NFTs Extraordinary Rise and Fall

Through the years, non-fungible tokens have become an important part of the cryptocurrency ecosystem, with different characteristics and functionalities than fungible tokens, such as BTC and ETH. Accordingly, they experienced a massive hype in price and value by thousands of percent and reached more than tens of millions of dollars in some cases and collections. It has been said that the NFT market size touched $2 billion in 2021. But this steep price explosion did not last long due to an allegedly main reason.

Despite the NFTs' common type as a piece of art, in the shape of graphical objects, and their typical application as a decorative digital picture, they were not truly practical and beneficial for their owners. They were created by companies or groups of artists and developers to be bought and sold for higher prices and profiting purposes, not for their inherent values and usability. Consequently, now thousands of people are out there with their NFTs in hand, worth not even a cent, and there isn't any actual buyer. This lack of applicability resulted in the emergence of a new concept named Utility NFTs.