Muscle cars are back in a big way.

A 1967 Chevrolet Corvette L88 Coupe, often called the "mythical fish" of cars, was recently sold at auction for a record $3.85 million, the highest price ever paid for a Corvette, CNBC reported.

With only around 20 models ever manufactured, the quality L88 has long been an elusive prize for car fans.

The Corvette's final price was the fourth-highest at the collective car auctions in Scottsdale, Ariz. The event, which ended on Sunday, was the most successful in history for auction company Barrett-Jackson. 

Also at the auction, a 1969 Rebel Convertible Race Car sold for $2.68 million, further showing the rise of muscle cars.

In the world of car collecting, American muscle cars and vintage European sports cars have both been in need of recovery, CNBC reported.

While Ferraris and other European sports models have seen a rise in demand, the market for muscle cars stalled for a while. But things seem to be looking up for the collectible segment.

"I would say that we now have a full recovery in the muscle car segment," McKeel Hagerty, CEO of collectible car insurance company Hagerty, told CNBC. "But I think it's a more rational market this time around."

Ferraris are still big, their popularity showcased at the Scottsdale auctions, where Ferraris were five of the top 10 sellers by price.

A 1958 Ferrari 250 GT California LWB Spyder that sold for $8.8 million from RM Auctions and a 1958 Ferrari 250 GT Cabriolet sold by Gooding for $6.16 million were the two top-selling cars by price.

The popularity of muscle cars unexpectedly boomed in 2005 and 2006 when collectors paid "crazy" prices for so-so vehicles, but today's market has been boosted by higher-quality vehicles and rare models, according to Hagerty.

Buyers from the real estate and construction industry have returned to the collectible market, reinforcing the rise in muscle car sales.

"Those were very strong buyers during the real estate boom and they had exited the market," Hagerty told CNBC. "Now they're back and they're very good buyers."

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