Utility emerges as a crucial parameter for determining how to evaluate NFT projects. An NFT must have real-world utility in order to carry value.

For instance, NFTs could be used to tokenize securities, precious metals, and real estate;to represent game assets or virtual land, among other things. The NFT industry is still in its infancy, but as it develops, novel applications are certain to emerge. An NFT gains value from its inherent characteristics as soon as it is minted. The value increases over time according to the project's utility and community support. An excellent illustration of such tokens is the Decentraland NFT, which refers to virtual land plots within the project.