Non-fungible tokens (NFTs) are unique digital assets on a blockchain, starting with applications like art.NFTs have evolved into NFT2.0, with focus on Defi NFT and financialization of collections.DeFi NFT has seen growth, tackling issues like fair distribution, liquidity, and capital efficiency.New models like dynamic pricing and refundable NFTs are changing the game.Fractionalization and marketplaces are enhancing liquidity and access to capital for NFT holders.Dynamic NFTs, fractionalized trading, and cross-platform utility are reshaping the NFT landscape.NFTs are being used to tokenize real-world assets like real estate and stocks.Community management rights have led to veNFTs becoming standard for reward distribution.The introduction of ERC-404 tokens integrates liquidity mechanisms for fractional NFT trading.NFT-backed lending protocols like NFTfi provide liquidity without selling assets.