July marked a notable month for the crypto market, as big investors began actively shifting their capital into various sectors of Web3, including tokens, DeFi, and NFTs.
Tokens Set the Tone for the Crypto Market Rally
The crypto market added more than $200 billion in July, nearing the $4 trillion mark.
Bitcoin led the way, hitting a new all-time high of $123,000, spurred by ETF inflows. Ethereum also saw a remarkable increase of over 50%, trading above $3,900.
Layer-1 networks and DeFi tokens across the board gained 25–30%, indicating that large investors were diversifying their bets beyond Bitcoin.
DeFi Quietly Becomes a Smart Money Magnet
Alongside price increases, DeFi experienced one of its strongest months since 2022. According to DeFiLlama, the total value locked reached $193 billion, marking a 65% increase from earlier in the quarter.
Ethereum dominated with $84.7 billion, while other chains like Solana, Avalanche, and SUI also witnessed double-digit gains in DeFi. Capital flowed into restaking platforms, lending protocols, and cross-chain yield farms, signaling large investors are preparing for long-term growth in DeFi.
NFTs Attract Big Buyers as Retail Pulls Back
Meanwhile, in the NFT segment, a surprising comeback occurred with sales volumes rising 47% to $574 million in July. However, the number of unique buyers dropped by 17%, while unique sellers increased, showing that smart money, rather than casual traders, was driving market activity.
Ethereum-based collections, such as CryptoPunks and Pudgy Penguins, continued to lead in sales, with significant price increases in notable collections.
Overall, July proved to be a pivotal month for the entire crypto market, where significant investments in tokens, DeFi, and NFTs demonstrated not only price growth but also complex capital movement trends within the capitalization.
