Top NFT tokens by Market Capitalization
Quote NFT collectible tokens sorted by market cap, trading volume and change.
What are NFTs?
NFTs are blockchain-based tokens that are used to represent ownership of an asset. NFT is an acronym that stands for »non-fungible token«.
To better understand the meaning of “non-fungible”, it is better to compare it with the term “fungible”. Most of the tokens you've probably dealt with in the cryptocurrency market it is fungible – individual units of the token are interchangeable. Examples of fungible tokens are UNI, MKR, and USDC. For example, all UNI tokens are the same and none of them have unique properties.
NFTs are non-fungible, meaning they are not interchangeable with each other. Each NFT has a unique identifier that distinguishes it from other tokens issued in the same blockchain.
How are NFTs used?
NFTs are used to represent ownership of various items. Most commonly, NFTs represent 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, such as physical artwork, real estate and collectibles.
NFTs can be seen as a digital certificate of ownership that can be easily 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 associated with the animation. Someone who wants to support the artist would buy the NFT and then own the private keys associated with the token. Later, the holder can sell the NFT if someone offers to buy it. And while anyone could see the animation, only one person would keep the NFT associated at any given time.
NFT issuers can also create multiple NFTs that reference the same item. Let's take an imaginary card game as an example – you can create 1.000 NFTs, each representing a common card, and create only 10 NFTs to represent an ultra rare card.
How do you buy and sell NFTs?
You can buy and sell NFTs on marketplaces that connect NFT owners with people interested in buying them. An example of a popular NFT marketplace is Nifty Gateway, which collaborates with artists to launch NFT collections called »drops«. NFTs sold through these drops can be traded between Nifty Gateway users. OpenSea, another popular marketplace, allows users to put their NFTs up for sale or even issue their own NFTs.
NFTs are growing in popularity very quickly and we can expect many new NFT platforms to enter 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. As each NFT is unique, there is a possibility that you may not be able to find a buyer for your NFT, regardless of how much you paid for it. So keep this in mind if you're considering buying an NFT as an investment - there's no guarantee that someone will be willing to buy it from you.
What blockchains are used for NFTs?
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.