The non-fungible token market is experiencing remarkable growth, with its market capitalization surpassing the $9.4 billion mark for the first time since January 2025. This surge coincides with a substantial increase in daily trading volume, which has recently surpassed $25 million in recent days. In this article, we delve into the factors driving this recent NFT market surge. The recent milestone on the non-fungible token (NFT) market is confirmed by nftpricefloor.com, an on-chain market data aggregator that tracks over 1,700 NFT collections from multiple blockchain networks. The latest figure for the market capitalization signifies a return to levels last seen in January 2025, shortly after the November 2024 bull run peaked and subsequently subsided. This surge is being fueled by several key factors: the growing popularity of decentralized finance (DeFi), increasing institutional investment, and positive regulatory developments. 1. Crypto Market Surge: The NFT market’s performance is closely linked to the broader cryptocurrency market, as users often require crypto assets like Ethereum or Bitcoin to trade NFTs. This correlation has been evident in recent days, where Bitcoin continues its upward trajectory and is now trading above $120,000. Ethereum, meanwhile, is close to its all-time high (ATH) of $4,800. 2. Institutional Investment: Increased interest from institutional investors has been another significant driver behind the market’s recent surge, contributing to a more stable and liquid NFT ecosystem. The global adoption of NFTs continues to expand rapidly, offering new opportunities for users to engage with the technology. This factor further bolsters the market and its potential for long-term growth. 3. Legal Clarity: The increasing clarity surrounding regulatory frameworks for NFTs has also contributed to the market’s upward trend. Legal clarity helps foster investor confidence and encourages participation in the burgeoning NFT sector, contributing to the continued momentum.