NFTs Explained: What Are Non-Fungible Tokens?

Crypto Basics

NFTs Explained: What Are Non-Fungible Tokens?

A definitive guide to explain NFTs, or non-fungible tokens.

Token Metrics Team

7 minutes

MIN

Index

Overview of Solana Blockchain

NFTs, or non-fungible tokens, are gaining widespread popularity in the market for digital art and collectibles. In recent years, NFTs have become a cultural phenomenon, attracting the attention of crypto enthusiasts, digital art creators, and celebrities alike. As the Web 3.0 ecosystem continues to grow and adoption increases, many believe that NFTs will play a key role in the ownership of assets online.

So what are NFTs? Let's find out.

‍NFT Basics

NFTs, or non-fungible tokens, are a type of digital asset that represents ownership of something on the blockchain.

NFTs can be anything such as art, collectibles, music, profile pictures or PFP, DAO memberships, event tickets, gaming assets, virtual land, domain names, and so on. They can represent either completely digital assets or tokenized versions of assets that exist in the real world. Currently, there is a lot of excitement around using NFTs to sell virtual art.

Characteristics of NFTs

Ownership: NFT represents digital ownership of an item on a blockchain
Permanent: NFTs have data permanently stored within the token. This information includes images, messages, signatures, or any other data
Programmable: An NFT can be programmed to do anything. For example, an NFT artwork might be programmed to pay the artist royalties on every secondary sale of that artwork
Unique: NFTs are unique, and that uniqueness can be confirmed on a blockchain

How to Make an NFT

To create an NFT, or non-fungible token, you will need to first prepare your media file. NFTs can support a wide range of file types, including audio, images, and even 3D files. Some popular file types that are supported by NFTs include MP3, JPG, PNG, and GIF. You can also use 3D file formats like GLB to create NFTs that represent unique, digital objects.

Once your media is ready, you will need to set up a non-custodial wallet to securely store the cryptocurrency that you will use to buy, sell, and create NFTs. Non-custodial wallets are important because they allow you to retain control of your private keys, which are needed to access your cryptocurrency and make transactions. There are many different wallet options available, so it is important to do your research and choose one that is secure and user-friendly.

Once you have set up your wallet, you will need to buy Ethereum, or other fungible tokens depending on the blockchain being used, to cover the cost of minting your NFT. Ethereum is the most commonly used blockchain for NFTs, and it is typically the easiest to get started with. You can buy Ethereum using a variety of methods, including through a cryptocurrency exchange or from other individuals who are willing to sell.

Once you have your Ethereum, you will need to connect your wallet to an NFT marketplace like Rarible or OpenSea. These platforms allow you to easily create and mint your NFT, as well as trade and purchase NFTs created by others. To connect your wallet, simply tap the "Connect" button in the top right corner of the marketplace's website. This will create an account for you on the platform and allow you to begin creating your NFT.

To create your NFT, upload your media file to the platform and provide a description of your asset. You can choose to create a standalone piece, or create multiple NFTs of the same piece, each with its own unique characteristics. You can also set rules around royalties and other aspects of your NFT to ensure that you are fairly compensated for your work.

Once you are ready to mint your NFT, the process will require you to pay a small amount of ETH for transaction fees. This is necessary to get your NFT added to the blockchain and verified as unique. Once your NFT is minted, it will be available for trade and purchase on the marketplace. You can monitor the progress of your NFT and track its sales through your wallet or the marketplace's website.

NFT Secondary Markets

Creators make NFTs using blockchain-based minting platforms to retain more control over their creative output. Once NFTs are minted on a non-custodial wallet-compatible website, collectors and traders can sell these assets on the secondary market.

Here is a list of the most used NFT marketplaces:

OpenSea: OpenSea is the first and largest marketplace for NFTs. OpenSea is building tools that allow consumers to trade their items, creators to launch new digital works, and developers to build rich, integrated marketplaces for their digital items. It recently announced the support for Solana-based NFTs.
Coinbase NFT: Coinbase, a cryptocurrency exchange, recently launched its NFT marketplace in beta version to the public. This marketplace acts as a social media platform in which users can not only buy and sell NFTs but also interact with and showcase their collections using user profiles, likes, and comments.
Solanart: Solanart is the first and largest fully-fledged NFT marketplace on Solana. Users can get quick and easy access to digital collectibles, and explore, buy, and sell NFTs that run on the Solana blockchain.
Rarible: Rarible is a do-it-yourself NFT marketplace where you can mint NFTs when and how you please. Creators are highly favorable towards Rarible, as the minting process is free, easy, and unrestricted. Rarible’s native governance token “RARI” is used to incentivize platform users and give the community members a voice.
Nifty Gateway: Nifty Gateway is owned by the Gemini crypto exchange and has become one of the most known NFT marketplaces lately. They focus on viral drops from artists like Beeple, Trevor Jones, Pak, and more.
SuperRare: SuperRare (SR) is one of Ethereum’s debut crypto-art NFT marketplaces. Artists must be accepted to the platform before they can list their assets.

