NFT Tokens by Market Cap and Volume

NFTs are blockchain-based tokens that are used to represent ownership of an asset. NFT is an acronym that stands for ?non-fungible token?.

In order to better understand the significance of ?non-fungible?, it’s best to compare it with the term ?fungible?. Most tokens that you’ve likely dealt with in the cryptocurrency market are fungible – individual units of the token are interchangeable. Examples of fungible tokens are UNI, MKR and USDC. For example, every UNI token is the same and none of them have any unique properties.

NFTs are non-fungible, which means they are not interchangeable with each other. Each NFT has a unique identifier that distinguishes it from other tokens issued on the same blockchain.

NFTs are used to represent ownership of various items. Most commonly, NFTs represent the ownership of digital items such as photographs, drawings, videos, 3D animations, audio files and video game items. However, NFTs can also be used to represent ownership of ?real-world? assets like physical artworks, real estate and collectibles.

NFTs can be viewed as a digital certificate of ownership that can easily be transferred between different people through blockchain transactions. For example, an artist can create a 3D animation, upload it to the internet, and issue an NFT that’s associated with the animation. Someone who wants to support the artist would buy the NFT and then they would own the private keys associated with the token in their NFT wallet. Later on, the holder can sell the NFT if anyone offers to buy it. And while anyone would be able to view the animation, only one person would hold the associated NFT at any given time.

NFT issuers can also create multiple NFTs that all reference the same item. Let’s take an imaginary card game as an example - you could create 1,000 NFTs that each represent a common trading card, and create only 10 NFTs to represent an ultra rare card.

You can buy and sell NFTs on marketplaces that connect NFT owners with people who are interested in buying them. One example of a popular NFT marketplace is Nifty Gateway, which collaborates with artists to release NFT collections called ?drops?. The NFTs sold through these drops can then be traded among Nifty Gateway users. OpenSea, another popular marketplace, allows users to put their NFTs on sale or even issue their own NFTs.

NFTs are growing in popularity very quickly and we can expect many new NFT platforms entering the market soon.

Fungible cryptocurrencies like BTC or ETH can be sold relatively easily, as there is a huge amount of liquidity in the market. With NFTs, however, the situation is more complicated. Since every NFT is unique, there is a possibility that you won’t be able to find a buyer for your NFT, regardless of how much you’ve paid for it. So, keep that in mind if you’re looking at buying an NFT as an investment – there is no guarantee that someone will be willing to buy it from you.

NFTs originated on Ethereum, which is still one of the most popular blockchains for NFTs. Other blockchain platforms that are used for NFTs include Flow, WAX, TRON, and Zilliqa. Generally speaking, NFTs can be issued on any blockchain platform that supports smart contracts.