Nonfungible tokens, or NFTs, have gained significant traction in the crypto space in recent months, with some tokens selling for millions of dollars. Fifty-fifty though the current excitement over NFTs will eventually simmer down, the concept will alive on, according to the CEO and founder of MyEtherWallet, Kosala Hemachandra.

"NFT is currently a hot topic, but I'yard sure the hype around it will shortly dice down," Hemachandra told Cointelegraph. "Similarly, ERC-20-based tokens were a hot topic in 2017 because of ICOs, at present it'southward not news to anyone, as people use those tokens daily."

All non-fungible tokens are provably unique, and therefore singled-out in value. They tin not be interchanged i-for-one with another asset of their kind, because each NFT contains verifiably singled-out characteristics. These differences touch each token'southward rarity (and sometimes their utility inside an ecosystem), even if they appear to be superficially similar at first glance.

"The value of an NFT is purely based on how much a person who is interested in it is willing to pay," Hemachandra said, adding:

"If someone is really interested in an NFT sold in 2021, I'g sure that person will pay any corporeality to buy information technology in 2030. That's why we cannot say that 2017 cryptokitties aren't valuable now. I'1000 pretty certain even now some people'd love to get concur of some of those unique items for a higher price if the current possessor is willing to sell."

CryptoKitties, the kickoff functional NFT implementation, were notably popular in the crypto space back in 2017.

The NFT scene as well resembles initial coin offerings, or ICOs, in 2017, co-ordinate to Nadav Hollander, co-founder of Dharma. "NFTs feel like they're going to play out a lot like ICOs — 6-9 months of increasingly loftier-value and nauseatingly cynical sales, followed by a multi-twelvemonth crash," he tweeted on February. 24.

Hemachandra sees big potential for the NFT niche, although he questioned the rationale backside the market's current hype. "Is it the ownership or the status of buying? Right now the entreatment of NFT's is the condition of owning one," he said, adding:

"NFTs are hot in the same fashion lambo's are hot to bitcoin purists. I think this current version of non-fungible tokens will go along to evolve into bigger and broader use cases. Things like existent estate and proof-of-ownership of tangible property; wherever NFTs tin help execute legal actions. That is when things will kickoff to get actually interesting."