Notable NFT Projects

NFT-based companies have seen significant growth in recent years. Some notable examples include:

Yuga Labs: a blockchain technology company that creates Ethereum-based NFTs and digital collectibles. Yuga's most valuable NFT collection is Bored Ape Yacht Club, which has seen a floor price of over 150 ETH at its all-time high. In addition to apes, Yuga has also created dog NFTs, mutant apes, and deeds for its Metaverse. The company recently acquired Larva Labs, bringing high-value projects like Cryptopunks and Meebits under the Yuga brand. Yuga is backed by investors like Coinbase, Samsung, and Mark Cuban.
Doodles: a collection of 10,000 Ethereum-based NFTs created by artist BurntToast. The Doodles collection includes a wide range of visual traits, heads, costumes, and colorways. Owners of Doodles NFTs have exclusive access to new experiences like Space Doodles and Dooplicator.
Okay Bears: a collection of 10,000 Solana-based NFTs. Ownership of an Okay Bear grants access to a community of collectors and exclusive products, merchandise, and events.

Investing in NFTs

NFTs, or non-fungible tokens, provide many benefits as an investment vehicle.

One of the main advantages of NFTs is that they allow physical objects, such as artwork, to be tokenized.

Additionally, NFTs offer greater liquidity for investors, making it easier to trade and sell their assets.

The Future of NFTs

NFTs offer a new way to represent and prove ownership of assets on the blockchain.

This technology has already been used for digital art, collectibles, and in-game assets, but it has the potential to be applied to a wide range of other industries as well. For example, tokenized real estate could provide a way for people to invest in property without the barriers to entry that currently exist.

High-end fashion brands like Louis Vuitton have also expressed interest in using NFTs to track the ownership of luxury items.

Additionally, NFTs can be used to tokenize certifications, degrees, and licenses, providing a way to securely track and maintain this sensitive data on the blockchain.

Overall, the potential applications for NFTs are nearly limitless.

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Solana Price Action: Will the Bulls Regain Control? Token Metrics Signals Offer Clues

Token Metrics Team

4 min

MIN

Solana has been one of the most closely watched altcoins in the 2025 crypto cycle. With its blazing speed, developer activity, and expanding DePIN ecosystem, Solana has remained on every smart investor’s radar. But with the broader market pulling back sharply — and Bitcoin dipping below $105K — traders are asking: Is Solana still a buy?

Token Metrics' AI-powered tools offer critical insights into this volatile moment.

April's Bullish Signal Paid Off
Token Metrics’ proprietary indicator turned bullish on Solana on April 19, when the price was just $138.18. That signal wasn’t just noise. Within a month, Solana surged by 33.1%, reaching $184 by May 23.

This kind of real-time, data-driven signal is exactly why traders are turning to Token Metrics. Rather than guessing or chasing hype, our platform delivers objective, AI-backed alerts that help traders enter early and exit intelligently.

The Pullback: Market-Wide, Not Solana-Specific
Fast forward to today, and the story has changed. Solana is undergoing a major pullback, largely driven by the overall market correction. Bitcoin’s slide below $105K has dragged most altcoins down, Solana included.

However, Token Metrics' Trader Grade for Solana is now 'Neutral' — not bearish. That’s a crucial distinction. While momentum has cooled, our system is not yet signaling a full reversal. That means there’s still room for recovery.

Technical Outlook: The $160 Level is Critical
Technical analysis highlights a key battleground at $160. If bulls can reclaim this level in the near term, the uptrend could resume. Failure to hold above it, however, could open the door for deeper losses.

Token Metrics users can monitor these levels in real-time with our dynamic charts, trend indicators, and updated market signals.

What Traders Should Watch Next

Market Signal Shift: If the Token Metrics market signal flips to bearish, it’s a red flag. Until then, volatility may still offer upside.
$160 Breakout: This is the technical threshold bulls must defend.
Volume and Sentiment: A spike in volume or positive narrative news could signal a reversal.

Conclusion
Solana remains a high-potential asset — but trading it without real-time analytics in this environment is risky. Token Metrics doesn’t just tell you what’s happening; it shows why it’s happening and what to do next.

Join Token Metrics today to access AI-powered trading signals, risk analysis, and the tools to trade crypto like a pro — even in uncertain markets.

Research

Bearish Signals Ahead? How to Spot Early Warnings Before a Crash

Token Metrics Team

4 min

MIN

In crypto, everything can change overnight. One minute the market’s bullish — the next, it’s bleeding red. That’s why the ability to spot bearish signals early is crucial for protecting capital and maximizing long-term gains. Token Metrics gives traders an edge with AI-driven alerts that help you act before the crash hits.

