The non-fungible token market is experiencing a resurgence, with rising prices grabbing attention. However, a closer look at overall activity reveals a more nuanced picture. Bored Ape Yacht Club and Pudgy Penguins are driving the rally, with their floor prices increasing by double digits in recent weeks.

Pudgy Penguins' floor price has surpassed 5 ETH, with a 20% weekly increase, supported by 201 sales and nearly 1,000 ETH in volume over the past seven days. BAYC's floor price has rebounded sharply, rising 81% over the past 30 days. The floor price is a crucial metric, representing the lowest-priced item available in a collection. A rising floor generally indicates increased buyer demand.

Despite these gains, the market's underlying structure tells a different story, with broad participation declining. According to CryptoSlam, global NFT sales fell to approximately $175 million in April, down from $304 million in February. Total transactions and active users also dropped by nearly half. Average sale prices more than doubled month-over-month, from $30.60 in March to $67.38 in April.

This phenomenon can be attributed to a smaller pool of capital concentrating in high-value trades within blue-chip collections, rather than a broad-based demand returning to the market. Within blue-chip collections, demand quality varies. Pudgy Penguins is experiencing relatively high transaction counts alongside rising prices, indicating sustained activity. In contrast, collections like CryptoPunks have recorded similar weekly volume with fewer trades, implying that large transactions are having a significant impact on price.

Broader market signals remain mixed, with wash trading accounting for roughly 50% of total volume and aggregate trading profits remaining negative. This data suggests a market that is stabilizing but not yet expanding, with prices rising but participation falling and activity concentrated in a handful of collections.

The recent rebound in ETH and BTC prices, up 18% and nearly as much, respectively, over the past month, may also be contributing to the perceived NFT-specific rally, with blue-chip collections priced in ETH benefiting from the crypto-wide risk-on move.