs are beginning to attract not just crypto-native collectors but also traditional art enthusiasts exploring blockchain-based provenance and ownership. Platforms built on Ethereum continue to dominate the space, leveraging the network’s robust smart contract capabilities and established user base.
Ethereum Infrastructure Powers the Boom
Ethereum’s role as the backbone of the NFT ecosystem cannot be overstated. At $239.60 on July 13, ETH has maintained a stable price floor that keeps gas fees manageable for creators and collectors alike. The network processes the vast majority of NFT transactions, from CryptoKitties to emerging digital art platforms. However, the broader market data tells an interesting story about shifting capital flows.
According to Kraken’s daily market report for July 13, total trading volume across all markets reached $204.3 million, a 44% increase from the previous week. Strikingly, Bitcoin accounted for only 37% of crypto trading volume, with Ethereum capturing 14%, Chainlink 13%, Tezos 8.2%, and Tether 6.2%. This diversification suggests that capital is flowing beyond Bitcoin into the ecosystem tokens that power decentralized applications, including NFT platforms.
DeFi and NFTs: Parallel Growth Trajectories
The NFT market’s expansion is occurring alongside a historic run in decentralized finance. As of July 12, 2020, the total value locked in DeFi protocols reached an all-time high of $2.29 billion, a milestone that underscores the broader maturation of the Ethereum ecosystem. The DeFi boom has brought increased attention and liquidity to Ethereum, which indirectly benefits the NFT space by expanding the pool of ETH-denominated purchasing power.
Chainlink’s remarkable performance further illustrates this trend. The oracle network’s LINK token surged 35.37% over seven days to reach $7.18, with Google searches for Chainlink hitting an all-time high on July 13. While LINK is primarily associated with DeFi price feeds, its rise signals growing mainstream curiosity about blockchain utility tokens, a category that overlaps significantly with NFT infrastructure projects.
Gaming and Collectibles Set the Stage
Beyond the art world, gaming-related NFTs are laying the groundwork for mass adoption. Blockchain-based games that incorporate tradable in-game assets have been among the earliest and most consistent use cases for non-fungible tokens. The Games and Collectibles categories continue to lead in raw transaction volume, providing the network effects and user familiarity that will eventually support more complex digital ownership models.
The market also saw notable movements in individual tokens. Orchid (OXT) gained 14% over the day, while Quantum (QTUM) added 8.1%. Meanwhile, Dogecoin experienced a roller coaster, dropping 13% and losing half of its recent gains, a reminder that speculative enthusiasm can cut both ways in the crypto market.
Why This Matters
The convergence of NFT market growth, DeFi expansion, and diversifying crypto trading volumes in July 2020 represents a critical inflection point for digital assets. With art-related NFTs commanding 71% of trading volume, the creative economy is emerging as a legitimate use case for blockchain technology, one that extends far beyond financial speculation. As Ethereum continues to serve as the foundational layer for both DeFi and NFTs, the network’s growing ecosystem effects create a virtuous cycle where each sector reinforces the other. For investors, creators, and collectors, the message is clear: digital ownership is no longer a niche experiment but a rapidly maturing market with real economic weight behind it.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions. Cryptocurrency markets are highly volatile and past performance does not guarantee future results.