With Bitcoin’s price surging earlier this year; and then diving again after the recent Ethereum heist and Trump’s tariffs dominated headlines, NFTs have largely flown under the radar. But while they may not be grabbing the limelight of late, the innovators behind them have done anything but lie low. A far cry from their beginnings as a way of monetising digital collectibles sold via NFT marketplaces like Magic Eden, NFTs today are transforming digital ownership, redefining industries and unlocking new opportunities in gaming, music, finance and many other industries.

If you don’t believe us Google the Maha Kumbh Mela, a sacred Hindu pilgrimage. In early January this year, Indian Railways announced that it would issue NFT-based train tickets for the Hindu festival which is held once every 144 years and attended by 400 million people. The NFTs provided a digital-first experience for festivalgoers that complemented the event's spiritual significance – including offering participants exclusive digital collectibles and personalised digital quizzes on the festival and Indian mythology. With the media praising the initiative as “bridging the gap between tradition and technology,” concertgoers globally have been asking if this will become the gold standard in event organisation in future.

What are NFTs?

Non-fungible tokens (NFTs) and how they work can be complex to grasp.

NFTs, or non-fungible tokens, are unique digital assets that represent ownership of a specific item, piece of content or collectible on the blockchain. It’s their scarcity and exclusivity that have seen these assets go “viral” in the news, such as the controversial NFT collection by First Lady Melania Trump called Melania’s Vision, which included a limited-edition digital artwork of her eyes.

Unlike cryptocurrencies like Bitcoin or Ethereum, which are interchangeable (one Bitcoin is always equal in value to another Bitcoin), NFTs are unique digital assets. This means that no two NFTs are exactly the same, even if they are both part of the same collection. Each NFT has a distinct identity and metadata recorded on the blockchain, making it “non-fungible” or meaning it cannot be swapped on a one-to-one basis like traditional currencies. This uniqueness is what makes NFTs valuable for digital art, collectibles and other assets where individuality matters such as concert tickets and even deeds to a house.

While NFTs aren't cryptos themselves, most are hosted on the Ethereum network.

The rise of NFT metaverses

The metaverse is a digital universe where people can interact, work, play, and even socialise in immersive virtual environments. Think of it as an internet you can actually step into – made up of interconnected virtual worlds where you can own digital assets, attend concerts, shop in virtual stores, and even meet friends using your avatar. The metaverse uses technologies like virtual reality (VR), augmented reality (AR), and blockchain, which enable users to experience a blend between our physical and digital worlds.

NFT-powered-metaverses are the next evolution of this trend, representing digital spaces where users can trade, display, and interact with NFT assets ranging from virtual real estate to immersive social experiences.

Right now, many big brands are launching digital storefronts, such as Nike’s Nikeland on Roblox, where users can dress their avatars in virtual Nike gear and participate in branded challenges. In addition, auction house Sotheby’s created a virtual gallery in Decentraland to showcase and auction NFT digital art.

“Virtual land” in metaverses is also becoming a serious investment. Whether for social hangouts, business meetings, or virtual advertising, owning this digital real estate is starting to resemble traditional property investment. Companies are purchasing virtual storefronts, and influencers are hosting branded experiences, creating a whole new NFT-driven digital economy.

Imagine walking into a virtual mall, purchasing exclusive NFT fashion items and showcasing them on your avatar across multiple metaverses. The digital world is becoming as tangible as the real one, and it is predicted that owning virtual land or assets may even be as lucrative as traditional property investment.

Reinventing the music industry

Imagine buying an NFT album that gives you lifetime access to an artist’s future concerts or owning a piece of a song’s future royalties. This direct-to-fan model is empowering artists and reshaping the music business, as musicians use NFTs to sell exclusive albums, backstage passes, and limited-edition collectibles directly to their fans – cutting out “middlemen’” like record labels and boosting revenue.

In this world being a superfan comes with real perks. Owning an NFT from your favorite musician could mean front-row seats for life or exclusive access to unreleased track and a share in the song’s royalties.

Gaming gets serious

Unlike traditional games where in-game purchases are locked to one platform, blockchain-based games allow players to sell, trade, or lend their NFT digital assets across different gaming ecosystems. This play-to-earn model is reshaping in-game economies, and major game studios are entering the space, leading to better graphics, richer storytelling, and more rewarding experiences for gamers.

Your in-game sword or armour isn’t just stuck in one game, but it can be sold or used across many different virtual worlds, making your gaming investments more valuable and long-term.

NFTs as financial assets

In crypto, the process of converting real-world assets or digital rights into blockchain-based tokens is called tokenisation. These tokens can represent anything from ownership in physical assets (like real estate, art, or stocks) to digital assets (such as in-game items or intellectual property).

Imagine borrowing against a rare NFT rather than being forced to sell it. This is the kind of financial flexibility that DeFi (decentralised finance) integration is bringing to NFT markets. Today, NFTs aren’t just collectibles; they’re quickly becoming financial assets. DeFi platforms now allow NFT holders to use these assets as collateral for loans or earn passive income through staking (which is earning interest on your money – but in this case, it’s on your NFTs).

Picture NFTs as digital gold bars (each with a unique identifier) but you don’t have to sell them to access their value. Instead, you can use them as collateral to borrow money, providing a new form of financial flexibility.

AI-generated NFTs

If you can think it, AI and NFTs can probably create it. Artificial intelligence is taking NFTs to the next level. AI can now generate unique NFT art, curate NFT marketplaces based on user preferences, and even create interactive NFTs that evolve based on external factors like weather or market trends.

Imagine owning an NFT that changes over time, such as an artwork that morphs with the seasons or a character that ages alongside you. The line between creativity and technology is blurring and is making digital art more dynamic than ever before.

Digital identity

SoulBound tokens (SBTs) are a new kind of NFT that stays permanently linked to its owner, making them ideal for certifications, memberships and personal achievements. Imagine a university diploma issued as an NFT that can’t be transferred or copied – or a digital passport that verifies your identity across multiple platforms. This innovation could revolutionise how credentials and personal data are stored online as governments worldwide grapple with data protection and sovereignty.

Think of SBTs as your very own digital resume. Your university diploma, professional certifications or even a VIP club membership could be stored as an NFT that’s uniquely yours, impossible to forge and instantly verifiable by anyone who checks.

Real-world benefits

NFTs are evolving to become interactive and functional – granting access to exclusive content or offering perks like voting rights in a community or discounts on products. A fashion brand, for example, might issue an NFT that gives its holder early access to new collections or tickets to private events. This added functionality makes NFTs about more than just digital ownership; they become tools for engagement and loyalty.

NFTs are no longer just speculative assets; they’re shaping industries and creating an exciting new future for creators, businesses and consumers. They will continue to redefine how we interact with the digital world and one day soon, it’s likely that every single one of us will use them.