Why Most Traders Miss the Top
Retail traders often get caught in the hype. By the time “everyone” is talking about a token, it’s usually too late. The smartest investors are watching subtle changes in data: volume drops, negative sentiment, weakening momentum.

Token Metrics makes those patterns visible before price crashes.

What Is a Bearish Signal on Token Metrics?
A bearish signal is a warning based on:

Declining Trader Grade (below 30)
Negative ROI since signal
Volume drying up while price holds
Bearish crossover in trend indicators
Weakening fundamentals or fading narratives

These signals are automatically triggered and displayed on the Market Page.

How to Identify Bearish Tokens Early

Sort by Negative ROI – See which tokens have declined most after a bold signal.
Filter by Trader Grade < 30 – These are tokens losing short-term momentum.
Look for Divergence – If price is flat but volume or sentiment drops, the setup may be turning bearish.

Behavioral Clues You Shouldn’t Ignore

Signal stops updating – Token Metrics halts signals when confidence fades.
Narrative dies down – No more tweets, community quiets down? Trouble ahead.
Trending to Stagnant – Tokens drop from Top Gainers list quickly.

Real Example: Avoiding Losses with Signal Data
Ian Balina mentioned how users avoided major losses by exiting weak tokens early thanks to falling grades and bearish signals. Instead of hoping, they acted — preserving capital and rotating into stronger plays like Launch Coin or AI tokens.

What to Do When You See Bearish Signs

Don’t panic – Act on data, not emotion.
Set stop-losses based on bold signal entry points.
Rotate capital into high-grade tokens or stablecoins.
Monitor daily – The market can flip from bullish to bearish in hours.

Combining Risk Management with Signals
Token Metrics isn’t just about finding moonshots. It’s also about knowing when not to buy or when to exit early. By using bearish signals, you protect yourself from downside while staying positioned for the next big opportunity.

Conclusion
The best crypto traders aren’t just profit-hunters — they’re risk managers. Bearish signals from Token Metrics help you anticipate weakness, reduce losses, and trade with clarity. In a volatile market, that edge can make all the difference.

Research

From Retail to Institutions: Who’s Driving the Crypto Market in 2025?

Token Metrics Team

4 min

MIN

Crypto markets are evolving — and fast. In the early days, retail investors dominated the space. But by 2025, the tides are shifting. Institutional investors, family offices, and algorithmic funds are entering the market at scale. This blog explores the growing divide — and how it’s reshaping opportunities for everyday traders.

The Rise of Institutional Money in Crypto
Over the last year, a new class of investors has emerged: professional firms with deep pockets and long-term horizons. They're no longer just “exploring crypto” — they’re actively deploying capital.

Why now?

Regulatory clarity in major jurisdictions
Bitcoin ETF approvals and crypto fund launches
Better custody, risk management, and analytics tools (including Token Metrics)

What Are Institutions Buying?
Institutions tend to avoid meme coins and hyper-volatility. Instead, they focus on:

Layer 1 Infrastructure – Ethereum alternatives like Sui and Avalanche
AI Tokens – Leveraging real-world utility and strong narratives
DeFi Blue Chips – Projects with consistent TVL and governance upgrades
Stable Yield Strategies – On-chain bonds, staking, and real-world asset tokens

Token Metrics has seen a spike in institutional users filtering by Investor Grade and project fundamentals.

Retail Traders Still Dominate One Arena
Retail traders are far from out — they dominate high-volatility narratives:

Meme tokens
Social coin launches (e.g., Launchcoin)
Short-term speculation based on influencer sentiment

Retail’s edge? Speed, risk tolerance, and virality. Many of Token Metrics’ bold signals still originate from this activity before institutions catch on.

Token Metrics Bridging the Divide
What makes Token Metrics powerful in 2025 is its ability to serve both segments:

Institutions use it for due diligence, grades, and long-term planning.
Retail traders use it for short-term signals, alerts, and narrative tracking.

This dual capability creates a level playing field, where data, not capital, is the edge.

How to Trade Based on Who’s in Control

When institutions lead – expect slower but more sustainable growth. Focus on high Investor Grade tokens.
When retail leads – expect fast-moving pumps and dumps. Use high Trader Grade + bold signals.
Hybrid phase (now) – Use both metrics to balance volatility and long-term conviction.

Market Behavior Patterns to Watch

Low volatility + high inflows → Institutional buildup
High volume + sudden spikes → Retail-driven narratives
Diverging BTC vs. altcoin trends → Mixed sentiment cycles

Conclusion
The crypto market in 2025 is being driven by both the old guard and the new wave. Institutions bring maturity. Retail brings momentum. Smart investors use tools like Token Metrics to read the room — and position themselves accordingly.

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