What are NFTs: Distinct digital assets that are not cryptocurrencies

The digital revolution has introduced new ways for people to envision ownership. What is an NFT (non-fungible token) in practice? Simply put - NFT what is it: in one word, they are unique digital assets on a blockchain network that function fundamentally differently from traditional cryptocurrencies.

While cryptocurrencies like Bitcoin or Ethereum are interchangeable - one unit equals another unit - NFTs are non-fungible. Each individual token has its own value and properties. Blockchain technology serves both categories, but their applications and purposes differ radically.

Why distinguish between them?

For anyone interested in digital assets, this distinction is crucial from a pragmatic perspective:

• Asset Management: Portfolios combining both types of assets require different strategies. NFT marketplaces behave differently than cryptocurrency exchanges - their liquidity, volatility, and valuation follow their own logic.
• Legal Issues: Regulators worldwide are gradually clearly distinguishing between fungible cryptocurrencies and non-fungible tokens. Understanding these differences protects investors from legal problems.
• Market Opportunities: The NFT economy operates on the principle of ownership of a specific object. Unlike cryptocurrencies, which serve as a medium of exchange, NFTs represent rights to a particular item - whether it’s a piece of art, a gaming item, or a music recording.

Where are NFTs really used?

The NFT market has experienced dynamic growth in recent years. Sales volume reached a historic $25 billion in 2021. Although the market experienced a correction in 2023, it stabilized in 2025 with a focus on practical use rather than pure speculation.

Art and Collectibles Sector

Collecting and art have undergone transformation. Bekopýr and other digital artists tokenize their works via blockchain, guaranteeing authenticity and rarity. Sales worth tens of millions of dollars have shown that the market takes digital ownership seriously. Artists now have direct control over the price and distribution of their works.

Gaming Industry and Virtual Worlds

In the gaming ecosystem, players own unique items via NFTs. In the Decentraland project, players acquire virtual land and equipment as real assets. These items can be sold or rented to other players, creating a complete economy within the game.

Music and Creative Industry

Musicians utilize blockchain and NFT tokenization to emancipate from traditional publishers. Platforms like Audius enable a direct relationship between creator and listener, where copyrights and earnings remain in the artist’s hands.

Sports and Fan Experience

Sports organizations and athletes have jumped on the NFT collectible bandwagon. NBA Top Shot allows fans to own and trade iconic moments from NBA games, creating a new type of relationship between fans and their favorite teams.

Numerical Data and Market Development

User engagement on NFT markets is experiencing exponential growth. The number of active wallets focused on NFT trading increased by 120 percent year-over-year in 2025. This growth indicates that the sector is maturing from a speculative bubble stage to a phase focused on real-world use and long-term value.

Market segmentation clearly shows: art, gaming, and intellectual property lead in adoption trends. These sectors are building more stable ecosystems around NFTs than pure collectibles.

What to take away from this?

NFTs are not cryptocurrency - this is an elementary fact that every investor must understand. They are ownership rights to unique digital items. Understanding this difference is not an academic exercise; it’s a practical skill for managing finances in the digital age.

Key insights:

• Non-fungible tokens and cryptocurrencies share blockchain, not purpose
• Practical NFT applications have moved beyond experimentation and are now stabilizing individual industries
• Regulatory environments are evolving faster than the market, increasing the importance of understanding the differences
• Investment opportunities in NFTs differ from those in cryptocurrencies

As the digital ecosystem evolves, distinguishing between these technologies remains crucial for informed participation in the economy of tokenized assets.