NFT (Non-Fungible Token)

A token representing ownership of a unique asset, typically art, collectibles, or membership.

A non-fungible token is a blockchain-based ownership record for a unique asset. Each NFT has a distinct identifier and is not interchangeable with other tokens, unlike fungible tokens where each unit is identical. The metadata (image, traits, links) is usually stored off-chain on IPFS or a centralized server, with the token referencing it.

The 2021 NFT boom drove speculative trading of PFP collections to multi-billion-dollar valuations. Most of that valuation has unwound. The durable NFT use cases are turning out to be specific: digital collectibles with cultural weight, gaming items with real utility, and on-chain credentials and memberships.